Liz McManus
Question:63 Ms. McManus asked the Minister for Finance if he will introduce legislation to ensure that tax relief be granted in respect of child care costs.
Written Answers. - Tax Relief for Child Care Costs.
The Government's income tax priorities are set out in the Programme for a Partnership Government. The achievement of these aims will result in further significant benefits to all taxpayers. A particular priority is to improve the position of the low-paid, especially families.
I have no plans to introduce income tax relief on payments made by working parents in respect of child care facilities. I would point out that an income tax relief would, of its nature, be of most benefit to taxpayers on higher incomes.
The focus of income tax changes in recent years has been on reducing the income tax burden for taxpayers generally and on making special provision for low-paid taxpayers through the tax exemption limits. As the Deputy will be aware, substantial progress has been made in these areas: the standard rate of income tax has been reduced to 27 per cent and the top rate to 48 per cent, the standard rate band has been widened by more than 60 per cent, there have been substantial increases in the exemption limits and a child addition to those limits was introduced which was further increased this year. Lower-paid taxpayers with children have had their position significantly improved by these measures irrespective of the manner in which the family income arose. The 1993 budget proposals again gave them priority.