Green Party leader Trevor Sargent today vowed to tackle "rising inequalities" borne out of Ireland's economic boom as he set out his party's tax reform policies ahead of the May 24th general election.
Speaking in Dublin this morning, Mr Sargent said his party's policy contained "well thought-out, measured proposals, which will safeguard economic prosperity for coming generations as well ensuring a fair deal for this one."
The plan includes a cut in VAT, a reduction in PRSI and an adjustment of income tax bands.
Included in what Mr Sargent called a "pro-business" range of proposals are plans to:
- Index link the standard rate of income tax
- Reduce VAT by 1 per cent to 20 per cent and 13.5 per cent to 12.5 per cent
- Cut employers' and employees' PRSI by 0.5 per cent
- Increase CGT by 5 per cent to 25 per cent
- Introduce a carbon levy on coal, gas and oil imports
- Introduce a site value tax, based on the value of the land
- Re-introduce a bank levy on deposits held in Ireland by financial institutes
- Maintain the current rate of corporation tax at 12.5 per cent
- Replace VRT and motor tax with an environmental levy
The Green Party also proposed a stamp duty exemption that would be available to those trading down to smaller homes and to first time buyers purchasing from properties vacated under this "empty nest" initiative.
Enterprise spokesperson Eamon Ryan said Ireland's cost base was "rising unsustainably" and there was now an "urgent need" to develop a highly skilled knowledge-based economy so that companies could again establish a competitive trading base.
He said the party would reform the current approach to R&D and, in government, would seek a €5 billion investment in the sector by 2012, alongside the extension of the remit of Science Foundation Ireland to include energy research.