Catherine Murphy (Kildare North, Social Democrats)
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33. To ask the Minister for Finance the forms of stakeholder engagement he has participated in in advance of signalling his budgetary intentions to reduce income tax; and if he will make a statement on the matter. [31478/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government’s plans to reduce the income tax burden for all taxpayers, with a particular focus on low to middle income earners, were clearly stated in the Programme for Government published in May 2016.

The Programme for Government recognises that high personal tax rates in Ireland discourage work and jobs and have a negative impact on our international competitiveness. Therefore, it contains a commitment for a medium-term income tax reform plan that keeps the tax base broad, while reducing excessive tax rates for middle income earners, and limiting the benefit for high earners. We must appreciate the value of retaining the incentive to work, to enable those who work hard to provide for their families and generate further economic growth through employment and expenditure in the domestic economy.

As part of the annual budgetary process the third National Economic Dialogue took place in June, with representation and input from community, voluntary and environmental groups, from business, unions, research institutes, academics and the media. The debate and dialogue that we had last year at the second NED had a material effect on choices that I made in last year's budget, and I am now reflecting on this year’s debate in context of my deliberations for Budget 2018.

On an ongoing basis, my officials and I continuously engage with stakeholders, including in relation to Budget matters. By way of example the Department of Finance received over 400 Pre-Budget Submissions relating to Budget 2017 from a wide variety of groups, representative organisations and individuals. In addition my officials met with more than twenty organisations in the run-up to that Budget.

Preparations for Budget 2018 are now under way. In this context, the opportunity for stakeholders to make their views known to me has not passed. The Tax Strategy Group will meet later this month to discuss Budget options and the TSG papers will be published on my Department’s website. I also intend to continue the long standing practice of having a number of formal pre-Budget meetings with a variety of stakeholders, in addition to the normal ongoing engagement between my officials and relevant stakeholders.

 Furthermore, as the Deputy will be aware, changes to one particular tax, such as income tax, are not considered in isolation. They must be considered as part of the overall Budget process encompassing both revenue and expenditure measures and in the context of available resources. Any announcement in relation to changes to the income tax system would normally be made as part of the Budget and I am not inclined to diverge from this practice.