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Dáil Éireann debate -
Thursday, 10 Apr 1986

Vol. 365 No. 3

Ceisteanna—Questions. Oral Answers. - EC Income Tax Rates.

24.

asked the Minister for Finance if he will indicate the top rate of income tax in each member state of the EC and the equivalent Irish income level at which such rate is levied.

It is not possible in the short time available to supply the information requested by the Deputy. If he repeats his question in one week's time, I shall endeavour to supply the information on the lines indicated in his question.

The Minister has acknowledged that it may not be possible to get all the information because the statistics are difficult to come by in the EC. Will he acknowledge nonetheless, that we in Ireland have the highest level of personal income tax applying at the lowest level of income anywhere in the EC? Is this not something that this Government must reverse in view of the fact that we have the lowest per capita income for disposable income with the exception of Spain in the EC?

A Deputy

Spain is high.

Sorry, Portugal in this instance. Will the Minister not acknowledge that it is time, in view of that, that the Government reversed their policy decisions and lowered our tax levels to something in line with the rest of our colleagues in the EC?

Government policy is to reduce the tax burden, and I have indicated that in this years's budget we are making provision for a reduction of the income tax burden. Our policy is to continue with that and I hope that we will be able to make considerable progress over the next number of years in that.

There is great scope for progress, as the Minister will acknowledge, due to the fact that we have the highest income tax levels of the EC.

The Deputy is speaking about what we should speak about next week.

I have asked the Minister if he will indicate the top rate for income tax in each of these member states.

He will in time. Some of them are so obvious that I am asking the Minister if, in view of what they will disclose, he will ensure that the actions he has taken so far will be much improved on. The minimal actions taken so far will go nowhere to reducing our levels of income tax to a comparable EC rate.

First of all the Deputy was complaining that we were doing too much borrowing. Now he is complaining that taxation is too high. In a few minutes he will be saying that expenditure is not high enough.

(Interruptions.)

Depending on what they do with the money.

Minister and Deputies, let us hold our fire for the Finance Bill.

Our aim is to lift the income tax burden and that can be discussed during the Finance Bill debate.

(Interruptions.)

Let me suggest to the Minister, in case it is said that we do not make suggestions as to where he can reduce public expenditure, that he abolish the Combat Poverty Agency and the NDC. Will he save money on the Department of Labour and put it to productive purposes?

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