Irish Commission on Taxation Released

August 28, 2009 Taxation in EUTaxation in Ireland  No comments

The Irish Government’s Commission on Taxation has released its report reviewing the Irish taxation system and its subsequent recommendations.

Today, the Commission on Taxation handed its report with over 250 recommendations regarding Ireland’s financial taxation system to Brian Lenihan, Minister of Finance. Due to errors in its indices, the 600 page report will not be made available to the public until early to mid-September. The report was originally requested to be complete on the 20th of September but has been completed ahead of the initial schedule.

Among others, the main recommendations include the introduction of water tax and increased carbon taxes. The Carbon tax has been penned as being more severe but still revenue neutral, the proposed water tax will take the form of a charge above a certain usage level. Property tax, which will come to roughly €600 to €800 per household, totalling an estimated €1 billion for the Government, has also been recommended. Corporate taxes are scheduled to remain the same. Vehicle Registration Taxes have also been recommended for removal, to be replaced with congestion charges and increased petrol taxes.

In total, the Commission on Taxation has recommended that the total tax intake for Ireland not change, as any increase will be balanced out by reliefs in other areas. The idea of not increasing total taxation has caused concern with Brendan Hayes, the vice president of Siptu and a member of the commission, who has refused to sign his name to the report out of protest.

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