Tax relief cuts key to savings

THE ending or tightening of tax reliefs on pension contributions and mortgage interest could be key to saving the Government €13.5bn over four years, an expert has suggested.

Dr Michael Collins, an economist at Trinity College Dublin and a former member of the Commission on Taxation, highlighted these areas as among the main reforms of tax breaks needed to help reduce the loss of an estimated €11 billion from more than 130 existing tax reliefs. He co-presented a paper on the issue at the Dublin Economic Workshop in Kenmare, Co Kerry.

“We pointed towards reform of pension tax reliefs, that they should be brought to a single rate, a reduction in the employee tax credit, and a phasing out over four years of mortgage interest relief,” Dr Collins said.