asked the Minister for Finance if, in the next Finance Bill, he will adjust the thresholds for exemption under the wealth tax code in keeping with inflation rates, in accordance with the undertaking of his predecessor to do so.
Ceisteanna—Questions. Oral Answers. - Wealth Tax.
27.
I do not consider myself as being bound by undertakings made by my predecessor. However, I shall be looking at this subject as part of the review of capital taxes in general which I have already stated I am undertaking.
Arising out of the Minister's reply——
Arising out of the Minister's reply——
I am calling Deputy Belton who tabled the question.
In view of inflation and other things would the Minister not agree now to increase these thresholds? Will he agree, if he does not increase them, that will be tantamount to a reduction?
I have indicated today and on previous occasions that I am reviewing the operation of capital taxes in general and I specifically indicated one of the matters being reviewed is the effect of taxation on the incidence of inflation.
Surely the Minister will agree that of necessity, even if he were not to honour the commitment entered into by his predecessor, it is essential to increase these thresholds?
I have already indicated I am reviewing the whole position.
Would the Minister not say he will increase them?
The Deputy can wait for that.
Is the Minister aware that his predecessor gave an undertaking the thresholds would be reviewed after three years and, if we were still in power, that review would take place in the coming budget. Will the Minister honour his predecessor's undertaking in this regard?
Sir, I am tempted to develop this topic but I am sure you would not want me to do that. All I will say is that, as I have said already, I do not regard myself as bound by the undertakings given by my predecessor. If my predecessor had been really concerned in this regard he would not have done what he did in relation to these taxes.
Further arising out of the Minister's reply——
A final supplementary.
——I want to have it on record that I completely disagree with what the Minister has just said. It is most important that the thresholds are kept in line and will the Minister favourably consider increasing these thresholds in the coming budget.
That is the same question in slightly different phraseology.
I have stated I am reviewing these taxes, particularly from the point of view of their impact on inflation.