Vol. 474 No. 8
60 Mr. Callely asked the Minister for Finance the consideration, if any, he has given to reducing the higher rate of 48 per cent of income tax; if so, the likely higher rate over the next five years; and if he will make a statement on the matter. [4077/97]
All relevant tax reduction options, including the possible reduction of the 48 per cent income tax rate, were considered in the run-up to the 1997 budget. However, the Government decided that a more equitable distribution of tax reductions was achievable through a combination of increasing personal allowances, widening the standard band and reducing both the standard income tax rate and the main rate of employees' PRSI. It is not possible to forecast what changes may be made to the higher rate of income tax in future budgets. That will be a matter for decision by Government at the appropriate time.
