Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Minister for his reply. Can he clarify that, in terms of taxation, he has a potential envelope of up to €750 million? Is that the quantum of net new measures on the taxation side? Obviously it is open to the Minister to increase taxation in certain areas and he has made some comments in that direction. Therefore, is he talking about net new tax measures of up to €750 million? Will that then be reduced by the €300 million to €340 million of carry-forward measures or is this already taken into account in the context of the €750 million? I think the Minister confirmed in reply to a parliamentary question that the figure of 1.2% to 1.5% - so, in effect, the €750 million on the tax side - is the first-year effect. Of course, the subsequent year effect is greater. Perhaps €750 million in the first year could be a tax package of €1 billion in terms of a full tax year.

If the Minister could clarify those matters, it would be really helpful. We all recall that, last year, questions to the Minister for Finance were taken less than two weeks prior to the introduction of the budget and that the latter was expected to be neutral. Then, however, it an expansionary budget of €1 billion was brought forward. Can the Minister please tell us, therefore, what exactly are the answers to those questions?

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