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Taoiseach Leo Varadkar has announced next year\u2019s budget must include an increased carbon tax if Ireland is to meet its obligations to tackling climate change.<\/p>\nTaoiseach Leo Varadkar has announced next year\u2019s budget must include an increased carbon tax if Ireland is to meet its obligations to tackling climate change.<\/p>\n
Making his summer briefing in Government Buildings, Mr Varadkar said he recognized this would affect those living in poverty.<\/p>\n
\u201cIf we\u2019re going to meet our targets we\u2019re going to have to grasp the nettle in pricing carbon and increasing the carbon tax in the next couple of years.<\/p>\n
\u201cWe very much recognize that those living in poverty and vulnerable people will be worst affected by that, so we will have to look at compensatory measures for that.<\/p>\n
\u201cHowever, we will be working on a set of proposals for setting a price on carbon to bring the tax up as part of our climate change obligations.\u201d<\/p>\n
Discussing the 2019 budget, Mr Varadkar said it would be similar to that of 2018, but with additional funding for education and welfare, and lowering the standard rate cut-off point.<\/p>\n
\u201cThe budget will be broadly balanced in 2019, moving to a surplus in 2020, allowing the national debt to be reduced.<\/p>\n
\u201cWhere there are additional resources available, the budget will recognize unmet needs and this will go very heavily to increasing spending and improving public infrastructure over tax reduction.<\/p>\n
\u201cThe tax package will be similar to last year \u2013 modest, with a real focus on raising the standard rate cut-off point, the point where people start paying more income tax.<\/p>\n
\u201cThe average person working full time in Ireland earns around 40-45,000 euro a year, and those people pay income tax at the highest rate.<\/p>\n
\u201cWe will continue the emphasis on raising that threshold and avoiding an increasing income tax credit,\u201d he said.<\/p>\n
Mr Varadkar added the Government plans to restore the carers\u2019 support grant, increase carers\u2019 allowance and disability allowance, and introduce a 12-week draw-down period after someone stops being a carer in order for them to adjust.<\/p>\n
Focus on supporting families will include proposals for two weeks\u2019 paid parental leave, a period that new parents can share between them.<\/p>\n
He added the Government\u2019s proposed pension reform will end \u201cone of the biggest economic inequalities in Ireland\u201d.<\/p>\n
According to Mr Varadkar, two thirds of people working in the private sector do not have a pension other than a state pension.<\/p>\n
\u201cWe\u2019re fundamentally changing that so that people will have a pension scheme, people will pay in, their employer will pay in, and the Government will pay in, too.<\/p>\n
\u201cPeople will be able to opt out, but in other countries people tend not to opt out once they\u2019re enrolled.\u201d<\/p>\n
He added that a further increase to the National Training Fund of more than 1% will bring another \u20ac50m in funding for higher education next year.<\/p>\n