Dr. Thomas Conefrey:

In general, as part of our mandate, we do not recommend specific tax measures. That is ultimately a choice for the Oireachtas. In some analytical work we published with the latest quarterly bulletin, we pointed to some characteristics of the current income tax and VAT base. One of the largest broadening measures introduced in the income tax area in the past 30 years was the universal social charge, but we have seen a narrowing of that base over the past five years, in particular. People have been taken out of the net, so we have seen a narrowing in that area.

On the VAT side, we compared the proportion of total revenue collected through VAT in Ireland with that of some other countries, very much drawing on an analysis produced by the Commission on Taxation and Welfare. What comes out of that work is that the VAT base in Ireland also appears narrow by international standards.