Larger package of tax measures in Budget than expected

The Budget will contain a larger package of tax measures than initially anticipated, with a €1.65 billion package that is €150 million more than projected due to additional measures to address the energy crisis. Finance Minister Simon Harris will announce that the income threshold for the higher 40% tax rate will rise from €46,000 to €46,500.

Personal, employee, and earned income tax credits will see an increase, effectively lowering earners' liabilities. Additionally, the minimum wage will be raised by 79 cents per hour to €14.94, while the point at which the 2% Universal Social Charge applies will also be adjusted. These changes would result in a €1,500 benefit for a couple earning €100,000 jointly, or €750 for a single earner making €50,000.

The Government plans to decrease the Carbon Tax rate for home heating oil and gas from 71 cents to 48 cents per tonne. The budget package remains under the allocated ceiling of €1.5 billion, except for energy cost reduction measures. The Budget will also include revenue-generating steps, such as extending the bank levy for another year, generating €200 million, and raising taxes on cigarettes and vaping products.

Social welfare rates will increase by €10 per week. Spending measures in the Budget will adhere to their €7 billion ceiling, a 6% increase following negotiations between Cabinet members and Public Expenditure Minister Jack Chambers.