asked the Minister for Finance if, in the light of its possible adverse effect on industry, he will consider altering the provision in the Finance Act, 1986, for a 12 per cent stamp duty on section 84 loans.
Written Answers. - Stamp Duty on Loans.
59.
Section 94 of the Finance Bill, 1986, imposes by way of stamp duty a levy on interest arising from "section 84" loans at a rate of 12 per cent where the effective rate of interest is 6 per cent per annum or greater and at a rate of 8 per cent where the effective rate of interest is less than 6 per cent.
I do not accept that this levy will have adverse effects on industry. The levy is a modest one as is evidenced by the fact that, whereas "section 84" loans cost the Exchequer over £85 million per annum in revenue foregone (which must be made up elsewhere), the yield from the levy in 1986 is estimated at £6 million only. The continued availability of "section 84" loans thus provides Irish industry with marked advantages provided at a significant cost to the Irish taxpayer.