Mary Coughlan
Question:88 Miss Coughlan asked the Minister for Finance the consideration, if any, he will give to reinstating 100 per cent deduction for capital allowances and expenditure; and if he will make a statement on the matter. [5112/96]
Written Answers. - Capital Allowances and Expenditure Deductions.
It is assumed that the Deputy is referring to the reintroduction of 100 per cent accelerated capital allowances in the first year. I do not intend to reintroduce accelerated capital allowances on a general basis as mentioned in the Deputy's question. Such a step would go against the thrust of the corporation and income tax reforms which have been achieved in recent years and, as accelerated allowances are very costly to the Exchequer, their reintroduction might well have to be financed by increasing the tax burden in other respects. This could have implications for our ability to reduce tax rates further and, as such, would be an unwelcome development from the point of view of business generally.