Breeda Moynihan-Cronin
Question:59 Mrs. B. Moynihan-Cronin asked the Minister for Finance if he proposes a standard rate of non-discretionary tax-free allowances; and if he will make a statement on the matter. [13707/98]
Written Answers. - Tax Allowances.
I referred, in my budget speech of last December, to the fact that a number of proposals had been made in pre-budget submissions to standard rate some or all income tax allowances and reliefs and to convert these into tax credits at the standard rate. I also said that the Government is open to considering a move to standard rating and tax credits provided that all the complex issues involved can be fully teased out and the system can be introduced into the tax code in a manageable way.
A special working group was established under Partnership 2000 to examine this issue. The group prepared an interim report which was discussed at a P2000 plenary session earlier this year. Following the discussions at that meeting, the issue of standard rating and tax credits is to be further examined in the run up to the next budget.