Question:
229 Dr. Upton asked the Minister for Finance it he will establish a marginal rate for the application of the health levy in order that a pensioner's income, under £14,000, is exempt from the 2% levy. [25708/00]
Written Answers. - Health Contribution Levy.
I draw to the Deputy's attention that the 1994 budget introduced a low income exemption threshold for the health contribution levy, below which there is no liability to the levy. This threshold was substantially increased in the Social Welfare Act, 2000 and currently stands at £14,560 per annum, or £280 per week.
The levy threshold was introduced to focus assistance on those on low incomes. I appreciate that once a person's income exceeds the annual-weekly threshold the levy is liable on all his or her gross income from pound one and that this creates a "step" effect at the threshold.
However, I would point out that the threshold for the health levy is reviewed annually in the context of the budget.