asked the Minister for Finance if he accepts the DIRT tax will be operational under EC rules after 1992; if he has any plans to phase out this tax; and if he will make a statement on the matter.
Written Answers. - Deposit Interest Retention Tax.
68.
There are no proposals at EC level under which deposit interest retention tax will be unable to operate after 1992. As I have recently pointed out, however, the liberalisation of capital movements may cause some difficulties: a relatively high rate of retention tax could provide an incentive for people to open deposit accounts abroad after 1992 when exchange controls have been fully removed. The implications of capital liberalisation for taxation of savings are still under consideration at Community level. I would draw the Deputy's attention also to the fact that the Government are committed to further reducing the standard rate of income tax, to 25 per cent by 1993, and that the deposit interest retention tax rate will be reduced in line with that reduction.