Report of Commission on Taxation to be launched

Major changes to the tax system are expected to be recommended by the Commission on Taxation when it launches its report later today.

The 250 proposals are expected to include a tax of up to 8c on a litre of petrol or diesel, a new property tax and a new higher rate of income tax.

There is also speculation of a tax on some social welfare benefits, including child benefit.

The Minister for Social Welfare Mary Hanafin has said a lot of consideration is being given to what changes should be made to child benefit.

Meanwhile the Government is being called on to introduce water charges for some householders as it considers how to raise more revenue.

Chambers Ireland said with the decline of the construction sector, local authorities need new ways to raise funds.

Deputy Chief Executive Sean Murphy said they would be in favour of water charges for some people, above a reasonable threshold.