Tax bands for older people should be widened

My Budget/pensioner:A substantial increase in the State pension is the key issue that Albert Connor wants to see addressed in Wednesday's Budget. The increases over the past number of years have been welcome, but they started from a low base, he says.

"The Government has a lot of catching up to do in terms of the way costs have gone and the way incomes have gone," says the 82-year-old pensioner.

"I am a non-smoker and I don't drink very much, however I do drive and the cost of fuel and the cost of heating have gone up."

Indirect taxes and VAT have driven up the costs of goods and services and, while income taxes have come down over the years, he is annoyed by what he calls the "insidious" way indirect taxes have impacted on the cost of living.

The impact of the indirect taxes on older and lower-income people has not been addressed, he says. "VAT impacts much more on the lower income people than it does on anybody else," he says.

The tax bands for older people should be expanded by another 20-25 per cent, according to Mr Connor. "A non-contributory pensioner like myself would probably get € 11,000-12,000 a year," he says.

"The tax band starts at €16,000. You wouldn't have to have a very big occupational pension to get into the tax band. It's ridiculous that people of my age with lower incomes like this would be anywhere near going into the tax band."