Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

I would have expected Sinn Féin to support the increase in all the capital taxes that we announced on budget day. It was not so long ago that capital taxes in these areas were 20%.

As a result of this Bill, it will be an increase from 30% to 33%. It is worth pointing out that in 2009, CGT was 20%. We then increased it to 22% and it went from there to 25% and then to 30%. It is now 33% in line with all the other capital taxes we announced in the budget. It is also worth pointing out that the estimated yield from this measure this year is ¤50 million.

Senator Cullinane asked about the Minister's position. I am always loath to give the Minister's position when he has yet to put through this year's budget, not to mention next year's one. However, all these issues will be kept under review. It is a fair and equitable argument that those who make money on the transaction of substantial holdings or on taxes should pay a little more and it is being done in a fair way. At the time of the budget, we pointed out that this was an example of those with more having to pay more. If we did not do this, we would be left in a situation where we would have to raise income tax. The firm view of the Government is that the best way to keep people at work and to create the environment where it pays to work is not to increase tax on work, so we have to look at other means of taxing. We have proposed these increases in the three areas of the capital taxes.

We will keep these matters under review. The net issue is always whether there is a guarantee that one will get more tax in by increasing tax. That is an ideological question which has been around since the time of Jesus Christ himself. The whole objective of increasing tax is to get more tax in, in particular in circumstances where there is a deficit. If one increases a tax to an exorbitant level, human nature being what it is, people will do strange things and will react in different ways. We will keep these matters under constant review but the basic argument behind the increase in CGT from 30% to 33% is to help us bridge a gap in the fairest and most equitable manner possible.