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Dáil Éireann díospóireacht -
Tuesday, 30 Sep 2003

Vol. 571 No. 1

Written Answers. - Tax Code.

Paul Nicholas Gogarty

Ceist:

209 Mr. Gogarty asked the Minister for Finance if the likelihood of lower indirect taxes will increase with the existence of a lower rate of inflation. [20944/03]

The rate of inflation, as measured by the consumer price index, CPI, has moderated significantly over the course of this year due largely to the combined effect of mortgage interest rate cuts, favourable exchange rate developments and easing services sector inflation. I anticipate that these factors will continue to have a positive effect on the CPI for the remainder of the year, although rising oil prices may exert some upward pressure on inflation over the next few months.

In the Economic Review and Outlook published in August my Department forecast that inflation would average 3.6% this year as compared to the figure of 4.8% published last December. All other things being equal, a lower inflation rate than forecast is likely to reduce the forecast yield from indirect taxation.

It is not customary for me to indicate in advance what tax changes will be made in the annual budget.

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