Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

-----but those who own the most valuable properties will pay the most.

Income Tax

The Government continues to implement the programme for Government commitments of maintaining the current rates of income tax together with bands and credits and not increasing the top marginal rates of taxes on income.

Ireland's income tax system is one of the most progressive income tax systems in the world and is the most progressive in the EU. Those who earn the most pay by far the most in tax.

I would encourage Deputies to look at annexe F of the budget documentation, which illustrates the distributional impact of recent budgets.

The Government is firmly committed to this progressive system, as it illustrates the fairness of our tax code. This level of progressivity in the tax system and the record levels of foreign direct investment show that we are striking the right balance between our income tax levels and incentivising investment and job creation in Ireland. The more jobs that are created, the wider our tax base will be for the provision of public services.

I see greater fairness of the tax system as reducing the number and amount of reliefs that can be availed of by income earners to shelter their income from tax. Already, the ability of certain wealthy people to reduce their income tax liability to very low levels through judicious use of tax incentives has been restricted. The introduction of the high earners restriction has been successful in generating additional tax revenue. In 2010, the most recent year for which the Revenue Commissioners have figures, €80 million of additional revenue was secured from 1,544 individuals.

In addition, I am announcing that, from 1 July 2013, maternity benefit will be harmonised with other social welfare benefits in respect of its tax treatment. As is the case with all social welfare payments, maternity benefit will continue to be exempt from the universal social charge.

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