Finance Minister Brian Lenihan has said the Government is planning to bring amendments to the Finance Bill relating to the universal social charge.
The proposal is to introduce a lower rate for those holding a medical card who are subject to the 7% rate. These will now see their rate lowered to 4%.
But self-employed people earning more than €100,000 will pay an extra 3% surcharge on any incomes above that amount. The Minister said this would mean such people would be back at the levels they were before the Budget.
The charge, introduced in the Budget, amalgamated the health and income levies. It had three rates - 2%, 4% and 7%.
Minister Lenihan said the change would apply for the lifetime of the four-year plan.
The cost of putting medical card holders on the lower rate of the charge would be €80m, according to the Minister. This is to be made up by the surcharge on the self-employed.
The Dáil debate on the Bill started this afternoon. The Minister for Finance told TDs that any uncertainty or failure to have the Bill enacted would be damaging to Ireland internationally. He said such uncertainty could jeopardise the EU/IMF deal.
The Fine Gael finance spokesman Michael Noonan said the Finance Bill contained no proposals to stimulate economic growth and did not address concerns of the most vulnerable in society. He described the legislation as the last act of a crippled government.
Labour's finance spokesperson re-iterated her party's opposition to the Finance Bill, saying its weakness is the inherent imbalance and unfairness at its heart. Deputy Joan Burton also said the provisions of the universal social charge were blatantly unfair, adding that the changes to medical card holders were 'a small concession'.
Watch the debate live here
