DUBLIN: Ireland has been urged by the International Monetary Fund to adjust its fiscal policy to support “job-rich growth.”
Rebalancing the tax mix would boost sustainable revenues and support job creation, the Fund said in a statement following its 2016 Article IV consultation with the country. “Less reliance on distortionary direct taxes, including by merging the universal social charge into a broader income tax with lower rates for below-median wage earners, would help reduce the tax burden on middle-income households, foster female labor force participation, and avoid welfare-traps for low-skilled workers,” it said.
Implementation of a uniform value-added tax rate and faster scaling up of the property tax would compensate for lower revenues from direct taxes, the statement said.
