More than a third of Irish taxpayers believe taxes are too high and should be lowered even if it means fewer or diminished public services, writes Seán McCárthaigh.

The results of a new European Commission survey on public attitudes to taxation reveals 35% of Irish people favour lower taxes.

However, attitudes are split almost evenly on the issue as 34% stated they prefer higher taxes if it means more or better public services.

A further 25% said they thought that both taxes and public services should stay at the same level.

The Eurobarometer poll surveyed the attitudes of almost 25,800 citizens across the 27 EU member states on taxation, including over 1,000 people in the Republic.

Asked what taxes should be reduced first, two-thirds of Irish respondents (67%) said taxes on wages followed by taxes on housing (24%).

Only 17% of Irish respondents said they would support a reduction in VAT – the second lowest rate within the EU, where the average is 37%.

The relatively low level of support for a reduction in VAT rates among Irish taxpayers is interesting given the long-running campaign by the tourism industry for the VAT rate on the sector to be lowered from 13.5% to 9%.

Conversely, when asked what taxes should be increased to pay for public services, almost half (49%) said taxes on tobacco and alcohol, followed by taxes on investment income (33%) and taxes on business (26%).

In general, Irish respondents were largely in agreement that people in the Republic paid taxes in proportion to their income and wealth, with 76% holding such a view.

The Eurobarometer poll also revealed that 47% of us found filing their tax returns relatively easy.

Income tax was identified as the most complicated tax to calculate and pay by 30% of Irish respondents.

On a negative note, only 36% said they believed they received adequate support for filing their tax returns – the fourth lowest rate in the EU – while half said support levels were inadequate.

The report also highlighted that two-thirds of Irish taxpayers (67%) would favour a minimum level of tax being imposed on the wealthiest individuals based on their wealth and not just their income, with 22% claiming such a policy would have too many drawbacks in terms of loss of competitiveness and flight of capital.

More than three-quarters of us (77%) also supported large multinational companies being required to pay a minimum amount of tax in the country where they operate.

A majority of Irish taxpayers were positive towards taxation being used for environmental purposes with 62% supportive of using taxes to discourage the usage or consumption of environmentally harmful goods and polluting energy sources.

However, 39% of Irish people said they would oppose taxes on air travel being increased – the fourth highest rate in the EU after Cyprus, Estonia and Malta – although a narrow majority of EU taxpayers would support such a measure.

The survey showed 42% of Irish respondents said they had either a good or very good understanding of their country’s taxation system – the seventh highest rate and above the EU average of 35%.

It also revealed that Irish citizens are more likely than any of their European counterparts to have bought tobacco abroad in the previous 12 months at 21%, while 15% also said they had bought alcohol online from a retailer in another country over the same period – which was the second highest rate after the Netherlands at 16%.

Overall, almost four out of 10 respondents across the EU supported lower taxes even if it meant a reduction in public services.

Among those in favour of higher taxes, almost half said they would first increase taxes on tobacco and alcohol.

The report concluded: “By assessing and understanding EU public opinion on this topic, the European Commission is better able to shape its taxation policy around the needs and priorities of EU citizens.”