Tax experts: PRSI increase too much of a risk

Tax experts are warning about the risk to the economy of an increase in PRSI.

It follows weekend reports that a report is being prepared for the cabinet, highlighting potential shortfalls in the fund in the coming years, unless steps are taken to increase contributions.

Fergal O'Rourke from Pricewaterhouse Coopers says most people view PRSI as an extra form of tax.

And he says imposing an increase would hit efforts to get the economy going again: "All sides of the political spectrum agree that we need to create more economic activity.

"Studies have shown…if you increase tax on labour it has the biggest negative impact on economic activity."