The Irish Taxation Institute is calling on the Finance Minister to get the basics right in next week’s budget.

In its pre-budget briefing, the Institute said tax was only one part of Brian Lenihan’s budget and that as a state Ireland is over-spending.

It is warning against increasing income tax.

Tax lawyer Suzanne Kelly says doing so could damage our competitiveness.

“If other countries have lower income tax rates, that can be a decisive factor as to whether a company will locate here or not – so it can be a problem” she said.

“Our rates have increased significantly – you can really say you’ve had a 10% increase since last October with the two budgets”.

“So we have been on the increase, but there’s a limit of tolerance as to where we can go – and we’re touching on it” she added.