Tax hikes will ‘drive people into black economy’

RAISING income taxes will only drive more people into the black economy rather than raising Government revenues, claims Education Minister Ruairi Quinn.

As the EU/IMF/ECB assessors embarked yesterday on their latest check of compliance with requirements attached to their bailout loan to Ireland, they will be asking key questions about proposals being prepared to increase taxation measures.

The narrowing of income tax bands and lower tax credits were conditions of last December’s agreement with the troika but the Government is seeking clearance to find alternative measures.