Tax reforms can ensure more earnings in people’s pockets – Callaghan

Reform of the tax thresholds would be a real help for workers and for businesses struggling to get staff to work overtime, particularly at peak times in certain sectors, a Fine Gael TD has said.

Deputy Catherine Callaghan said it is timely, in the upcoming Budget, to reform the thresholds for the higher rate of tax, so workers taking on extra hours are not losing out because of it.

She told the Dáil she recently visited a farm in Kilkenny, where labour shortages at peak times are hitting the business hard.

“It’s not that people don’t want to work the extra hours. It’s that once they do, the tax bracket eats the difference, and they end up with less money in their pocket not more.

“It isn’t just food producing or horticulture where an initiative like this would ease the strain on businesses, but it would also help in the manufacturing sector as well as hospitality

“This can be a real benefit to both employees and employers.

“If someone is willing to put in extra hours, they should feel it in their pocket. Fine Gael has always stood by and represented those who are working hard and providing for their families,” Deputy Callaghan said.

When she raised the issue in the Dáil, Minister for Enterprise, Trade and Tourism, Peter Burke said the Government needs to continue to incentivise work and Budget 2027 needs to make a big statement in regard to income tax.

Deputy Callaghan said, “Businesses like food producers need this certainty of labour before their next peak season and can’t wait years for it to be implemented.”