Written Answers. - Taxation Policy.

Liam Fitzgerald

Question:

54 Mr. L. Fitzgerald asked the Minister for Finance, in view of his recent statements which indicated as a priority the leaving of more money in taxpayers' pockets to spend as they wish, if this indicates that his strategy is to increase indirect-spending taxes and reduce direct income taxation. [15171/95]

It is the Government's policy to continue, within responsible budgetary parameters, the process of tax reform as an important element in overall strategy. The programme A Government of Renewal states that the Government will accelerate the reform of the tax system, in particular to reduce the tax and PRSI burden on those with low incomes and especially those with families. Significant improvements were made in this regard in the 1995 budget. Further progress will be made in the next two budgets. Funding for reductions in the income tax-PRSI burden can be provided through a number of means, including changes in indirect taxes and expenditure constraint. Final decisions can only, however, be taken in this regard in the context of the overall budgetary package.