'difficult winter' | 

Budget 2023 to include ‘one-off measures’ to help with cost of living crisis

‘We know many are feeling the squeeze, we know the money that’s in your wallet isn’t getting you what it used to be able to get you and we want to see how we can help with that’

Finance Minister Paschal Donohoe. Picture: Gareth Chaney

Finance Minister Paschal Donohoe. Photo: Gareth Chaney/ Collins Photos

Seoirse MulgrewIndependent.ie

Finance Minister Paschal Donohoe has said Budget 2023 will include one-off measures this calendar year to help with the rising cost of living in what could be a “difficult winter”.

Minister Donohoe said the Government will implement measures that will help households deal with rising levels of inflation.

The Budget is allocated to be €6.7 billion and Minister Donohoe said he has “no plans at all” to change that figure.

“Budget 2023 will have personal taxation measures in it that recognise that families and households are working really hard at the moment, that the rising cost of living is biting, and we want to help with some of the higher costs that many are facing,” he said.

“We will have a personal tax package to help with that. In terms of what will be the content of that, what I do recognise is you enter the higher rate of income tax here in Ireland when you’re on a normal or average wage.

“And that’s very different to many other economies that we compete with, and Budget by Budget I’ve changed that and what we will do in the coming weeks is identify how best we can do that again.”

Finance Minister Paschal Donohoe. Photo: Gareth Chaney/ Collins Photos

Minister Donohoe said it will be “hard” to make any changes this year in relation to personal taxation as every employer will be required to change their payroll systems.

“The critical point of this overall is that earlier on in the year the Government confirmed and announced that we would have tax changes of just over €1 billion as part of Budget 2023 and that’s what we will be doing,” he told RTÉ’s Morning Ireland.

“We know many are feeling the squeeze, we know the money that’s in your wallet isn’t getting you what it used to be able to get you and we want to see how we can help with that.

“At a time in which wages are going up, we believe we should be doing what we can to help workers keep as much of the money that they’re earning.

“The objective is how we can change personal taxation in a way I believe is affordable, in a way I’m confident won’t create further risks in the future but also in a way that can help in 2023.”


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