Technical difficulties may delay tax changes

THE Government has indicated to the social partners that there may be technical difficulties in increasing taxation this year, even though unions are demanding immediate action to broaden the tax base in 2009.

During the second day of substantive negotiations on how the state is going to save €2 billion in exchequer spending, the social partners appeared to agree on the need for a broadening of the tax base.

However, after the talks, Irish Congress of Trade Unions general secretary David Begg said he did not know to what extent the Government will act this year. “They have some technical problems which make it difficult to adjust the tax base this year relating to the time of the year you start to do things,” he said. Unions are of the opinion that there should be a budget in 2009, and last night Mr Begg reiterated ICTU wants action as soon as possible.