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'Limits on new taxes'

THE Irish economy has a limited ability to generate the additional taxes needed to achieve the €3.5bn in fiscal consolidation required by the Troika for the next Budget, tax experts have said.

The Irish Tax Institute said in its pre-Budget submission that imposing new taxes "cannot be done without consequences".

"Those contributing to the tax system have less disposable income than in 2008 and will have less again following any further tax increases," said president Martin Phelan.

In 2008 there were 2.1m workers in the country contributing €13.5bn in income taxes and the universal social charge.

But now there are just 1.8m workers generating €15.3bn in the equivalent areas, despite a significant reduction in salary levels.