The Government would honour its commitment relating to no increase on income tax bands, Taoiseach Enda Kenny told the Dáil this afternoon.
"The Government will introduce budgetary changes which will aim to fully realise efficiencies identified while remaining fiscally neutral,'' he added. "We have no intention of reneging on the commitment in respect of income tax.''
Mr Kenny said that the situation in Portugal and Greece was of a very topical conversation in Europe. "Ireland is proceeding on the basis of looking for improvements on this deal in a constant basis,'' he added.
"We have made the case in respect of an interest rate reduction and we are continuing to do that.''
The Taoiseach was replying to Fianna Fáil leader Micheal Martin who asked the Taoiseach to explain the current status of the Coalition's tax promise.
"The programme for government states absolutely, clearly that bands and credits will be maintained, but last week the Cabinet published a document stating that the next budget will include a lowering of tax bands and credits, which basically means that working people will have to pay more tax on their income,'' he added.