Wednesday 29 March 2017

Dirt tax shambles needs to be cleaned up once and for all

The tax on savings is now so high that it is failing to work as a revenue-generating measure. Photo: Brian Lawless/PA Wire
The tax on savings is now so high that it is failing to work as a revenue-generating measure. Photo: Brian Lawless/PA Wire
Charlie Weston

Charlie Weston

It may have seemed like a good idea, at a time of austerity, to keep hiking the tax on savings in a bid to force householders to withdraw their money and spend it.

That was the thinking when the deposit interest retention tax (Dirt) rate was doubled from 20pc in 2008 to 41pc at present.

But the high-tax plan has completely backfired.

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