A new 30% tax rate in Ireland could form a major part of next month's Budget - with Leo Varadkar all but confirming it's introduction yesterday.
Budget 2023 is set to be a €6.7 billion package, with hopes that the cost of living crisis, inflation, and vacant homes will all be dealt with in some way or form.
We're starting to get a few hints from the Government about what might be in store, the latest of which came from Leo Varadkar on Wednesday.
Around €1 billion is expected to be put aside for tax relief, and the new 30% rate will form part of a wider range to help middle-income workers, the Tánaiste has said.
Speaking to reporters, Mr Varadkar said: "The most important thing to emphasise is that it will contain a substantial income tax package that will reduce income tax for low-income, middle-income and high-income workers - but there's a particular emphasis on middle-income workers."
If the 30% bracket was introduced for people earning between €36,800 and €46,800, they would save €1,000 per year.
The news came hours after the publication of the Tax Strategy Report, prepared by economists at the Department of Finance for minister Paschal Donohoe.
The annual review of potential tax measures is published in advance of the Budget - which gives the Government a number of options on the cost of increases or reducing taxes.
Should it be introduced, the middle-income rate of 30% would help over one million taxpayers amid the cost of living crisis.
Paschal Donohoe, speaking at a press conference on Wednesday afternoon, stressed that no decisions would be revealed until he delivers the Budget to the Dáil next month .
He said: “The papers present the options we will look at when preparing the budget next month, but they are not yet decisions.”
Meanwhile, lobby group Drinks Industry Group of Ireland claimed the government can protect tens of thousands of hospitality and drinks sector jobs with a 7.5% reduction on excise tax on alcohol products.
Chair Kathryn D’Arcy said: “If you want to promote Ireland as a great place to visit, then we must ensure we are competitive for those who visit the country. Reducing excise tax can be introduced overnight with an immediate impact.”
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