Low Tax Regime

You earned €100 overtime and had €52 extra in your pay packet at the end of the week, after deduction of tax (42%) and PRSI (6%).

You had 2 pints (€8) with the lads after work on Friday. On the way home you stopped for petrol (€30) and bought a bottle of wine (€7.50) and 20 fags (€6.50) for the wife.

That's your €100 overtime fully accounted for.

Between PAYE, PRSI, VAT & excise duties the Government had taken almost €77** of it. Plus some small extra proportion of the other €23 by way of corporation tax on the profits of your pub and the garage. If you paid by Laser or Credit Card you'll have been screwed already by the Govt for €10 or €40 in annual stamp duty charges - probably both.

Lucky you live in a low-tax economy!

Footnote: Published as a letter in the Irish Independent and the Irish Examiner.

**Breakdown of above calculation:

PAYE/PRSI: €48 - PAYE @ 42%, PRSI & 6% of €100 Overtime

Beer: Govt take €2.32 of total sale price €8 (2 pints x €4)
Excise Duty €0.47 per pint + VAT @ 21%.

Petrol: Govt take €18.24 of total sale price of €30 (29.4 litres @ €1.02 per litre)
Excise Duty €0.44 per litre + VAT @ 21%.

Wine: Govt take €3.35 of total sale price of €7.50
Excise Duty €2.05 per bottle + VAT @ 21%

Cigarettes: Govt take €4.94 of total sale price of €6.50
Excise duty €3.81 per 20 pack + VAT @ 21%.

TOTAL Govt Take = €76.85