Dáil debates

Tuesday, 7 March 2023

Ceisteanna Eile - Other Questions

Tax Code

11:15 pm

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein) | Oireachtas source

To clarify, will that occur regardless of the rate of inflation at that point in time? When the Minister selects 1 September for a tax rate to go up it is an appropriate time because the Dáil is in recess. The Dáil is in recess for a number of weeks before and after that date as well and that sometimes creates a little bit of pressure. Is the Minister saying the decision is permanent regardless of the inflationary environment? The last time it was restored it was also said that was permanent. I assume the Department did not support the extension, and that is fine. There must be political considerations and I agree a Minister should weigh up the advice and then make decisions, so I am not questioning that. However, the sector has put forward a strong argument that if we look at our competitors in Europe, outside Britain, our 13.5% rate probably makes us an outlier. What is the Minister's opinion on that debate? Some would argue it is not about an extension and that the right rate for the sector is 9%. I am not convinced at present, but I would like to hear the Department's view and the Minister's own on whether there is any merit to that argument, given countries other than Britain have rates well below 13.5%.

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