Low income earners will no longer pay the 1% income levy
Minimum wage earners will now be exempt from the Irish Government’s new 1% income levy announced in the Budget.
The 2009 Irish Budget was released last week and included a number of tough changes to help protect the Irish economy from the effects of the global financial crisis.
A 1% income levy was set to be introduced in 2009 on all taxpayers earning less than €100,000 per year, and 2% on those earning above that.
It was announced today that workers earning less than the Irish minimum wage – €8.65 per hour or €17,542 per year – will now be exempt from the levy.
The changes came after trade union leaders met with Taoiseach Brian Cowen last week to express concern about the effect of the 1% levy on low income earners.
Further changes may be announced in the coming weeks to compensate for the expected €60 million loss in revenue as a result of excluding low income earners from the 1% levy.
The average Irish tax refund is €1076.17