A chara, - One of the worst features of the recent inequitable Budget which seems to have almost gone unnoticed was the increase in the rate of Direct Interest Retention Tax on special savings accounts from 15 per cent to 20 per cent.
In real terms this means an increase of 33 1/3 per cent in the clawback from the meagre amount of interest at present being earned by special account investors, many of whom are retired and elderly seeking the best return for their life's savings.
In view of the prevailing high buoyancy of revenue it appears that extra money, even from indirect taxes, was not necessary.
However, the Minister decided that the GAA was a deserving cause for a handout of £20 million over three years.
From the proposed increase in DIRT tax he expects to raise £6 million next year and £7.5 million in a full year. So in the next three years, on that basis, the yield would amount to £21 million.
This is another example of robbing the poor to pay the rich. - Is mise,
Padraig O'Faolain,
Belgrove Lawn, Dublin 20.