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Taoiseach says no income tax rises within lifetime of current Government

His comments come as the Government borrows billions of euros to cover the cost of the pandemic.

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Taoiseach says no income tax rises within lifetime of current Government (Julien Behal Photography / PA Wire)

Taoiseach says no income tax rises within lifetime of current Government (Julien Behal Photography / PA Wire)

Taoiseach says no income tax rises within lifetime of current Government (Julien Behal Photography / PA Wire)

The Taoiseach has said there will not be any income tax increases within the lifetime of the current Government.

Micheal Martin said the coalition partners would “honour” the commitment made in the Programme for Government not to increase income tax or change the Universal Social Charge (USC) rate.

His comments come as the Government borrows billions of euros to cover the cost of the pandemic.

Income tax, we have said, we’re not going to increaseMicheal Martin

Mr Martin said the parties were of a view that “income tax should not rise”.

“Income tax, we have said, we’re not going to increase,” the Taoiseach said.

The Fianna Fail leader added the same was true of USC.

But he said there may be changes to PRSI following the outcome of the Commission on Pensions.

“We set up a pensions commission. That may well very well come forward with proposals around PRSI, for example.

“That would be more specific to the social insurance fund or to improvements (such as) the living wage or indeed better redundancy mechanisms – for example for workers that are in difficulty.

“So you could be looking at a reorganisation of some of your social supports as well which may necessitate some revenue generating measures that would be exclusive to that or applicable to that area.

“But that’s all to be worked out in terms of recommendations that will come from the pensions commission.”

Mr Martin said the Government would be borrowing about 40 billion euros between 2020 and 2021.

The deficit last year was about 6.5 per cent, it is expected to be 5.7 per cent this year.

“The initial focus will be on winding down the deficit again in the post-Covid era,” he said, adding that a lot will depend on economic growth after the pandemic.

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