Inheritance tax is becoming a "Dublin tax" and needs to be reformed, a Fine Gael TD has said.

Dublin South-West TD Colm Brophy was speaking ahead of the first meeting of the Inheritance Tax Reform Campaign tonight.

The group wants to see a total abolition of the tax or, at a minimum, its fundamental reform.

"While it is anticipated some changes will be made to the tax in the forthcoming budget, it is not expected that it will be abolished nor that many of its inequities will be addressed," the group says.

Colm Brophy told Newstalk Breakfast the country can afford to scrap it.

"We have a very strong economy at the moment," he said. “We have the benefits of many years of the good work done by Irish people and the Irish Government.

"We have an opportunity in this budget to look at things which were changed at the time of the economic crash in 2007.

'Dublin tax'

Deputy Brophy said the tax needs to be fairer.

"I think because of the situation where we find ourselves in now, where there is money and Government has the options to make choices in this budget, one of the things we should look at is fairness for those [who pay]," he said.

"It is a small number of people but it's hugely centred in Dublin and it's becoming, therefore, a Dublin tax.

"Particularly children [who] are caught up in a situation where they cannot inherit a family home without paying a substantial amount of tax."

Trinity Economics Professor Dr Barra Roantree told the show the changes should be about reform rather than abolishment.

"I think they're right that it should be reformed but they're talking about reforming it in the wrong ways," he said.

"At the moment very, very few people pay inheritance tax.

"You only pay inheritance tax if you inherit over €335,000 from a parent - the amounts are smaller for other ones - but they're the main sources of inheritance.

"The actual number of those who inherit more than that and so pay tax is less than 10% of those who inherit".

'I don't see a case'

Dr Roantree said the best reform is probably around family farms and businesses.

"They get very preferential tax treatment and if you want to reform the tax and make it fairer it would be [to] have it consistent across everyone so that it's not the case that, if you're inheriting a family farm or business you can inherit several million tax-free," he said.

"That's not what they're suggesting - they're suggesting making even fewer people pay that.

"I really don't see a case for that at a time when resources are so squeezed."

Dr Roantree suggested it is a "weird priority" and suggested taxes could be reduced on labour income.

"There are choices to be made here... if you have to make a choice why would it be [about] reducing the tax paid by a very small number of people?"

The main speaker at tonight's event in Dublin will be former Justice Minister Alan Shatter.