BUDGET 2025 WILL contain a “significant income tax and USC reduction package”, one-off payments and further USC changes for the self-employed. 

Speaking at the Ibec president’s dinner this evening in Dublin, he said as part of a €1.4 billion tax package, the budget will will benefit workers and households, and help to keep Ireland’s tax system competitive.

“Simply put, I and my party believe that nobody on the average wage should be paying the higher rate of income tax. As a country we have worked hard to reach full employment, and we want to ensure we make work pay. This will always be a guiding principle for us,” said Harris.

The budget, which will be announced on 1 October, will contain a pro-business package, including changes to the tax system to encourage innovation and investment, said the Taoiseach.

“I want to also say the abolition of the USC surcharge on self-employed income is unfinished business that we are determined must be delivered.

“It’s a perverse state of affairs that those who risk the most are penalised the most. The opposite should be the case. This is a vestige of austerity and it must go. We need to reward entrepreneurship, not penalise it, and our manifesto will make this clear,” he added. 

Speaking about Ibec’s pre-budget submission calling for ‘Better Regulation Unit’ to monitor new costs and regulation, Harris said there is a need to create a fail-safe in the system that “moderates the cumulative effects of well-intentioned regulations or laws from damaging businesses”.

Harris said he plans to bring a memo to Cabinet next week to establish a new Better Regulation Initiative to work with industry to advance work on this quickly.

He told attendees this evening that he has a differing view than Ibec on the question of one-off payments, stating that many people are still struggling with the cost of living.

“Yes, inflation has moderated, but prices have not fallen. When money is plentiful, we have a duty to provide financial support when it is needed,” he said.