Savers to benefit if Fianna Fail voted back in to Government
FIANNA Fail will exempt savers from DIRT tax on the first €200 of interest earned on savings if voted into Government.
Speaking at the Fianna Fail Ard Fheis, the party’s finance spokesman Michael McGrath said the Government had taken a “staggering” €2bn out of private pensions savings.
Mr McGrath said the Coalition also increased the tax on interest made from savings from 27pc to a “whopping” 41pc since taking office.
“On the one hand, the Government say they want people to invest in a pension and to save for their future, but when people do that – they get crucified. How often have we heard people say – I would be better off if I had nothing,” he said.
“We are determined to make progress on this issue. We will start by exempting from DIRT, for the first time, the first €200 of interest income earned. This will benefit all savers but will mean most to people with small savings.”
The party also proposed increasing the threshold for inheritance tax from €225,000 to €300,000.
“The reality is that, if the thresholds do not change, many people who are far from wealthy will end up having to sell a property they inherit in order to be able to meet their capital acquisitions tax bill,” Mr McGrath said.
Mr McGrath admitted it would take a number of years to phase out the Universal Social Charge (USC), which was introduced when the party was last in power.