The government will not change the income tax in the budget

The government will not change the income tax in the budget

The Finance Minister confirmed that the government has no plans to make any changes in the income tax, USC and PRSI in the October budget.

Pascal Donoho said it was the government’s view that the personal tax code should be kept consistent and used to respond to challenges facing the economy.

“We may have to make decisions in the future regarding social insurance in Ireland,” he told reporters at an online news conference.

“But if we look at where we are heading towards 2021, there is a high level of economic uncertainty. This year, this government wants to give confidence to those who will be earning income for the next year or who have high investment in our economy. Year, ”said Minister Donoho.

“After the 2021 budget, our future budgets will be driven by commitments in these areas in the program for government,” he added.

Donoho said the initial stance before the government makes additional policy decisions in 2021 is that the exchequer will have a deficit of about 4.5% to 5.5% of national income or $ 15 to $ 19 billion in debt.

He said the budget was being drafted against the central planning assumption that Kovid-19 would remain in Ireland for most of next year and that there would be no trade deal called Brexit.

Therefore, the implementation of the Covid crisis and Brexit is the main priority of Budget 2021.

The government also wants to take further action on issues that have been prioritized in the plan for government, especially housing, health and climate change.

READ  Female Afghan peace negotiator wounded in assassination bid | Globe information

A recovery fund will also be set up to allow the state to respond to issues that arise in 2021, but no decision has been made on its scale.

Kovid-19 ancillary measures include Pandemic Unemployment Payment, Additional Health Expenditure and Wage Subsidy Schemes.

Michael McGrath, Minister of Public Expenditure and Reform

He said he is now trying to get in touch with officials on how much that cost will be needed next year for issues such as schools, additional places on the third level, changes in public transportation and the need for health care.

He added that some spending measures, such as public sector salaries, demographics and pressure on demand-driven projects, are committed.

He said capital expenditure would rise to $ 9.2 billion next year and a national development plan was under review.

In connection with the carbon tax, he said he intends to repeat the change in the carbon tax made in last year’s budget and reuse the proceeds from climate change and mitigate the impact of carbon. Taxes for vulnerable people.

In terms of borrowing in international markets, Donohue said the borrowing strategy will be in place for next year until the budget is disbursed.

It will publish a medium-term borrowing strategy in the first half of next year, explaining how it will reduce the deficit over time, he said.

Minister McGrath said no decision has yet been taken on the key social welfare rate.

He added that significant resources would be allocated to deal with the fallout from the non-commercial deal Brexit.

Written By
More from Cheryl Hines

Julie and the Phantoms: Meet up with the Solid

The male powering High School Musical is again with a new teen...
Read More

Leave a Reply

Your email address will not be published. Required fields are marked *