Eric J. Byrne
Question:61 Mr. Byrne asked the Minister for Finance if any time frame has been set for the achievement of the tax proposals contained in the Review of the Programme for Government; and if he will make a statement on the matter.
Written Answers. - Review of Programme for Government.
I take it that the Deputy is referring to the income tax objectives set out in last October's Review of the Programme for Government. The review states the Government's firm intention to endeavour to achieve the objectives of a standard income tax rate of 25 per cent with a single higher rate of 44 per cent in the 1992 and 1993 budgets; it also states the Government's objective in the course of these budgets to begin working towards a considerable widening of the standard income tax band and increasing the basic personal allowances. This reform programme is, the review states, to be implemented progressively from the proceeds of a parallel radical overhaul of the entire tax code and will be carried out on the basis of no net cost to the Exchequer.
As the Deputy will be aware, considerable progress was made towards these objectives in the 1992 budget. The standard tax rate was reduced from 29 per cent to 27 per cent and the top rate from 52 per cent to 48 per cent, so that there are now just two tax rates, 27 per cent and 48 per cent. In addition, the standard rate tax band was extended by £775 for a single person and £1,550 for a married couple. This major package of improvements was made possible by a range of base-broadening measures in income tax and other taxes.