The Minister for Finance has appeared to downplay any prospect that he would follow through on the commitment outlined in the Budget last year to cut the top rate of income tax to 40%.
Speaking at a public policy lecture organised by Indecon economic consultants in Dublin, Brian Cowen said he made it clear at the time that the commitment to cut the top tax rate was contingent on the strength of the economy being maintained.
He pointed out that economic conditions since that time have softened.
Mr Cowen also said that he would not consider any taxation proposals that might result in lower tax revenue for the Government.
He will be following through on the proposals to increase vehicle registration tax and motor tax on cars with high carbon emissions.
Labour's Deputy Leader, Joan Burton, said the Minister's comments on the context of the budget appeared to be preparing the ground for wholesale reneging on Fianna Fáil's pre-election promises.
Ms Burton said the message now appeared to be very different from the one the people were getting from the Taoiseach and Mr Cowen prior to the election.
