CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. IMF Warns Ireland To Be Cautious On USC Reform

IMF Warns Ireland To Be Cautious On USC Reform

by Jason Gorringe, Tax-News.com, London

10 February 2017


The International Monetary Fund (IMF) has said Ireland must ensure that it does not shrink its tax base when reining in the Universal Social Charge (USC), which is levied in addition to individual income tax.

The USC was introduced following the financial crisis as a progressive surcharge on top of income taxes. The IMF recommended that the USC should be merged "into a broader income tax with lower rates for below median-wage earners." This "would help reduce the tax burden on middle-income households." It said the costs of this reform could be offset by reducing the number of products with reduced or zero value-added tax rates, and by "scaling up" the property tax.

The IMF observed that most of the overperformance in tax revenues in 2016 was absorbed by spending increases voted over the course of the year. It said that any government spending above that already earmarked for 2017 would need to be offset by tax hikes or other spending if the Government is to meet its deficit target.

The IMF also noted that international tax developments could affect Ireland's economy. However, it stressed that the ultimate impact on foreign direct investment, revenue, and employment of issues such as the European Commission's decision in the Apple state aid case, the renewed discussion of an EU-wide common consolidated corporate tax base, and potential reductions to US corporate tax rates, is at this stage uncertain.

TAGS: tax | investment | European Commission | Ireland | property tax | International Monetary Fund (IMF) | corporation tax | tax rates | social security | United States | tax reform | individual income tax | European Union (EU) | Europe

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 

Log into Tax-News+
Not registered yet? Find out about our daily news alert service »

 Email: 
 Password: 

Login »

Forgotten your password?







Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »