According to a recently published report by the Working Group on Long-Term Fiscal Planning the government will need to find additional tax revenue at some point in the future to close a gap in the finances. The government has emphasized that fiscal prudence continues to be important. Although the government agrees with the finding of the Working Group that more revenue could be raised from a broadening of the indirect tax base, it does not consider that there is room for direct tax increases. If such increases are considered there would also be other policy considerations to take into account.
Government service fees are currently under consideration. An adjustment to fees, which are charged on the principle that the user pays for services rather than the taxpayer, could increase government revenues without requiring an increase in general taxation. All government departments are reviewing fees but they will take into consideration the affordability of the services to the public.
