Dáil Éireann debate -
Tuesday, 23 May 2000

Vol. 519 No. 5

Written Answers. - Tax Code.

Michael Bell

Question:

83 Mr. Bell asked the Minister for Finance when, arising from the commitment given in the Programme for Prosperity and Fairness, the special working group will be established to examine the role that refundable tax credits can play in the tax and social welfare system; and if he will make a statement on the matter. [14271/00]

Minister for Finance (Mr. McCreevy):

I propose to take Questions Nos. 83 and 91 together.

The Deputy will be aware that the Programme for Prosperity and Fairness, section 1.1.5, states:

The social partners welcome the proposed completion of the move to a full tax credit system and regard the tax credit system as an effective and equitable way in which to deliver tax reductions. The social partners believe that the role, which refundable tax credits can play in the tax and welfare system, should be actively examined. They have agreed that a special working group, on the lines of the Tax Credit Working Group set up under Partnership 2000, should be established to carry out this examination. This examination will include the possibility of paying the Family Income Supplement (FIS) through the tax system. A progress report will be prepared by the end of 2000.

My Department is currently making arrangements to establish this working group and it is intended that the first meeting will take place in due course.