Sinn Féin's finance spokesperson Pearse Doherty has called for the banking levy to be increased to €400m in response to the profits of the banking sector as a result of rising interest rates.
This comes after Minister for Finance Jack Chambers announced plans to extend the bank levy as part of Budget 2025.
Mr Doherty said: "The profits made by the banking sector have soared solely as a result of rising interest rates as households have seen their mortgage costs spiral.
"As the banking sector continues to enjoy massive profits, even upgrading their profit forecasts, it is clear that the banking levy must be increased in this year's budget to €400 million.
"This revenue can be used to support households and mortgage holders with rising costs."
The levy was first introduced in 2014 and has been extended on a number of occasions over the past decade.
The bank levy is calculated based on eligible deposits at the four institutions that received State assistance during the banking crisis. They are AIB, EBS, PTSB and Bank of Ireland. This year alone it is set to raise around €200 million.
As work intensifies ahead of the Budget on 1 October, Minister Chambers has examined the levy closely with officials in the Department of Finance and will soon make a recommendation to Government to extend it.
This is based on the view that banks in Ireland are highly profitable and benefiting from a stable economic position.
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Therefore, the minister said, "it is entirely appropriate that banks continue to contribute back to the State."
Minister Chambers believes the return generated by the levy will give scope for a substantial income tax package along with options to further reduce the tax burden for families and workers in Budget 2025.
The minister said many people are still struggling with the cost of living and providing additional support is a key focus for the upcoming Budget.
"There will be further consideration on the exact make up and composition of the extension of the levy and this will be a decision for Cabinet as part of Budget 2025, but I will be very clear in my recommendation to Government colleagues to extend the levy again," Minister Chambers added.
Meanwhile, Mr Chambers said there is now consensus in Government that active farmers will not be included in any land hoarding tax.
The minister is drawing up proposals to achieve this amid a growing expectation that the tax it will form part of Budget 2025.
His proposals will be considered by the Government party leaders in the coming weeks.
Minister Chambers also said the extension of the bank levy would give the Government more scope to deliver a package for workers and families struggling with the cost of living.
