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Jun, 2010

People who are not currently earning enough to pay income tax could find their situations changing shortly under the government’s latest initiative to broaden the tax base, according to the main news story in The Sunday Times.

Brian Lenihan, it says, is planning to bring minimum wage earners into the tax net in the December budget as an alternative to raising any additional taxes on those already paying tax. Currently, anyone earning less than €18,330 is not subject to income tax, although they do have to pay the 2% income levy.

One government official told the newspaper: “We must find another €3 billion in this year’s budget … officials are currently working out how much more revenue you would raise from and increased number being brought into the tax net, by broadening the base and looking at the bands”.

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