IMF urges Government not to cut taxes in future Budgets

The International Monetary Fund (IMF) has urged the Government not to cut taxes in future Budgets.

In a report, it says the tax base should be broadened to protect the economy from future shocks recommends fiscal policy be tightened up.

The IMF proposes a number of changes to do that, such as scrapping the 9% VAT rate for the hospitality sector in broadening the tax base.

It also recommends increasing the excise tax on diesel and a gradual increase of the property tax to take into account new valuations.

The IMF report notes the economy is vulnerable to a number of risks including Brexit and changes in tax policy in the US that may pull some international investment away from Ireland.

Taking this into account, it has advised Minister for Finance Paschal Donohoe to build up some buffers by tightening things up, and not spending or cutting taxes wildly in the budget.

- Digital Desk


Related Articles

Growth outlook for world economy remains strong

IMF urges Italy deal with commission

More in this Section

Jo'Burger restaurants go into liquidation

Kerry Group buys US ‘clean label’ firms for €325m

Irish mortgage rates end the year as most elevated in Europe

Westport emerges as 'Botox capital of the world' as plant sells $4bn of Botox to the world in two years


Lifestyle

Lindsay Woods: At a time of year when the pace is frenzied and days are full of school plays and deadlines, the chance to break from routine is a welcome one

On the red carpet: Margot Robbie, Saoirse Ronan, Diane Kruger and Cheryl

Raise a glass to Christmas festivities

The best festive desserts to try out this Christmas

More From The Irish Examiner