New measures will reduce people's tax burdens by €415 - Burke

(Above) Minister of State Peter Burke.

A range of new measures due to be formalised into legislation before the end of the year will reduce people's tax burden by an average of €415 , a local Minister of State has claimed.

Speaking this week, Minister of State Peter Burke said the Finance Bill 2021 will also help an estimated 135,000 workers by increasing the minimum wage and provide up to €30,000 to prospective homeowners in Westmeath by extending the enhanced Help to Buy Scheme.

“This week we see legislation coming before the Oireachtas directly targeted at tackling the cost of living; people’s tax burdens will be reduced, income tax cut-off points will be raised, and personal tax credits will be increased.

“There has been a significant financial burden of rising costs on ordinary workers and families and we are committed to increasing the amount of money people are bringing home at the end of the month. We have seen an increase in the cost of electricity, heating and other amenities and the budget amended the tax bands and cut off points to assist workers tackling these costs by reducing the tax they pay.

“Fine Gael policy is focused on raising income tax cut-off rates to tackle the cost of inflation. Section 6 of the Finance Bill 2021 contains a range of tax band and credit measures, including a €1,500 increase in the standard rate tax band cut-off point. Fine Gael previously introduced the Earned Income Tax Credit, and along with the Personal Tax Credit and the PAYE Tax Credit, it is set to increase by €50.

“Combined, these measures will be worth over €800 to couples on an average wage. This is real money that people will feel back in their pockets, money that will contribute to local communities across the country.

“Those who are continuing to work from home will also benefit from the bill. Section 3 creates a new section in the Taxes Consolidation Act 1997 to provide tax relief for remote workers.

“It will enable workers to claim 30% of the cost of their electricity, heating and broadband, on the basis of the number of days worked from home. This is the first time such a measure will be formalised in legislation, and ultimately it will reduce the overall energy costs faced by those remaining at home.

“This Bill also paves the way for householders to monetise the generation of renewable energy. Households who have energy generators such as wind turbines and solar panels will be incentivised to feed excess energy back into the grid. Section 20 introduces – for the first time – an exemption from tax for the first €200 of electricity a householder generates through renewable means that goes back into the grid.

“Due to Fine Gael policy, Finance Bill 2021 gives workers a break by reducing the amount they pay in tax. The cost of living is rising, and in order to maintain our standard of living, workers and families need to see more money in their pockets at the end of the month,” concluded Minister Burke.