Seán Kyne (Fine Gael) | Oireachtas source

Every measure in today's budget, as announced by both Ministers, was welcome and necessary. More importantly, we were able to do it because we had the resources to do it. Tax revenues have stood up compared with last year because of every person in this country who is working, paying tax, purchasing and living. We have seen the resilience of our labour market after the Covid supports we put in place, the purpose of which was to protect jobs and the link between employees and employers. That has meant we are able to put in place the initiatives today in regard to spending and tax. The surge in taxes from corporation tax is welcome. At the same time, the Minister has taken note of the reliance on that. We have to be cognisant of that. People will not see the VAT and excise reductions because they are already there in the case of diesel and petrol.It is certainly necessary that these reductions are continued and their impact can be seen in reduced prices at the pump. Their extension up to 28 February next year is to be welcomed.

The income tax package of more than €1.1 billion is also extremely welcome. The standard cut-off rate is increasing by €3,200 to €40,000 before hitting the higher rate of tax and that is very welcome. I have said it in the House at every budget speech that if the bands are not changed, eventually everyone starts paying higher rates. The bands and thresholds have to increase. I also welcome the increase of €75 in the personal, employee and earned income tax credits and the increase of €100 in the home carer tax credit. The USC thresholds have increased as well to ensure the increases in the minimum wage are not gobbled up by the USC. The band is increasing from €21,295 to €22,920 for the second USC band. I also welcome the comments by the Minister about the preparatory work on the third rate of income tax. The Government will look at that. If it is decided that it is the right thing to do next year in advance of budget 2024, it can be looked at again.

I welcome the extension of the help-to-buy scheme to be continued under the current conditions and rates, and its review. I also welcome the new rental tax credit of €500 for this year and next year as well. It is prudent that some of the revenues collected this year in corporation tax will be put into a reserve fund for this year and next year.