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effect by 1999/2000. Nonetheless, the figures show an increase inthe average tax rate paid by high earners; the percentage of highearners paying an average tax rate above 45 per cent increased from8.8 per cent in 1994/95 to 13 per cent in 1999/2000. The 2002 studyagain found that it was property tax reliefs (including car-parks andhotels) that were most effective in reducing the tax rates of thehighest earners.TABLE 7.4Distribution of Effective Tax Rates of Top 400 Earners(Percent of Total)Effective Rate 1994/95 1999/00Less than 30% 30.75% 29.2%30%-44% 54.75% 57.8%45% and higher 8.25% 13.0%Information not available 6.25Total 100% 100%Tax and Social WelfareSource: Revenue Commissioners (2002), Effective Tax Rates for High EarningIndividuals.Most of the property tax incentive schemes are due to expire inDecember 2004. In the Budget 2003, two tax relief schemes wereextended (Town Renewal and Park and Ride), and the expiry datefor two schemes (student accommodation and film relief) wasbrought forward. Capital allowances for hotels were reduced andthe allowance for investment in holiday homes was abolished.Of the tax reliefs listed in the Appendix, the largest in the area ofpersonal taxation is that for pensions. Ireland is similar to manyother OECD countries in exempting both the pension contributionsmade by employers and employees and the income of pension fundsthemselves, but Ireland and the UK are unusual in also exemptingcertain lump sum payments payable from the fund to beneficiarieson retirement (while taxing the pension itself). In this section, theresults of analysis carried out by the ESRI for NESC is outlined.This exercise, utilising 1998 Living in Ireland (LII) Survey data,299