McGrath to seek clarity on taxing of pensions in excess of €60,000
FF finance spokesman: favourable treatment for public servants could not be justified
Michael McGrath: received assurances from the Minister for Finance that restrictions on tax relief on contributions to large pension pots would apply equally to public and private sectors. Photograph: Gareth Chaney/Collins
Fianna Fáil finance spokesman Michael McGrath is to seek clarity in the Dáil on the budget provision relating to the taxing of pensions.
This follows claims that the tax of 70 per cent on pensions over €60,000 will not apply to judges, politicians and senior civil servants.
Mr McGrath said yesterday he had received assurances from Minister for Finance Michael Noonan on budget day that the restriction on tax relief on contributions to large pension pots would apply equally to the public and private sector.
“It now seems that this is not the case and favourable treatment is proposed for some of the highest paid public servants in the country. I believe it is important that any changes would be evenly applied and that no category . . . should be singled out for special treatment.”
Mr Noonan, in his budget speech earlier this month, did not elaborate on the provision’s detail and if some public servants would be exempted.
“In line with the commitment I made in budget 2013 to restrict the subsidisation by taxpayers of pensions that deliver income up to €60,000 per annum, I am reducing the Standard Fund Threshold from €2.3 million to €2 million from the 1st of January 2014,” he said.