Seanad debates
Tuesday, 25 March 2003
Finance Bill 2003 [ Certified Money Bill ] : Second Stage.
The large number of people removed from the tax net is another feature of this progress. In 1997, 25% of taxpayers were exempt from paying tax, whereas today it is 36%. When the statutory minimum wage was introduced in April 2000, less than 64% of the then minimum wage was exempt from tax. Following the 2002 budget, 90% was exempted, despite the increase in the wage last October to €6.35 per hour. Section 3 consolidates the 90% exemption level by providing for increases in the employee tax credits. The entry point to the tax system for all employees is increased from €209 per week to €223 per week. I support the removal of all minimum wage earners from the tax net and I am sure that is one of the Minister's objectives.
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