Cowen: Tax report is framework for reform

The Taoiseach Brian Cowen has said that the Commission on Taxation Report is "a comprehensive examination of our tax system".

Mr Cowen went on to say that the report "is setting a framework for reforms over the next decade."

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.

Finance Minister Brian Lenihan said the proposals would help shape the country’s taxation system over the next decade, with many of the measures phased in over several years.

“To achieve economic recovery we must address the different challenges that we face, stabilise our public finances, resolve the difficulties in the financial sector, and improve our competitiveness at the same time,” the minister said.

“This report will play a role in stabilising our public finances and improving our competitiveness.”