Index income tax credits and bands to earnings

What this means

• The Irish Government has committed to linking personal income tax credits and standard rate bands to earnings growth over its term in office.[source]
• This policy is led by the Department of Finance and was set out in the Programme for Government published on 23 January 2025.[source]
• The aim is to stop workers being pushed into higher tax brackets simply because their wages rise, a problem sometimes called fiscal drag.[source]
• The commitment is listed as in progress, meaning it has been announced but not yet fully delivered. No specific deadline has been set.[source]
• Taoiseach Simon Harris is the officeholder associated with this commitment, making him accountable for its delivery alongside the Department of Finance.[source]

Direct impact (3)

• delivery owned by body
  Department of FinanceBody
• delivery owned by officeholder
  Simon HarrisOfficeholder
• implements mandate
  Management of public finances and economic policyMandate

Indirect impact (8)

Two-hop relationships traced through the entity above. Useful for spotting downstream knock-on effects.

• delivery owned by body → owns statutory mandate2-hop via dept-finance
  Compliance with the fiscal responsibility frameworkMandate
• delivery owned by officeholder → holds role: Teachta Dála2-hop via simon-harris
  Dáil ÉireannBody
• delivery owned by officeholder → holds role: Tánaiste2-hop via simon-harris
  TánaisteBody
• delivery owned by body → holds role: Minister of State at the Department of Finance2-hop via dept-finance
  Robert TroyOfficeholder
• delivery owned by body → holds role: Secretary General, Department of Finance2-hop via dept-finance
  John HoganOfficeholder
• delivery owned by body → responsible for commitment2-hop via dept-finance
  Reduce the VAT rate to 9% for food-based hospitalityCommitment
• delivery owned by body → responsible for commitment2-hop via dept-finance
  Build up the Future Ireland and Infrastructure fundsCommitment
• delivery owned by officeholder → member of party2-hop via simon-harris
  Fine GaelParty