Minister for Finance Brian Cowen has today announced the establishment of a Commission on Taxation to consider issues including the introduction of a carbon tax.

The announcement will fulfil the commitment in the Programme for Government, to review the structure, efficiency and appropriateness of the Irish taxation system.

The introduction of a carbon tax requires a completely new tax charge and structure, therefore the Commission has been charged to commence work in this area immediately. It is requested to report on the results of its examination and consideration and to make such recommendations as, and when, it thinks fit to the Minister for Finance but not later than 30 September 2009.

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Mr Cowen said: "The work of the Commission will help establish the framework within which tax policy will be set for the next decade at least and it is important that the Commission take a strategic, considered and balanced perspective that recognises the evolving challenges we face."

Meanwhile Labour spokeswoman Jan Burton has criticised the make-up of the panel. She said: "The membership of the Commission appears to be disproportionately skewed towards those who in the past would have had a professional relationship with the very wealthy and who may well have been involved in advising clients on tax avoidance measures.

"There appear to be few voices on the Commission who would have much direct experience of the tax issues of concern to low and middle earners."

However, Mr Cowen said: "I believe that the wide range of skills and knowledge of the members of the Commission will help ensure that we get a report that can help shape future policy in a positive manner. I would like to thank the chair and members of the Commission for agreeing to serve on it."

And while he spokeswoman did welcome the fact that the Commission has been asked to look at the introduction of a carbon levy, she felt disappointed that they have not been asked to specifically look at the implications of any such levy for those on low incomes.

(VB/JM)