Brian Cowen (Laois-Offaly, Fianna Fail)

The recent figures to which Deputy Burton refers were made known to her in my reply to her parliamentary question last month on this matter. There are many reasons a person would have a nil liability. This can arise from the cumulation of tax relief for pension contributions, trading losses carried forward, capital allowances and various tax incentives. It must be accepted that, of their nature, tax reliefs even where they can be justified for good public policy purposes, will reduce the tax bills of those in the higher income bracket.

I am conscious of the need to ensure equity in the tax system. This Government has reduced the tax burden on all taxpayers, especially the lower paid, on an unprecedented scale. Since 1998, we have also taken effective measures to limit and refocus tax reliefs to ensure a proper balance is struck between the provision of particular incentives for good public policy reasons and the availability of opportunities for higher earners to reduce their tax exposure. I will continue this policy. To that end, all reliefs and incentives must be kept under review to ensure they fulfil the purpose for which they were intended.

I refer the Deputy to the long-standing practice of Ministers for Finance not to comment on what may or may not be contained in upcoming budgets. I do not intend to depart from that approach.

See this speech in context