Budget 2016 - Tax relief on union subscriptions to be reviewed
Congress says low pay changes in budget must be first step on road to Living Wage and decent work
by Niall Shanahan
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The Government announced in yesterday's Budget that a review of trade union subscriptions for tax purposes will be carried out next year.
Tax relief on union subscriptions was abolished by the previous Government and the relief has not been in place since the end of 2010.
Following lobbying by IMPACT, the Government has now committed to a review on the appropriate treatment for tax purposes of trade union subscriptions and professional body fees. The process, due to be carried out next year, will include a public consultation.
Congress says low pay changes in budget must be first step on road to Living Wage and decent work
Responding to the Budget yesterday (Tuesday 13th October), the Irish Congress of Trade Unions (ICTU) said that Budget 2016 included some positive measures that will see lower paid earners make measurable gains, with the rise in the minimum wage together with adjustments to the PRSI system and changes to the Universal Social Charge (USC).
Congress general secretary Patricia King said “We see the increase in the minimum wage as but a first step towards establishing the Living Wage and decent work across the economy. We also reiterate our call for a refundable tax credit, in this regard.
“Congress has campaigned over recent years to boost the living standards of very low earners and we acknowledge that the Budget has delivered progress on this.
“However, middle income earners appear to have benefited less and Congress had proposed a Universal Social Charge tax credit that would have ensured greater equity and fairness.
“It is also troubling to see that the high earning self-employed appear to have gained significantly in the budget, which now introduces a greater inequality into the tax system.”
Ms King said that the childcare measures outlined will offer improved provision and are a first step, “But the key issues facing the sector are high cost and low pay, combined with accessibility and capacity.”
Ms King said that the measures announced in relation to housing have the potential to help resolve the crisis, if realised and brought fully to fruition, but she said the issue of rent regulation needs to be addressed urgently.
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