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

I will agree on the basis that the tax strategy group will be asked specifically to examine this issue. What the Minister is indicating is that there has not been a policy decision for DIRT tax to fall to 33%, while the exit tax would remains at 41%. The first point I want to establish is that this is not Government policy as that would be a retrograde step. Many people rely on the products which are subject to the exit tax. There is also the additional 1% tax to be paid. Having spoken to many financial advisers and brokers about the issue, they make the point that many people, especially older people, rely on life assurance policies. Having a higher rate of tax for no particular reason is not the way to go. The measure will be implemented, but I would like it to be reviewed. I welcome the commitment the Minister has given and also the acknowledgment that this will not be a permanent feature, given the differential emerging between the exit tax and DIRT tax rates.

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