The Communications Minister Pat Rabbitte has admitted the new postcode system will make it easier for Revenue to collect taxes.
Pat Rabbitte was speaking as the new EirCode service was unveiled in Dublin today.
It will assign a seven figure combination of letters and numbers for every house in the country.
Critics have accused the system of streamlining collection of the property tax.
Minister Pat Rabbitte says that is not the service's purpose, but it will make things easier for Revenue.
The EirCode service will see every house and business in the country allocated a number, which will uniquely identify their address.
It has been described as the most advanced system of its kind in the world, and is designed to easily link with databases, online maps and smartphones as well as boost ambulance response times.
Capita Ltd have a 10-year contract to deliver the system.