Minister for the Arts John O'Donoghue has written to Minister for Finance Brian Cowen in support of continuing the artists' exemption scheme, which gives tax-free status to income from creative works.
Officials from Mr O'Donoghue's office are to discuss the scheme with their counterparts in the Department of Finance, amid increasing speculation that some form of cap may be placed on tax-free earnings under the system.
The artists' exemption was introduced in the late 1960s and is one of a series of tax-free schemes being reviewed by the Government.
Interest groups and agencies involved in the arts have been lobbying to have the scheme retained, arguing that the majority of people who avail of it earn less than €10,000 a year.
Last month Mr O'Donoghue wrote to Mr Cowen to support this position.
He has also urged artists and representative groups to lobby the Government on the issue.
Figures released by the Revenue Commissioners for the nine-month short tax year in 2001 showed that 1,325 people, who earned €80 million between them, were granted tax-free status for their work.
The cost to the Exchequer from tax revenue forgone was estimated at €23.5 million for the nine-month period or €36 million for the year. The fact such a small number of people accounted for more than half of the tax-free income has led to expectations a cap on tax-free earnings will be introduced.