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Dáil Éireann debate -
Tuesday, 19 Feb 2002

Vol. 548 No. 5

Written Answers. - Insurance Levies.

Ivor Callely

Question:

187 Mr. Callely asked the Minister for Finance the yearly breakdown of the yield which was generated from the imposition of the insurance levy; and if he will make a statement on the matter. [5503/02]

A levy was first imposed on insurance premiums – both life and non-life – in 1982. Both levies were imposed initially at a rate of 1% of gross premiums. The life levy was increased on a number of occasions up to 3%. It was abolished with effect from 1 January 1993. The non-life levy remained at 1% until 1993 when it was increased to its current rate of 2%. The non-life levy is imposed on almost all non-life insurance premiums, the exceptions being re-insurance, voluntary health insurance, marine, aviation and transit insurance and export credit insurance.

From 1982 until 1990 the only yield figures available are an aggregate of the levies arising on life and non-life premiums. These are as follows:

Non-life and Life Levy Yield

Year

€m

€m

1982

0.82

1.04

1983

8.60

10.92

1984

14.82

18.82

1985

17.12

21.74

1986

15.20

19.30

1987

24.35

30.92

1988

29.74

37.76

1989

38.68

49.11

1990

35.27

44.78

From 1991 onwards the yield figures for each of the life levy and non-life levy are as follows:

Non-life Levy Yield

Life Levy Yield

Year

£m

€m

£m

€m

1991

9.97

12.66

17.79

22.59

1992

11.70

14.86

16.94

21.51

1993

16.15

20.51

2.93

3.72

1994

25.21

32.01

0.12

0.15

1995

29.32

37.23

1996

28.43

36.10

1997

30.45

38.66

1998

33.33

42.32

1999

37.90

48.12

2000

44.86

56.96

2001 (Provisional)

54.43

69.11

2002 (Estimate)

74.00

This levy was introduced to broaden the stamp duty base, thereby raising additional revenue. I have no plans, at present, to abolish it.
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