Four years of tax cuts, lower energy bills, cheap childcare & heating oil price slash… Harris confirms Budget 2027 plans

WORKERS are set for four years of tax cuts as Tanaiste Simon Harris today claimed: “The tax system needs to recognise there is a pinch point for middle income earners.”

The Finance Minister has also revealed that he wants to cut tax on home heating oil in the upcoming budget in a bid to lower prices ahead of the winter season.

The Fine Gael leader was speaking at his party’s “think in” event in the Amber Springs Hotel in Co Wexford ahead of the new Dail term kicking off next week.

The budget, which will be announced in October, is expected to include a series of cost of living measures including income tax cuts, lower childcare fees and new ways to lower energy bills.

The Government came under heavy fire last year for abandoning workers in their budget with no income tax cuts while priority was given to slashing VAT for the hospitality sector and cutting tax for apartment developers.

Tanaiste Simon Harris today said that an income tax cut in next month’s budget will be worth “several hundred euros” and will be the first of four moves for workers.

The Finance Minister intends to increase the point at which people pay the higher rate of tax to target middle income earners while also helping all other workers through increased tax credits.

Currently, a single worker pays 40 per cent income tax on all wages they earn above €44,000.

Minister Harris said he wants to increase this rate every year over the next four years.

He said: “I am trying to anchor income tax policy for the next four budgets.

“I am trying to say to people that, all other things being equal and the economy continuing to be well run, we want each year to make progress on bands and credits.”

The Tanaiste also indicated that the Government are likely to slash tax on home heating oil in the budget to help lower the cost ahead of the expensive winter season.

The Coalition are looking at a range of measures to lower energy bills over the winter, with a series of electricity and gas companies jacking up their prices in recent weeks.

The cost of filling up a home heating oil tank has skyrocketed in recent weeks due to spiralling international oil prices caused by the US war with Iran.

Sinn Fein are planning to table a motion in the Dail next week to call on the Government to slash carbon tax from home heating oil due to these rising costs.

Minister Harris indicated that the Government is considering two ways of reducing home heating oil prices – lower carbon tax or lower VAT from 13.5 per to nine per cent.

He said: “I’m very worried about what we are seeing in relation to home heating oil.

“The Taoiseach and I are ad idem on looking at all of the various levers that are at our disposal.”