Terence Flanagan (Dublin North East, Independent)
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105. To ask the Minister for Finance his views on the IMF remarks regarding broadening further the tax base; and if he will make a statement on the matter. [55013/13]

Michael Noonan (Limerick City, Fine Gael)
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I can advise the Deputy that there has been an ongoing and significant emphasis on base broadening through the abolition or curtailment of tax reliefs such as those relating to property investment and interest relief as well as increases in minimum tax rates for high earners. Indeed the Letter of Intent dated 29th November which was jointly sent by me and by Governor Honohan to Christine Lagarde, Managing Director of the IMF, Mario Draghi, President of the ECB, Jeroen Dijsselbloem, President of the EuroGroup, Olli Rehn, Commissioner for Economic and Monetary Affairs, and Rimantas ŠadŽius President of the EcoFin Council, refers specifically to such measures.

In addition to the curtailment of tax reliefs which are generally availed of by higher earners, the Deputy will be aware that the tax system has become more progressive since 2009, meaning that those on higher incomes pay proportionately higher rates of tax on their income than those on lower incomes.

I would also point out the introduction of specific base-broadening measures; examples of these would be the Local Property Tax and the Carbon Tax.

In the Medium-Term Economic Strategy the Government has stated its commitment to support economic growth by ensuring any tax increases be effected in the first instance by base broadening through the elimination or curtailment of overly-generous, poorly targeted or otherwise unaffordable tax reliefs.