Students advise early SSIA cash-in

A four-month "window of opportunity" to allow people cash in their special savings incentive accounts (SSIAs) was among the Budget ideas put forward by prize-winning business students to the Institute of Taxation.

Students from the Kemmy Business School in the University of Limerick won the top prize in this year's Irish Taxation Institute "Fantasy Budget" competition.

The students' budget contained a number of creative ideas, including a four month "window" between January and April 2004, during which no penalties would be imposed for cashing in SSIAs.

Such a measure could save the Government significant funds, as the famously expensive initiative had a much higher take-up than expected and runs until 2007.

The students yesterday presented 10 ideas from their budget during an award ceremony at the institute's Dublin offices. Among the measures was the imposition of loading onto people's motor tax bills where they had more than three penalty points on their driver's licence.

Drivers with four to seven points on their licence would have to pay 8 per cent more motor tax, and drivers with eight to twelve points would have to pay 12 per cent more. Drivers with fewer than three points would get a reduction in their motor tax bill.

On alcohol, the students recommended a 10 per cent increase in excise duty on alcopops and spirits, and a 3 per cent reduction in duty on low-alcohol drinks.

On child benefit, the students would introduce bands above which the payments would be cut.

The members of the team were Ms Deirdre Harrington; Ms Deirdre Sheahan; Ms Fiona Carroll; and Mr Liam Slattery. Second prize was won by a team from the Masters in Accounting course in NUI Galway, and third prize by another team from the Kemmy School in Limerick.