Vol. 478 No. 6
27 Mr. McCreevy asked the Minister for Finance the proposals, if any, he is considering for broadening the tax base as indicated on page 11 of his Department's statement of strategy; and if he will make a statement on the matter. [11622/97]
A key element in tax reform under successive Governments has been to broaden the tax base and to seek to redress the tendency for earned income to contribute an increasing share of total revenues. A number of allowances, reliefs and exemptions have been abolished, restricted or refocused across several tax heads. These measures have enabled tax rates to be reduced and the proportion of earned income taken in tax to be lessened.
There is further scope for widening the tax base and this is a matter which receives ongoing consideration each year prior to the budget by the tax strategy group. Apart from widening the scope of certain taxes, there is also the option of restricting or eliminating tax reliefs and allowances to make more resources available for tax reductions.
As the Deputy is aware, a number of reliefs have been restricted in this year's Finance Bill. I can assure the Deputy that proposals for further base broading will be considered by Government in the normal course in the run-up to the budget and announced in the budget, if agreed upon.
