A government backbencher has suggested there should be an emergency budget to scrap the planned property tax.

Former banker Peter Matthews says instead there should be a 2.5% levy on Corporation profits, a betting tax and a levy on income over €120,000.

The Friday sitting in the Dail saw TDs debating amendments to the tax. These included that people entering a new personal insolvency arrangement will be allowed defer their payment. But the tax will have to be paid with interest once the person becomes solvent again.

Other amendments to the property tax include no payment for properties owned by charities or for those in pyrite hit-homes, until the pyrite issue is resolved.

Deferral of payment will also be allowed for those dealing with the estate of deceased persons and those who can show extreme hardship.

But the opposition say it does not go far enough in dealing with those who simply cannot afford to pay. However Deputy Matthews told the Finance Minister Michael Noonan that he should raise the money in a different way than the tax.