Tax

Abolishing USC would ‘endanger public finances’, Taoiseach says

Leo Varadkar said his party’s commitment to abolish the USC in the 2016 general election was ‘quite some time ago’

Taoiseach Leo Varadkar: “The USC brings in €5.3 billion a year. Notwithstanding the surplus that we have, a tax package of that size and that nature wouldn't be appropriate, would fuel inflation and would endanger the public finances into the future.” Picture: Fergal Phillips

Taoiseach Leo Varadkar has ruled out abolishing the Universal Social Charge in the budget on the grounds that it would “endanger the public finances.”

The Universal Social Charge (USC) has become a core part of the state’s taxation system since it was introduced during the Trokia bailout programme in 2011, bringing in €5.3 billion in revenue per year.

Fine Gael promised to abolish the USC in the 2016 general election campaign, but dropped this pledge ...