Taoiseach and Finance Minister 'absolutely aligned' on tax cuts, says Paschal Donohoe
The Finance Minister says he is "absolutely aligned" with the Taoiseach when it comes to tax changes in the upcoming budget.
It comes after Leo Varadkar suggested some income tax cuts in the Budget, just weeks after Paschal Donohoe appeared to strongly rule this out over Brexit concerns.
Mr Donohoe also confirmed that supports to help the tourism sector in the case of a no-deal Brexit will be included in Budget 2020.
He ruled out a supplementary Budget early next year, which the ERSI this week suggested may be necessary if Britain crashes out of the EU.
Responding to the Taoiseach's comments, Mr Donohoe said: "The Toaiseach and I are absolutely aligned on what we're going to be delivering in budget 2020. The Taoiseach outlined that we need to be so careful that we don't put in place measures that ultimately prove unaffordable."
He added that the Government cannot put in place a tax reduction that might be affordable in October, but might turn out to be unaffordable In March.
"I've seen that cycle before within our economy and our society and we're not going to do that again. The Taoiseach was very clear in ruling that out."
Speaking in Dublin's north inner city, Mr Donohoe added that any changes to personal tax will be "minimal" and they would have to be "affordable".
Asked about measures to help the tourism industry, which has already seen a drop in numbers coming here from Britain, Mr Donohoe said he will outline supports for various sectors on Budget day.
"Those supports will take cognisance of the tourism sector, if we do end up with a no deal happening. I'm a former Minister for Tourism, I think Irish tourism is incredibly diversified and imaginative. I think they do a great job We are looking at a decline though, which is against the record year, which in turn was against another record year. So it is entirely possible that we are may be seeing the leveling off to more sustainable long-term tourism performance that the country can deliver.
"But, that being said, if a no deal Brexit happens, the kind of change that could happen in the British economy, I do appreciate that that would have an immediate impact in the short-haul travel business into Ireland from the UK. And that's something that we're trying to take account of," he said.
