Indirect taxes to hit most vulnerable

Older & Bolder Director Patricia Conboy today said, “While I welcome the adjustment to the Universal Social Charge which will benefit people on lower income I am concerned about the effects of indirect taxes on less well off older people, charges like the increase in VAT, the introduction in the household charge, the increase in motor tax, the increase in petrol and diesel and the carbon tax hit those on limited fixed income hardest. Coupled with the measures announced in yesterday’s Budget, this places a heavy burden on a vulnerable group.”

Facts:

• The increase in VAT to 2% is regrettable as this will have a greater negative impact on the less well off. 
• The increase to household fuel, while it won’t come into effect until May 2012, when added to the announced reduction of the Fuel Allowance Season will negatively affect vulnerable older people·
• The introduction of annual household charge of €100 is regressive as it will hit all home owners the same regardless of their income.
• Older people who are dependent on a car to manage their health and social wellbeing will be very upset at the announced increase on petrol and diesel from 15 to 20%. The increase on motor tax and VRT will also make it harder for those on a tight budget to afford to retain a car for weekly and emergency use.