No decision yet on carbon tax
Special tax incentives for gym membership are unlikely to form part of Budget 2027, despite previous promises and strong lobbying by Fianna Fáil TDs.
Sources have played down the prospect of a tax credit for gym membership which was first promised by Jack Chambers when he was finance minister in Budget 2025.
Negotiations before October’s Budget are intensifying and entering “the final stages”, according to Tánaiste Simon Harris.
On Monday, he will signal a package to support business by cutting costs and taxes.
The Finance Minister will tell the Mullingar Chamber of Commerce that the Budget will support those who “get up early every morning and go to work” who “should feel the benefit of doing so”.
He will say that “strong towns, strong communities and a strong country depend on people who are prepared to work hard in order to get ahead”.
He will also tell business owners that one of the priorities for the Budget will be “cutting business taxes and cutting income taxes”.
There will be a business package that will “make progress on reducing your cost base. Increasing your ability to make ends meet, and increase our competitiveness”.
It comes amid pressure from business lobby group Ibec over anticipated rises in the minimum hourly wage.
An increase of 79c is expected to be signed off by the Government in the Budget, with Ibec writing to Business Minister Peter Burke in the summer, expressing concern over its impact.
Separately, Public Expenditure Minister Jack Chambers, has said no decision has been made yet on whether to postpone the planned carbon tax increase. The rise of €71 per tonne was postponed last April and was due to come into effect on October 14.
While another deferral is under discussion, Mr Chambers told This Week on RTÉ Radio 1 that while he is “very conscious” of the impact of energy prices on families across the country, “we are considering that in the round”.
He added: “There’s been no decision made on this, except to say that we’re conscious, agile and responsive to the pressure that families are under.”
He said further delays could impact other spending plans because “we ring-fence what it brings in for spending on retrofitting, on measures around fuel poverty, and also on the acres and agri-environment scheme”.
Meanwhile, there is little expectation of any tax incentives for gym membership – despite this being outlined as a budget request by many Fianna Fáil backbenchers.
In Budget 2025, Mr Chambers strongly hinted at the incentive to support the health and mental well-being of citizens.
He said: “I believe there is merit in examining how the tax system can help achieve greater participation in sport and fitness activities, including through gyms.
“Over the course of the next year, my officials will continue this work with a view to developing proposals for consideration in advance of next year’s budget.”
The Tax Strategy Group has previously poured cold water on the proposal, suggesting that financially incentivising gym membership would not necessarily result in people using the gym more.