asked the Minister for Finance whether he will review the tax reserve certificate scheme in view of its total yield last year of only £24,000; and, in particular, if he will consider (a) making such certificates more easily available, for example from post offices, (b) attaching to them a higher and more realistic rate of tax free interest, and (c) advertising the scheme's existence.
Written Answers. - Tax Reserve Certificate Scheme.
32.
For several years past the value of tax reserve certificates issued has been extremely small and does not warrant the continuation of this scheme. While easier access to certificates and more attractive rates of interest would probably result in greater demand, the principal consideration must be whether these certificates facilitate the collection of taxes. They were introduced originally in 1962 to serve as a temporary investment vehicle for persons wishing to provide in advance for certain tax payments. I believe that there is no longer a need for such a facility because of the range of opportunities now available for short term investment. While a high interest rate would probably stimulate demand, this would be self-defeating because of the cost to the Exchequer. Consequently, I am arranging that the issue of these certificates will cease with effect from the end of the current income tax year.