Cross-Border pay concession defended

GOVERNMENT sources have dismissed as nonsense any suggestions that Budget concessions to cross-Border workers were designed to…

GOVERNMENT sources have dismissed as nonsense any suggestions that Budget concessions to cross-Border workers were designed to woo voters in the forthcoming Donegal by-election.

The Minister for Finance yesterday explained that he would exempt the earnings of employees who work in the North but reside in the Republic from health and employment and training levies of 2.25 per cent.

Cross-Border workers are taxed in the State where they reside and the Minister was heavily lobbied during last year's Finance Bill to exempt them from paying these levies since they did not bestow any benefit on them.

Fianna Fail supported changes in this respect and the Minister said that, arising from the report of the Special inter-Departmental Committee which he had established, he proposed to remove their earnings in Northern Ireland from the levies.

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"For a person with yearly earnings of £15,000, the saving is £337.50 per annum", Mr Quinn added.