Simon Harris (Wicklow, Fine Gael) | Oireachtas source

A significant change has been made and it is as much as we could afford on this occasion. The Minister has, however, indicated that he sees a change to the group A tax-free threshold in this year's budget as the start of a process. Provided, among other factors, that our economic recovery continues, and if the Minister remains the Minister for Finance, he intends to examine the scope for further improvements in the tax-free threshold in the future. The yields from capital acquisitions tax only represents 1% of overall tax revenues and generates about €400 million per annum. If that yield was not there, then obviously other taxes would have to be increased or expenditure reduced to fill the gap had we gone beyond what we did in this budget. Taxes on certain fixed capital are much less distortionary for economic activity than taxes on income and employment. However, I take the point made. Senators White and Mary Ann O'Brien referred to the revised CGT entrepreneurial relief and the issues around competition with the United Kingdom. The level of gains qualifying for relief under the UK scheme commenced at £1 million and was subsequently increased over time. We are setting out a similar roadmap here. The Minister did as much as the resources allowed him to do in this space.