The Commission on Taxation has recommended taxing child benefit in a report containing radical proposals to raise revenue, it emerged today.
Householders could also be hit with a property tax and water charges under the suggestions by the Commission on Taxation, set up to help shore up the public finances.
A three-rate income tax system could also come into force under the plans by the expert group set up by the Government to review the State’s taxation system.
Anybody earning more than €250,000 will have tax loopholes closed off to them under the proposals.
The Commission also suggested a carbon tax to help slash greenshouse gas emissions and scrapping stamp duty on debit and credit cards.
Frank Daly, commission chairman, said: “Some of our proposals are radical – an annual tax on residential property, domestic water charges, a carbon tax, and removing or limiting most of the tax breaks that are currently available.
“We believe that it is not possible to keep things as they are.”
Key proposals of the Commission include:
:: An annual property tax on homes based on market value should be introduced as soon as possible.
:: Domestic water charges should be phased in over a five-year period. They would be based on use but would begin with a flat-rate charge. Waivers will be given to those unable to pay.
:: Carbon tax will be introduced on all fossil fuels used in Ireland to help slash the country’s greenhouse gas emissions.
:: Child benefit would be taxed at source but a child benefit credit will be given to off-set the hike for low-income families.
:: A measure already exists to close-off tax incentives for those earning over €500,000. The Commission proposes reducing the limit to €250,000.
:: Stamp duty on ATM, credit and debit cards should be phased out to help promote a cash-free society.