Renua Ireland will propose the almost complete abolition of tax shelters in its general election manifesto, which will be published this morning.

The party has said it will be one of the main ‘quid pro quos’ for its headline proposal of a flat tax of 23 per cent.

A Renua source estimated that the saving to the Exchequer from abolishing all such reliefs could be in excess of €7 billion.

‘‘Going on 2013 figures there could be a cost saving in the region of €7.5 billion but that is a moving target. The saving, however, will be in the billions,’’ said the source.

In advance of today's publication, party leader Lucinda Creighton said a key element of Renua's flat-tax proposal is that "all of the tax reliefs, shelters and credits which have done so much damage to the economy are unnecessary".

“Instead, industries will have to sell the benefits of their products and services to consumers. Industries that have historically benefitted from tax-efficiency schemes that only the very wealthy could avail of will now have to provide an economic return to investors which does not come at a cost to taxpayers,” she said.

Tax reliefs

There are only a limited number of circumstances, the manifesto will state, where tax reliefs could apply.

Childcare and community care for patients with long-term conditions were two examples.

The manifesto will lay out five principles that it claims has the potential to transform Irish society.

They are the flat tax rate of 23 per cent; tax cuts for working parents to help finance childcare; ending what it says is “tax discrimination” for entrepreneurs and the self-employed; a zero tolerance approach to crime; as well as more transparency and reform in the political system.

It also proposes that the future election manifestos of all parties be costed by the Irish Financial Advisory Council, which it says will be given an extended role in the State's economic affairs.