Business Irish

Tuesday 30 September 2014

Nevin Institute: 'Poorer paying more tax'

Published 28/08/2014 | 08:12

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NEW research from the Nevin Institute claims poorer people are forking out more in tax because of indirect taxes like VAT.

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It says that because of indirect taxes and/or excise, the poorest 10pc pay a larger share of their income than the richest 10pc.

However, Ireland's income tax system works on a more you earn, the more you pay basis -

the rate is 23pc for the top 10pc and 0.3pc for the bottom, according to Nevin.

The figures also show that, on average, 24pc of gross income is taken up by tax.

But when you combine direct and indirect taxes a different result is produced, Nevin's Dr Micheal Collins found.

According to his research, the bottom 10pc of the population paid just over 30.5pc of their income in direct, indirect and total household taxation (as a percentage of gross income).

In the top decile, the figure was 29.6pc.

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