The Exchequer could collect at least €2 billion more in taxes if all tax relief schemes were available only at the standard rate, the justice committee of the Conference of Religious in Ireland (Cori) has said.
In a pre-budget briefing, the Catholic church organisation said yesterday it was unfair that people on lower incomes could only claim tax relief at 20 per cent, while those on higher incomes benefited from relief at a rate of 41 per cent.
The group has also called for an increase in social welfare payments of at least €9.90 a week.
Fr Seán Healy SMA, director of Cori Justice, said the Government should give priority to initiatives that are good for the vulnerable and good for the economy.
He said it was profoundly unfair that a person on a lower income has to pay substantially more for a treatment compared with a person on twice that income.
He said the exchequer could collect at least an additional €2 billion in revenue if all tax relief schemes were available only at the standard rate.
Cori also said the Government should not widen tax bands in the budget, but if money was available for adjustments, should increase tax credits, so that any change benefited the lower paid. For those on the lowest pay, tax credits should be refundable so that they receive the benefit of any budget adjustments.
Budget 2009 should increase the minimum social welfare payment by €9.90 a week, bringing it up to €203.75 weekly, Cori suggested.
Couples getting social welfare payments who live together get a smaller amount than those living apart, Cori pointed out, receiving €329.10 a week compared with those not together who get €395.60.
Cori said that though recent budgets had gone some way towards addressing the issue, the system was still unfair and inequitable.
