Eight out of nine economic commentators working in Irish financial institutions are calling on the Government to persist with income tax cuts in the next Budget.

Their views, compiled in a poll published in the latest issue of Finance, also support the Government's policy of individualisation introduced in the last Budget.

Income tax cuts are being favoured because of their effect on the labour supply, promoting immigration and encouraging an increase in the labour force participation of women and older workers, the paper said.

One panel member, Dr Dan McLaughlin of ABN Amro, said the old income tax rates of 40 per cent and 20 per cent should be replaced with new medium-term targets of 30 per cent and 10 per cent.