Dáil Éireann debate -
Wednesday, 14 Mar 1990

Vol. 397 No. 1

Written Answers. - Standard Tax Rate.

Eric J. Byrne

Question:

58 Mr. Byrne asked the Minister for Finance if the speech made by him on 2 March 1990 in which he promised the introduction of a standard rate of tax at 25 per cent and a top rate of 48 per cent by 1993, represents Government policy; if any interim timetable has been set for the achievement of these levels; and if he will make a statement on the matter.

Minister for Finance (Mr. A. Reynolds)

I take it that the Deputy is referring to my address to the annual dinner of the Institute of Taxation on 2 March. What I said about income tax rates on that occasion was as follows:

In the past two Budgets it has been possible to reduce the standard rate — which affects the majority of taxpayers — by a total of 5 percentage points, so that it will be 30% for the coming tax year. This represents substantial relief and means that the Government are clearly on target to meet the objective of a 25% standard rate by 1993. The top rate of tax has also been reduced by 5 percentage points over the same period and a single top rate of 48% can be achieved by 1993.

As the Deputy will be aware, Government policy as set out in the Programme for Government is to further reduce the standard rate of income tax to 25 per cent by 1993 and move towards a single higher rate of tax. Substantial progress has already been made towards meeting these objectives and I am fully confident that they will be achieved. The process for their implementation will of course be a matter for consideration in the context of future budgets.