The plan had been put forward by the Department of Rural and Community Development to “foster a more philanthropic culture” amongst the wealthiest in Ireland

It comes as his Coalition leader in Fianna Fáil has pledged to reduce inheritance tax to 25 per cent and raise the thresholds for paying it.

The biggest budget in the history of the State has been unveiled, the last before an upcoming General Election.

Tánaiste Leo Varadkar described some recommendations in the final report as "straight out of the Sinn Féin manifesto"

Three members of Fine Gael's finance committee said reducing the amount a child can inherit tax-free from their parent during a cost-of-living crisis would amount to "an attack on working families"