Thousands set for cut to income tax as Taoiseach lifts lid on Budget 2025

Taoiseach Simon Harris has given the strongest indication yet that thousands of workers across Ireland are set for income tax cuts in the upcoming Budget 2025.

He made the comment at the IBEC Presidential Dinner in the RDS on Thursday where he said the measures unveiled next month will contain "a significant income tax and USC reduction package."

Mr Harris pointed out that Ireland's employment levels have never been so high but told business leaders that the Budget would also benefit them with "changes to the tax system to encourage innovation and investment."

Budget 2025 will be the last before a General Election but experts, including the Irish Fiscal Advisory Council, have warned against a so-called giveaway budget which would lead to unnecessary pressure on the economy. 

He said that Ireland has "never had so many people working in our economy."

READ NEXT: Irish households hit with €1,000 in extra expenses ahead of Budget 2025

Tax cuts like those teased by Simon Harris would be in that mould but the Taoiseach said they "will benefit workers and households, and help to keep our tax system competitive."

He also pointed out that prices after not fallen for regular people despite the rate of inflation easing.

"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," he was quoted as saying at the event.

He added that "when money is plentiful, we have a duty to provide financial support," he added.

It's also thought that some form of energy credits which could see every household in Ireland availing of a number of free or reduced electricity and gas bills will also feature in Budget 2025.