The Minister for Finance Brian Cowen said today he would review the law covering the tax investors have to pay for indirect share transactions in stocks.
Stockbrokers have been lobbying the government on a move to apply stamp duty on Contracts for Difference (CFD), after a warning they may no longer be exempt from paying stamp duty on the transactions.
CFDs allow investors to trade on the difference in share prices between the start and end of a specified contract period, without directly trading in the stock.
Stockbrokers warned the change could result in a decline in investment in Irish shares.
The Minister said that he was anxious that the market in Irish equities would continue to be a modern, liquid market, conducive to capital acquisition by Irish firms.
In a statement today, his department said it would consult with the Revenue Commissioners and with market participants with a view to appropriate announcements being made in Budget 2007.
Minister Cowen also said today that the Irish economy will match last year's growth levels in 2006 despite rising interest rates and higher inflation.
Speaking at a Reuters news forum in Dublin Mr Cowen said he expected gross domestic product growth of 4.7% this year, in line with last year's figure, thanks to strong consumer spending.
Asked about the impact of higher rates on Ireland 's economy, Mr Cowen said they might be a good thing given strong consumption, house price growth running at 11.1% a year and an annual rate of inflation of 3.3% in February.
Mr Cowen said he would maintain a responsible budgetary position ahead of general elections but added that the Government would need to continue to spend to make up for infrastructure and social deficits.
He also said that a cap on immigration was not an option.
