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Finance Minister Paschal Donohoe has said that there will be no income tax increase in the next budget.
Speaking in Dublin this afternoon, Mr. Donohoe said that “the final piece of the puzzle” is the September tax returns and that he will be in a better position to do an assessment of the country’s finances at that time.
“But for Budget 2021 in particular, this budget is coming up, I don’t plan on going to the government with plans to increase income tax.”
Donohoe said that tax revenue has held up well during the pandemic.
“Tax receipts in June, July and August, particularly in relation to income tax, did show that the combination of having a very large number of jobs in our country and a personal tax code that has remained very broad and Very fair in that period, it has meant that our personal tax receipts hold up pretty well, ”Donohoe said.
Deficit
“In terms of what it says about our economy, it tells me that momentum is building within our economy.
“That is why decisions regarding the medium-term plan for public health are so important.
“But in terms of the impact it will have for Budget 2021, September is always a very significant month in terms of tax revenue and it’s the final piece of the puzzle before making a call on what our tax collection will be for the year and then the impact it will have on next year’s budget. “
“So even at this point, I will have to look at the value of another month’s tax collection to form an opinion on whether the trend that we are seeing right now is sustainable throughout the year and will continue into next year.”
Donohoe said there will be, in several years, a deficit that will be the result of “how we have had to increase spending as a result of the new public health measures.”
“There is no finance minister in the world who can now indicate what this deficit is going to be because that depends on what happens with the pandemic.”
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