CORI argues for tax rise

The tax take in the Republic is now the lowest in the EU, according to research published today by the Conference of Religious of Ireland (CORI).

This raises serious questions about the Government's ability to bring infrastructure and social provision here up to EU levels, CORI says.

The tax take here is 23.5 per cent of Gross Domestic Product, not only the lowest in the EU but one of the lowest among industrial countries worldwide.

Using the Gross National Product measure - probably a better measure of Irish economic activity as it excludes multinational profit repatriations - tax here stands at 28.7 per cent.

On either measure it is well below the EU average of 41 per cent.

Ireland's per capita income is well above the EU average, while infrastructure and social provision are well below the average, according to CORI.

It argues that to improve infrastructure and social provision, the Republic must move towards a tax take closer to the EU average.

The statement says CORI has consistently challenged those advocating a tax take well below the EU average to explain how high quality public services and infrastructure can be afforded. "No explanation has been forthcoming," it says.

"Consequently the Commission is forced to conclude that these groups are not prepared to support the investment required to ensure that Ireland's infrastructure and social provision reach EU average levels in the foreseeable future."

In today's statement, the Commission challenges the Government "to spell out in detail how it intends to honour the commitments it has already made on poverty and social exclusion."