Kieran O'Donnell (Limerick East, Fine Gael)

There are proportional scales in all the other tax areas. Regarding income tax, for example, there is marginal relief above a certain level of income. If the margin between the exemption limit and the amount of income is less than 40%, there is marginal relief. The same applies to PRSI where there is an exemption limit and people are taxed at 4% above that rate. Furthermore, the health contribution, unlike this levy, was for a specific purpose and people on an amount below €26,000 a year are exempt from it. The health levy was for health and the income levy was for youth employment.

The Minister should accept the reasonable proposals being made in these amendments as they are about providing relief at the lower end. They suggest relief on a scaled basis. It seems the Minister considers this levy an income tax, although he has called it a levy. If marginal relief is available for normal income tax, the Minister should consider the proposal I have put forward for some kind of marginal system at lower income levels.

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