Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I will begin with charities. I am aware of this matter and a number of Members of the Houses have raised with me. I am examining whether such a measure could be implemented on budget day. I am not in a position to go into the detail of particular measures; it is just a case of whether I can introduce them. That is a matter I will address on the day of the budget. One of the issues I will be dealing with as we consider this option is how to define what constitutes a charity. If a measure is implemented, how can we ensure that it does not trigger many demands for equivalent organisations throughout society?

The Chairman asked about our tax base and the nature of our income tax code. We had a tax base that was very narrow by international standards. That is why measures such as the introduction of the local property tax then were important - I know that is the subject of a question. That is why we aimed at the time to introduce a water-charging system. The latter did not gain political support but it was driven by that objective. I am very conscious of maintaining the breadth of our tax base. We have one of the most progressive income tax systems in the world in that as people earn more money, they pay more money. On a number of occasions I have flagged that marginal tax rates begin to increase very quickly for those earning any more than a standard wage. That is a matter on which I believe this Government and the Dáil should make progress.

Given that a timeframe for the local property tax has already been laid down, I will be standing by it. As was made clear by the previous Minister, Deputy Noonan, following the publication of the Thornhill report, we will be looking at changes regarding that taxation - that tax base - from 2019. I will be sticking to that timeframe. Any announcements I make prior to that date will be about the process to get to that point. I am very conscious of the concerns, which have been articulated by others, including the Chairman, to the effect that there may be sudden large shifts in the tax bills people may face. As the Taoiseach has articulated, we will certainly take that into account in trying to avoid such a scenario. We will do that work in 2018 and bring it to conclusion at an appropriate point well in advance of 2019.