Barry Cowen
Ceist:94. Deputy Barry Cowen asked the Minister for Finance for an update on the review of the personal tax system; and if he will make a statement on the matter. [30034/23]
Amharc ar fhreagraThursday, 22 June 2023
Ceisteanna (94)
Freagraí scríofa
As the largest annual source of revenue for the Exchequer, personal income taxes make a significant contribution to our public finances. It is desirable that the personal tax system should maintain the characteristics of stability and resilience in terms of its contribution to the total taxes collected by the State. The personal tax system also has an important role in supporting a competitive economy.
As signalled in Budget 2023, the Government is committed to a review of the personal tax system, having regard to the medium term. My Department has been tasked with carrying out this review. As the Deputy may be aware, on the 8th March, I launched a public consultation in respect of the review of the personal tax system, with the consultation period closing on the 5th April.
The terms of reference for the review were also published. In broad terms the review will encompass:
• A strong focus on the Programme for Government commitments relating to income tax and USC, such as indexation, and the progress made to date on achieving these commitments;
• Further analysis of the introduction of an intermediate or third rate of income tax, building on the work of last year’s Tax Strategy Group;
• Further analysis of the recommendations of the Commission on Taxation and Welfare directly relevant to income tax and USC; and
• An international comparative analysis of Ireland’s personal tax system compared to other jurisdictions.
My officials are currently progressing the review in line with the terms of reference. As this work is ongoing, I am not currently in a position to outline the specificities of the analysis to the Deputy. However, I look forward to receiving and considering the report in due course.