Minister for Finance Brian Cowen has confirmed that the thresholds for claiming tax relief on medical expenses are to be abolished.
Mr Cowen made the announcement as the Finance Bill reached its final stage in the Dáil this evening.
At present, there are two minimum thresholds for claiming tax relief on medical expenses, €125 for one person or €250 for more than one person. The Bill provides that both thresholds will be removed.
Mr Cowen said he sees this change as an important provision which should be welcomed by taxpayers who in 2008 will receive additional cash-back for medical expenses incurred in 2007.
The requirement that the taxpayer who pays the medical expenses has to be related to the person in respect of whom the expenses were incurred has also been abolished, opening the way for people in non-marital relationships to claim the relief.
Mr Cowen said the cost of the changes to the thresholds will be approximately €21 million annually.
The Bill also provides for the introduction of a scheme aimed at encouraging the development of tourism infrastructure in the mid-Shannon area.
The final stages of the Finance Bill 2007 were due to pass through the Dáil this evening and it will shortly be presented to the Seanad.
Welcoming the passage of the legislation, Finance Minister Brian Cowen said it marked another stage in the Government's "progressive polices promoting fairness in the tax system so that the benefits of strong economic growth can be enjoyed by all taxpayers, especially low and middle income earners".
"This Finance Bill has a range of business friendly measures which will support our economy's continued growth, promote investment and rewards work," he said.
The legislation enshrines changes to the tax system and other issues outlined in last December's Budget. It also includes previously publicised measures to make it easier for taxpayers to claim tax back from the Revenue Commissioners and to claim tax relief on medical expenses.