Brian Cowen (Laois-Offaly, Fianna Fail)

I am also increasing the threshold for the payments of the health levy from €440 per week to €480 per week, or just under €25,000 per year. This means that all workers earning €480 or less per week will be exempt from the health levy.

The income tax exemption limits for senior citizens aged 65 and over are being raised from €17,000 and €34,000 to €19,000 and €38,000 per year respectively for single and married persons, removing a further 9,000 from the tax net. This means our senior citizens will be exempt from income tax if they earn less than €19,000 single or €38,000 married per year.

I propose to increase a number of other tax credits which affect certain people because of their particular circumstances. Widowed persons currently receive an additional tax credit of €500 per year. I am increasing it by 10% to €550 in 2007. A special tax credit is also given to widowed parents in each of the five years following the year of bereavement. I believe that widowed parents deserve greater support during these difficult years and I am increasing the credit by €650 in each of the five years after the year of bereavement. The increased tax credit will range from €1,750 in year five to €3,750 in year one.

A special tax credit is also given to people who care for an incapacitated child. In 2007, I am doubling this tax credit from €1,500 to €3,000 each year.

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