The Government released its Programme for a Partnership Government which contained a number of tax proposals. A medium-term income tax reform plan will be published for consultation with the Oireachtas Committee on Finance by July and for approval in October.

Among the proposals which aim to make the tax system fair and progressive is commitments to:

• Continue to phase out the Universal Social Charge (USC).
• Remove the PAYE tax credit for high earners.
• Increase the earned income tax credit from €550 to €1,650 for the self-employed by 2018.
• Introduce a PRSI scheme for the self-employed.
• Provide a supportive tax regime for entrepreneurs and the self-employed.
• Increase the capital acquisitions tax threshold for children inheriting from their parents (Group A) from €280,000 to €500,000.
• Increase the small benefits exemption from €500 to €650.
• Introduce a new tax on sugar sweetened drinks.
• Improve tax compliance.
• Maintain the 12.5 per cent corporation tax rate.
• Reduce the rate of capital gains tax for new start-ups to 10 per cent (current 33 per cent) from 2017.