Tuesday 24 October 2017

Savers to benefit if Fianna Fail voted back in to Government

Fianna fail finance spokesman Michael McGrath
Fianna fail finance spokesman Michael McGrath
Philip Ryan

Philip Ryan

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.

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