The Irish government is set to increase the standard rate tax cut-off point by €2,000 in the upcoming Budget, RTE reported.
This adjustment will raise the threshold from €42,000 to €44,000, allowing individuals to pay the lower 20 per cent rate of income tax on earnings up to the new limit.
The change was agreed in principle following a proposal by Finance Minister Jack Chambers, who tabled the measure during ongoing budget discussions.
The adjustment is aimed at easing the tax burden on middle-income earners.
The proposal was discussed in detail last night during talks between the Finance Minister, the Minister for Public Expenditure, and government party leaders.
Further discussions on the final shape of the Budget are expected to continue throughout the weekend, the report added.
Similarly, the government is also considering a move to reduce the universal social charge (USC) from 4 per cent to 3 per cent for individuals with incomes between €25,760 and €70,004 in next week’s budget, according to a report in the Business Post.