The tax burden on the low paid in Ireland is among the lowest in the developed world, according to figures from the European Commission.

Together with Spain and the Netherlands, tax cuts for this group were greatest here over the past few years, according to a document circulated at the Ecofin meeting of finance ministers earlier this week.

Speaking to the Institute of Certified Public Accountants last night, the Minister for Finance, Mr McCreevy, said the figures proved the Government's record in reducing the tax burden on the low paid and in removing the low paid from the tax net altogether was second to none. "The report indicated that Ireland's reduction in tax on low incomes between 1997 and 1999 was more than double that of Britain. When compared with the US and Japan, we have done significantly more to address the issues.

"In my first three budgets, more than 176,000 people have been removed from the tax net. The average rate of tax on single persons earning £10,000 (€12,697) has fallen from 19 per cent to 9.5 per cent and for a married person on that income from 7 per cent to nil."

Contrary to widespread belief, the tax burden on the low paid is also below Britain's. The Minister pointed out that, leaving aside the exchange rate, a single person on £14,000 faces a 16 per cent average tax rate here compared to 21 per cent in Britain. The difference is even more pronounced for married people on one income.

The report, which follows the OECD's Taxing Wages, found that the burden on single-parent families with two children at 67 per cent of the average wage was lowest in Ireland at -5.2 per cent (once welfare payments are included). That compares with 4.7 per cent in Luxembourg, 12.6 per cent in the US and 39.7 per cent in Sweden. Single people on the same wage with no children pay 21.5 per cent in tax compared to 18.3 per cent in Japan and 30 per cent in Luxembourg and 51.2 per cent in Belgium.

The same pattern is true for married couples. Those on two-thirds of average income pay 21.5 per cent compared with 18.3 per cent in Japan and 26.2 per cent in the UK. Those on the average wage pay 24.7 per cent - above the 18.4 per cent in Japan but below the 27.9 per cent in Luxembourg. The largest burden is in Belgium at 52.4 per cent.

According to the commission document: "Over the period 1997 to 1999 most memberstates succeeded in lowering marginal tax rates on low and medium incomes but the reduction was greatest in Spain, Ireland and the Netherlands.

"Only in Ireland, Luxembourg and the UK are the average tax rates on low and middle wages similar to or lower than the US."

Mr McCreevy added that he would complete the move to a tax credit system in the Budget. "People on lower incomes fare comparatively better under a tax credit system; this is because credits are of equal value to all taxpayers regardless of income."