Written answers

Thursday, 25 September 2008

5:00 pm

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 30: To ask the Minister for Finance if he will provide a commitment that any proposal to introduce a carbon tax in Budget 2009 will include measures to ensure that the burden does not fall disproportionately on those on lower incomes; and if he will make a statement on the matter. [31328/08]

Photo of Michael D'ArcyMichael D'Arcy (Wexford, Fine Gael)
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Question 34: To ask the Minister for Finance the contact he has had with the Commission on Taxation regarding the introduction of a carbon tax; if he expects the appropriate legislation to be introduced in 2008; and if he will make a statement on the matter. [31477/08]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 30 and 34 together.

I have stated previously that the carbon tax issue is being examined by the Commission on Taxation and the Commission is due to report by September 2009 at the latest.

With regard to Budget 2009, as the Deputies will be aware it is not the usual practice for the Minister for Finance to speculate in advance of the annual Budget on what it will contain and I do not propose to deviate from this practice now.

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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Question 31: To ask the Minister for Finance if he foresees any threat to the Irish corporation tax regime; and his plans to mitigate the possible effects. [31479/08]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I want to assure the House that the Government's position on our corporate tax regime is unambiguous. It is clearly stated in the Programme for Government that the 121⁄2 per cent rate of corporation tax will remain.

Although the Deputy does not specify what threats to the Irish corporate tax regime he has in mind, he may be referring to the European Commission's technical work on a common consolidated corporate tax base (CCCTB).

It is important to note that there has been no political decision taken on the CCCTB at the level of the Council of Ministers and the Commission has not brought forward a proposal to Council. The Commission is currently undertaking an economic impact assessment of a CCCTB and I presume that no proposal would be brought forward until that assessment has been considered.

The Irish position on the CCCTB is well known and I will continue to highlight the difficulties I believe such a proposal could cause for individual Member States and overall EU competitiveness.

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