Richard Bruton (Dublin North Central, Fine Gael)

I move amendment No. 15:

In page 17, between lines 29 and 30, to insert the following:

14.—The Principal Act is amended in Section 779 by inserting the following new subsection:

"(3) A person, none of whose taxable income is chargeable at the higher rate, who makes a pension contribution within the limit set out in this section, shall be entitled to receive a tax credit contributed to the pension scheme equivalent to relief at the higher rate.".".

This amendment was discussed on Committee Stage. Its purpose is to provide that people on low incomes who are either paying no tax or paying tax at the 20% rate would be able to avail of pension tax relief on an equitable basis in order that they would be able to obtain the same relief as would be available to someone paying at the top rate. It is eminently reasonable and commands the support of all parties in the House, including Fianna Fáil. The Minister, Deputy Séamus Brennan, had suggested a more generous 50-50 scheme extending without limit.

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