Taoiseach Brian Cowen has welcomed the publication of the report of the Commission on Taxation as its sets out a framework for reforming the taxation system over the next decade.
The Taoiseach said it is an important and timely contribution because of the serious recession and there has been a serious downturn in Government revenues.
He said that Finance Minister Brian Lenihan and the Government will consider all the recommendations regarding a proposal for a property tax and other matters.
The Taoiseach said he did not think it was controversial in the sense the report seeks to set out what contribution can be made from taxes on income, capital and property in trying to find the best way forward.
He said there is an inextricable link between the elimination of stamp duty and the introduction of a property tax and says it is very important to come up with a fair and equitable way forward.
Meanwhile, the annual property tax proposal contained in today's report will only support inefficient local government, according to the Dublin Chamber of Commerce.
'The annual property tax recommendation instead of making a sustainable tax base will only create inefficient local government,' said Gina Quin, Dublin Chamber's CEO.
'It is usually the case that property taxes are local, as they are linked to local services. The Commission's recommendation separates this linkage and will end up punish those living in urban areas, where it is more cost effective for local authorities managing services,' she added.
Commenting on the proposed new property tax, Bloxham Stockbrokers said that while it feels this measure of taxation is inevitable in the future, it thinks a flat rate charge would be more appropriate than the Commission's recommendation of a self-assessment system based on the open market value of the property.
The Irish Stock Exchange welcomed today's proposal to reduce the 1% stamp duty on all transactions in Irish shares to zero.
It said it has consistently advocated the abolition of stamp duty on share transactions, adding that Irish stamp duty on share transactions is the highest in the Western world and an anomaly in global competitive markets.
Road-map for tax reform
The Small Firms Association says the report should give the Government a road-map for tax reform in the coming years to ensure that the tax base is broadened and that the overall low-tax base vision is maintained. The SFA says this is key to indigenous enterprise development.
It also welcomed the proposed change in the rate of taxation on the disposal of assets used for trading purposes to the corporation tax rate rather than the higher capital gains tax.
The Irish Exporters Association today welcomed the report, stating that by and large it is supportive of the export sector, and has included many of the IEA 's recommendations to the Commission.
However, it said it was concerned about the impact of any new carbon tax on high energy user manufacturers and the transport sector.
ICTU concern at possible new burdens
But the Irish Congress of Trade Unions expressed deep concern that the recommendations of the Commission on Taxation could result in 'significant new burdens being placed on already hard-pressed working people.'
'The Commission's recommendations, if implemented in full, could see working people hit with higher costs at an already difficult time, while the business sector would benefit - effectively a transfer of resources from one to the other. That is neither fair nor sustainable,' commented Congress Economic Advisor Paul Sweeney.
