As the Deputy will be aware, the ‘Programme for Government 2025: Securing Ireland’s Future’, contains specific undertakings with regard to personal taxation. It commits to “implementing progressive changes in taxation if the economy remains strong, including indexing credits and bands to prevent an increase in the real burden of Income Tax while in the event of an economic downturn and unexpected deterioration in the public finances we would postpone changes to Income Tax credits or bands, as we did in Budget 2021”.
This Government has committed to, and will stand by, its Programme for Government commitment to make progressive changes to personal income tax, if the economy remains strong over its lifetime.
The Summer Economic Statement set out the parameters of Budget 2027. As you will be aware Budget 2027 will comprise of an overall package of €8.5 billion. Of this, €7 billion will be allocated for public spending, while a €1.5 billion package will be allocated for new taxation measures. This will be centred around a personal income package which will support workers.
However, as the Deputy will appreciate, it is longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters which might be the subject of Budget decisions.