Taxs Cuts Needed For Middle Income Workers - Varadkar

Wednesday, 13 April 2022 10:21

By Caoimhe Harney

The Tánaiste says anti-inflation strategy is needed.

The Tánaiste has said the case has never been stronger to implement tax cuts for middle income workers.

Leo Varadkar said a full anti-inflation strategy is needed as the Cabinet prepares to sign off on plans to curb cost of living increases.

This morning's package will see a cut to the VAT charged on electricity and gas down to nine per cent - though not on petrol, diesel and home heating oil which fall outside a special EU derogation on taxes.

A triple week payment of the fuel allowance will be paid, and the PSO levy on gas and electricity is expected to be scrapped.

Ministers have admitted the measures won't drastically reduce bills, and are mostly aimed at offsetting next months carbon tax increase.

Meanwhile Tánaiste Leo Varadkar has said a longer term anti-inflation plan is needed.

He's said that should have six parts including pay rises, stronger consumer law, energy upgrades and addressing the housing shortage.

Varadkar also said there has never been a stronger time to argue for indexing tax bands in the next budget, and that budget 2023 should reduce the cost of childcare considerably.

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