Tax Hits Hard Following Finance Bill

Taxpayer pockets will feel a little lighter following the publication of the new tax policy, outlined in the Government's widely contested budget in October.

Average earning families can expect to lose €500 from their take home pay due to the increased levies, charges and taxes despite calls from the opposition that the 1% tax levy was targeting vulnerable people.

However, the Finance Minister Brian Lenihan also announced a 3% levy on all incomes over €250,000. High earners are now on the Government hit list to make up the multi billion pound tax shortfall expected for this year.

Mr Lenihan also closed a loophole allowing tax exiles certain exemptions in the Finance Bill that introduced 17 new taxes and increases, including changes in Capital gains tax, and adjustments to various tax bands.

Delivering the Bill, Mr Lenihan said: "The measures contained in this Bill strike a balance between the need to protect those on low incomes, and the need to restore order to our public finances."

The measures will be debated in the Dail next week and are expected to be accepted by the house.


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