Joanna Tuffy (Labour)

I wish to raise the issue of tax reliefs. The chairman of the Revenue Commissioners was quoted recently as saying that in extreme cases exploiting legal tax loopholes is not very different from a guilty man walking free because of a legal technicality. Despite those remarks, the recent Finance Bill introduced a number of new tax shelters and reliefs which will benefit the very wealthy. The Minister for Finance, Deputy McCreevy, has done little to remove tax loopholes. For example, nothing has been done about reliefs for the bloodstock industry and numerous other reliefs in order to try to stop that type of tax avoidance. People who avail of these shelters are denying the country revenue which could be used to pay for public services, etc. Everyone suffers as a result.

Little has also been done in the past couple of years to remove more people from the higher income tax rate. I understand that more than half of taxpayers will be paying at the higher rate in 2004. An array of non-income related taxes have been introduced under the Government's policies. An obvious example, about which I feel strongly, is the waste charge county councils must pay. This charge shows up the difference in way people are treated. Ordinary people are treated in a totally different way when they do not pay their tax. The Government introduced a provision where if people do not pay their waste charges, councils can refuse to collect their rubbish. The people who are affected could be totally compliant as regards their income tax but they might be on low incomes or there could be many other reasons for their not having paid their waste charges. However, non-payment means that they are being denied an important service.

The type of people who avoid paying millions in income tax receive all their services and are able to settle with the Revenue if they are caught. In general, these individuals do not face jail. I do not support or agree with the kind of protests that have been mounted against waste charges. However, it is sickening to see those involved in these protests jailed while others who have effectively robbed the country of millions can travel abroad and enjoy themselves. Ordinary people are becoming extremely angry about this type of tax evasion and that is why they get annoyed about additional charges such as the bin tax.

The Government seems to have decided that it will take this route in order to obtain the additional taxes. It is not prepared to deal with tax evasion or close the loopholes which aid tax avoidance. It is determined to hammer those on middle and lower incomes for everything it can. The Government will probably come forward with proposals in the future to bring back third level fees. It charges fees for every type of service etc., which do not bear any relation to people's incomes but it will not properly pursue those who do not pay sufficient income tax.