Taoiseach Enda Kenny has conceded that income tax rates are too high in Ireland.
His comments come on the back of a call from Ibec to lower the rates in next year's budget.
The business group have branded income tax levels as a disincentive to work.
Speaking to CNBC, Enda Kenny says the rates are something his Government will consider when doing the sums for next year's budget.
"We recognise that income tax levels are too high here," he said.
"And it's very important that we have a consistent and a sustainable way of dealing with this - you can't deal with it without having your economy grow.
"All of this will be taken into account when preparing the budget for 2015. This is a priority for Government, but you can only deliver it if you can pay for it."