Dáil Éireann debate -
Thursday, 25 Jul 1996

Vol. 468 No. 4

Written Answers. - Personal Taxation.

Martin Cullen

Question:

120 Mr. Cullen asked the Minister for Finance his views on whether the level of personal taxation is too high in Ireland and is having a negative impact on employment; and, if so, the plans, if any, he has to rectify the situation. [15947/96]

Minister for Finance (Mr. Quinn)

The tax burden of people in employment is of particular concern to the Government. Consequently in my two budgets I have focused relief towards lowering the tax burden, particularly of those in lower paid employment. This has been achieved through significant improvements in the income tax and PRSI areas. Such measures included increasing exemption limits and personal allowance, widening the standard rate tax bands and introducing a new weekly PRSI-free allowance which currently stands at £80 per week for full rate PRSI contributors.

Clearly, however, further progress is needed in reducing the tax and PRSI burden thereby improving the competitiveness and employment potential of the economy. I propose, within responsible budgetary parameters, to make further progress in this regard in the 1997 budget.