Dáil Éireann debate -
Thursday, 24 Oct 1991

Vol. 411 No. 6

Written Answers. - Tax Changes.

Garrett Fitzgerald

Question:

86 Dr. G. FitzGerald asked the Minister for Finance the cost in the current year of (1) reducing the standard rate of income tax from 29 per cent to 25 per cent and (2) introducing a single higher rate of tax of 44 per cent.

Garrett Fitzgerald

Question:

87 Dr. G. FitzGerald asked the Minister for Finance the cost of increasing the personal income tax allowance by (1) £100, (2) £200 and (3) £500 for single persons and by double that amount for married persons.

Garrett Fitzgerald

Question:

88 Dr. G. FitzGerald asked the Minister for Finance the cost of increasing the standard rate tax band by (1) £500, (2) £1,000 and (3) £2,000 for single persons and by double that amount for married persons.

Minister for Finance (Mr. A. Reynolds)

I propose to take Questions Nos. 86, 87 and 88 together.

The estimated full-year costs to the Exchequer arising from the changes mentioned by the Deputy are as follows:

Tax Rates

(1) £249 million; (2) £143 million.

Personal Allowance

(1) Increase of £100 single/£200 married: £42 million;

(2) Increase of £200 single/£400 married: £84 million;

(3) Increase of £500 single/£1,000 married: £211 million.

These figures include the revenue effect of the associated increases in the widowed person's allowance, the widowed parent allowance and the single parent allowance.

Standard Rate Tax Band

(1) Increase of £500 single/£1,000 married: £47 million;

(2) Increase of £1,000 single/£2,000 married: £90 million;

(3) Increase of £2,000 single/£4,000 married: £162 million;

All the figures given are provisional and may be revised. They are estimated by reference to the current, i.e. 1991-92, income tax year. Each figure has been estimated separately and on the basis of the rest of the tax system remaining unchanged.