Following reports that tens of thousands of workers face an income tax hike because of a review of the flat-rate expense allowance system, Fianna Fáil Spokesperson on Finance Michael McGrath has called on the Minister for Finance Paschal Donohoe to make a public statement outlining what is being done.
Commenting, Deputy McGrath said that, “Tens of thousands of workers, in various industries, from health professionals to shop assistants, have received flat rate tax allowances on their income tax to account for expenses incurred as a result of their work. This regime has been in place for decades.
“To end this regime without any consultation or warning is not acceptable and the Minister needs to confirm exactly what is happening and what the impact will be for ordinary workers. Many ordinary hard working families out there are dealing with higher rents, higher insurance costs, higher heating costs, higher childcare costs and higher health expenses. Now it seems that the Government are intent on targeting these families for more revenue.
“At the weekend we heard that Fine Gael wanted to ease the burden on taxpayers. It is incredible that at the same time they would increase taxes on ordinary workers, many of whom are on the lower end of the pay scale.
“Minister Donohoe must really come out and explain this move and explain the reasoning behind it. It is all very well to pass the buck to the Revenue Commissioners but he is the Minister and he is responsible for the overall tax policy in this country”, concluded McGrath.