Deputy Catherine Callaghan has called for reforms to income tax thresholds in Budget 2027, saying the changes would help workers keep more of what they earn while also supporting businesses facing labour shortages.

The Fine Gael TD said raising the threshold for the higher rate of income tax would encourage employees to take on additional hours without seeing much of their extra earnings lost to taxation.

Speaking in the Dáil, Deputy Callaghan said she recently visited a farm in Kilkenny where labour shortages during peak periods are creating significant challenges.

"It's not that people don’t want to work the extra hours. It’s that once they do, the tax bracket eats the difference, and they end up with less money in their pocket not more. "It isn't just food producing or horticulture where an initiative like this would ease the strain on businesses, but it would also help in the manufacturing sector as well as hospitality

"This can be a real benefit to both employees and employers.

"If someone is willing to put in extra hours, they should feel it in their pocket. Fine Gael has always stood by and represented those who are working hard and providing for their families."

She said reforming the tax system would provide greater incentives for people to work additional hours while helping employers in sectors that rely on overtime during busy periods.

Responding in the Dáil, Minister for Enterprise, Trade and Tourism Peter Burke said the Government must continue to incentivise work and that Budget 2027 should make a significant statement on income tax reform.