asked the Minister for Finance whether, further to a statement made by the Taoiseach on 21st February in Limerick, that the introduction of new forms of taxation may be necessary, he will now make a statement giving details of what particular new forms of taxation the Government have at present under consideration for introduction in the near future; and whether any decision has yet been reached as to the introduction of any specific new form.
Ceisteanna—Questions. Oral Answers. - New Forms of Taxation.
14.
Necessary increases in expenditure on public services such as agricultural aids, education, health, social welfare and the service of the public debt have created the need for increased revenue. Recent experience suggests that it will not be possible to meet this need simply by raising the rates of tax on the traditional revenue-earning commodities and that a new form of taxation will be necessary. Furthermore, it is clear that the Exchequer has become unduly dependent on taxing a small number of commodities, consumption of which is liable to be seriously affected by changes in demand.
The Government have, therefore, been considering the various forms of taxation in force in other countries on sales, purchases and services. While they have not reached a final decision, they are at present disposed to believe that a broadly-based sales tax would be most suitable. I expect to be in a position to go into detail in my Budget speech in April. I may say, however, that the Government would not intend to bring any new tax into effect until later in the coming financial year.