Bernard Durkan (Kildare North, Fine Gael)
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Question 94: To ask the Tánaiste and Minister for Finance if he has in mind tax based incentives to steady or revitalise the economy; and if he will make a statement on the matter. [15853/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Government's approach to taxation is set out in the Programme for Government and in recent Budgets and Finance Bills. In addition the Partnership Agreement, Towards 2016, states that the Government is committed to a taxation policy designed to maintain and strengthen the competitive position of the economy, foster improvements in productive capacity, economic and social development, and equity, while maintaining a sound fiscal stance. These commitments underpinned the tax changes which I announced in the Budget and which were given legislative effect in the Finance Act.

Following a major review of various property and area based tax incentives I announced in Budget 2006 that most of the existing reliefs either had achieved the objectives set out for them or were no longer considered to be cost effective in terms of the objectives set out for them and were being terminated subject to certain transitional provisions. The role that time-limited tax relief schemes can play in supporting public policy objectives is assessed continually in the formulation of tax policy in the context of the annual Budget process.