Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

The Deputy said the Government takes taxes but we do not take them. The Government provides services to the people of Ireland through raising revenue and spending it. We need a tax base to fund education, housing, health, childcare services and child protection services and the development of transport infrastructure. We need revenue to do those things. Every stable democracy needs a stable revenue base.

Across the European Union, a broad VAT directive sets out the bands for the various VAT rates that can be deployed and so forth. We have to work within those parameters and we willingly signed up to that. It places limits on how far VAT can be reduced as we adhere to the rates on which we entered into agreement. We have reduced VAT on gas and electricity. We have also reduced excise in the amount of €2.4 million as a result of measures we have taken.

I understand that Malta has one of the highest levels of borrowing of the EU 27. It stood at 11% of GDP in 2021. We also have debt levels. The idea that €6 billion of tax revenue can be eliminated in simply not a runner. It cannot be done anyway, but it is not a runner if the proposal is thought through. The Deputy looks at this issue through a one-dimensional lens. He has not looked at the other side of the matter, namely, the allocation of that funding. For example, €4 billion per year has been allocated for the building of social and affordable housing and for cost-rental accommodation. There must be a revenue base to allow for that and, thankfully, we have a diverse revenue base. The more important point is that in the context of the next budget, we will be in a position to do things that can alleviate the pressure on people, families and, in particular, children. We have already allocated substantial resources since the most recent budget to alleviate those pressures across the board. I have gone through the list of measures we have taken in respect of transport costs and so on. There have also been schemes for hauliers, tillage and hospitality.

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