In its second U-turn of the week the Government announced that the one per cent income levy in Budget 09 will not apply to people on or under the national minimum wage.
This means that anyone on €17,542 or less will not have to pay the one per cent levy. The move has been welcomed by Galway West TD Frank Fahey
“The Government has made this decision in the context of Social Partnership so as to ensure that those who earn the least are protected,” Dep Fahey said.
Although the move is a U-turn and an embarrassing second climb down for the Government, Dep Fahey is unlikely to describe it as a U-turn himself.
“The Government did not take the decision to introduce this levy lightly,” he said, “but unfortunately it is necessary right now given the current economic climate. This exemption of those on the minimum wage is a small adjustment to the measure but an important one nonetheless.”
