Taxation: Widening bands and eliminating reliefs key to strategy

It is anticipated that a total of €5.06bn will be raised in taxation measures over the four-year life of the National Recovery Plan, including:

- €1.875bn in income tax (chiefly through widening the tax bands to include more taxpayers and the abolition of tax reliefs);

- €865m in pensions

- €530m in site-value tax;

- €300m in carbon tax;

- 570 in VAT.

Some of the key messages on the taxation strategy, as contained in the National Recovery Plan are:

- The income tax system is unsustainable if 45% of tax units pay no income tax;

- Radical base broadening across the tax system is needed;

- All taxpayers must contribute;

- By overhauling tax expenditures, those that can afford to pay more will pay more;

- The Government will maintain the 12.5% rate of corporation tax;

- Tax expenditures and reliefs must be abolished or restricted