Stealth levies in Ireland are among ‘the highest in the world’
A CONSUMER price survey has debunked the myth that Ireland is a ‘low tax country’ due to the huge level of stealth levies people pay here.
Daragh Cassidy of price comparison website Bonkers.ie says income tax payers pay thousands more in tax every year than comes out of their pay packet.
He points to the example of a couple earning €100,000 jointly. In income taxes alone, their tax rate is just under 36% taking into account allowances. But when all the stealth taxes they pay are taken into account the figure jumps to a rate of 48% on their gross income.
Mr Cassidy told the Irish Mail on Sunday: ‘You look at our income tax rate and we look like a low tax country. But if you look at all the other taxes we pay, which many other EU countries
don’t have to pay, you see we’re actually in the middle to high taxation bracket.’
He added: ‘The Government will claim its hands are tied when it comes to the rising cost of living, happy to blame world energy markets or perhaps Brexit. And while it’s true that many of the reasons for the recent spike in inflation are outside of its control, there are numerous ways in which the Government adds to the cost of living here.’
Mr Cassidy said Ireland’s standard 23% rate of VAT ‘is one of the highest in the world.’ But other charges such as carbon tax, excise duty, stamp duty and surcharges significantly add to the cost of living here.
Mr Cassidy said: ‘These are all within the power of Government to reduce or abolish if it wanted to.’