[ad_1]
Finance Minister Paschal Donohoe has said that there will be no income tax increase in the next budget.
Speaking in Dublin on Thursday, 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 make 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 that says about our economy, it tells me that momentum is building within our economy,” he added.
“That is why decisions regarding the medium-term plan for public health are so important. But in terms of the impact it will have on Budget 2021, September is always a very significant month in terms of tax revenue and it’s the last 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. “
Mr. Donohoe went on to say that “even at this point I will have to look at the value of another month’s tax collection to form an opinion as to whether the trend we are seeing right now is sustainable throughout the year and will remain the same. next year.”
He said that 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 that deficit will be because that depends on what happens with the pandemic.
Deal Today
Get the latest business news and commentarySIGN UP HERE
[ad_2]