Sir, – The Minister for Finance has an opportunity to improve the return on savings by reducing the deposit interest retention tax (Dirt) in the upcoming budget.
I suggest a meaningful reduction to 15 per cent from the current 33 per cent. People have already paid income tax on their savings and are being taxed again for being prudent.
This would help elderly savers, who invested lump sums, expecting the interest to supplement their pensions, and also younger people who are saving deposits for houses. This would also encourage saving rather than spending, thereby helping to reduce inflation.
An alternative would be to exempt the first €500 earned in interest from this very unfair tax. – Yours, etc,
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PADDY REILLY,
Wilton,
Cork.