Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The amendment seeks a report on the establishment of a wealth tax commission to be provided within six months of the passing of the Bill into law. As Deputy Doherty is aware, wealth can be taxed in a variety of ways, many of which are already levied here in Ireland. These include capital gains tax and capital acquisitions tax, which are, in effect, taxes on wealth in that they are paid by an individual or company on the disposal of an asset or the acquisition of an asset through gift or inheritance. There is deposit interest retention tax, which is currently charged at 33%, with limited exemptions, on interest earned on deposit accounts. We should not forget the local property tax, which is a tax based on the market value of residential properties. There is also stamp duty, which is charged on the transfer of shares, stocks and marketable securities of Irish-registered companies as well as on the purchase of property both residential and non-residential. It follows that any revenue raised from a wealth tax, no matter what form it takes, may not be additional to the existing forms of wealth taxation, as revenues from those taxes could be affected by the introduction of a wealth tax.

On the issue of household wealth, in September 2020, the Central Bank published a report, Household wealth: what is it, who has it, and why it matters. It presents the results from the household finance and consumption survey, HFCS, which collects data on households' financial positions. That survey was undertaken before the Covid-19 period but, in time, it will provide a starting point against which to benchmark the impact of the pandemic on household finance positions and consumption patterns. It reports that the survey data indicate an improved financial position and resilience for households prior to the Covid-19 crisis when compared with the situation leading into 2008.

In examining the topic, the Commission on Taxation and Welfare, which reported in 2022, identified challenges that would impede the implementation of such a tax. It concluded that a new tax on net wealth should not be introduced without first attempting substantially to amend Ireland's existing taxes on capital and wealth. As an alternative to introducing a new tax on wealth, the commission believes the more productive route is to re-examine CGT and capital acquisitions tax. These are existing taxes on wealth that have well-established but distinct bases and are well understood in their operation.

In addition to wealth taxes, the Government takes action against inequality through our tax and welfare system. For instance, the strong redistributive role of the Irish tax and welfare system is evident in the range of supports that were introduced to help mitigate the impact of the Covid-19 pandemic and in the series of measures designed to limit the impact of the current cost-of-living pressures. Ireland has one of the most progressive systems of taxes and social transfers of any EU or OECD country, which contributes to the redistribution of income and the reduction of income inequality.

I assure the Deputy that all taxes and potential taxation options are kept under constant consideration and it remains a priority of mine to ensure Ireland maintains its progressive taxation system. I do not see any additional benefit that might be gained from a commission of the type mooted in his proposal. Therefore, I cannot accept the amendment.