The Minister for Finance, Brian Lenihan, has indicated that the income levies, which he introduced in October and doubled yesterday, will become permanent.
On RTÉ Radio's Today with Pat Kenny, Mr Lenihan said the levies would be fully integrated into the PAYE system in next December's budget.
During the show, he fielded questions from callers and issued an upbeat assessment of the impact which his Budget would have on the country's finances.
Meanwhile, the Dáil is continuing to debate the Emergency Budget after the Government had comfortable majorities in a series of votes on its financial measures last night.
Taoiseach Brian Cowen defended the establishment of the National Assets Management Agency announced in yesterday's Budget.
Mr Cowen said the Government had to step in and isolate the problems associated with toxic assets before they infected the rest of the economy.
He said the agency would be established on a statutory basis and a levy would be applied to any shortfall in repayments.
The Taoiseach said Ireland had suffered a blow to its reputation internationally which must be repaired, but that the scope of the problems had been over-exaggerated.
He said we must communicate with the markets internationally to secure confidence and get investment flowing.
Fine Gael leader Enda Kenny said the Budget had dashed the hopes of thousands of Irish families. He said there was nothing in it for jobs or businesses.
He accused the Government of ignoring the public finances. He said there was little point in sending teams abroad to explain that we were getting things on track when that was not the case. He said it was a book-keepers' Budget.
Labour leader Eamon Gilmore said the Budget will delay recovery and drive more people onto the dole. He also said it did little for job creation and 'screws' middle income families.
Fine Gael Deputy Spokesman on Finance Kieran O'Donnell said the Government was trying to tax its way out of the recession and said the taxpayer must know exactly how much money will be needed to takeover the bad debts from the banks.
Last night, TDs approved an immediate increase of 25 cent in tax on a packet of 20 cigarettes and five cents on a litre of diesel, as well as the doubling of income levies, the restriction of mortgage income relief, changes to capital gains and capital acquisitions tax, increased levies on life assurance and increased DIRT tax.
Pay packets will be hit from next month by the higher income levies, as well as by the health levy, which is also doubled.
Last night, Mr Cowen accepted that the Budget was painful. He said, however, that it was fair given the circumstances we were now in.
