asked the Minister for Finance if he or his predecessor conducted a review of the deposit interest retention tax as promised in the 1987 Fianna Fáil Election Manifesto; and, if so, the result.
Written Answers. - Review of DIRT.
70.
The operation of the deposit interest retention tax has been kept under review. No change has been found necessary in its operation except for the introduction of a provision — Section 7 — in the Finance Act, 1987, to counter arrangements introduced by certain financial institutions which would otherwise have resulted in less than a full year's yield being obtained from the tax in 1987. As the Deputy will be aware, the rate at which the tax applies was reduced to 32 per cent in line with the reduction of the standard rate of income tax which I announced in this year's budget; further reductions will be made in line with the Government's commitment to further reduce the standard rate of income tax to 25 per cent by 1993.