Irish Taxation Institute has said today's four-year fiscal plan introduced by the Government will "bring Ireland’s tax system more into line with the OECD average across a range of income levels".
The president of the Irish Taxation Institute, Andrew Cullen, said: "All sectors of Irish society are being asked to share the burden of these revenue generating measures, which must restore growth and create jobs if the reforms are to have been worthwhile."
The National Recovery Plan sees major structural reform of the Irish taxation system.
The reforms set out in the plan will involve significant up-front changes to Ireland's income tax system in 2011, followed by increased consumption taxes, a new property tax and possible water charges in the latter years of the plan.
The reductions in tax credits and bands will bring more people into the tax net at the lower end and will increase the number of taxpayers who pay the marginal rate of income tax at 41%.
Mr Cullen said: "These measures broaden the tax base to a more sustainable level for the future and bring Ireland’s tax system more into line with the OECD average across a range of income levels.
"One of the most fundamental changes in today’s National Recovery Plan is the reduction in the relief for pension contributions. These changes are coming at a time when 45% of the population do not have an occupational pension provision, an issue which has serious implications for the long term viability of pensions."
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