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Dáil Éireann debate -
Wednesday, 10 Feb 1993

Vol. 425 No. 7

Written Answers. - Income Tax Rates.

Pat Rabbitte

Question:

120 Mr. Rabbitte asked the Minister for Finance if, for each year from 1985 to 1991, he will give details of the tax threshold as a percentage of average male industrial earnings for a single person and for a married man whose wife is not working, the first rate of tax payable, the standard rate of tax payable, the standard rate of income tax, the effective rate of income tax, the average amount of income tax paid by the average PAYE worker and the number of persons subject to PAYE.

The information requested is given in the following table.

Year

Tax Threshold

Tax Rates

Average tax (PAYE) (g)

Number of PAYE taxpayers (h)

Married (a)

Single (b)

First rate (c)

Standard rate (d)-(e)

Effective Rate (f)

%

%

%

%

%

£

000's

1985-86 (1985)

43.5

25.8

35

35

(i) 19.8

2,457

745

(ii) 30.9

1986-87 (1986)

43.1

25.8

35

35

(i) 19.9

2,690

739

(ii) 31.3

1987-88 (1987)

41.4

24.8

35

35

(i) 20.5

2,904

736

(ii) 32.3

1988-89 (1988)

41.0

24.8

35

35

(i) 20.6

3,096¹

736

(ii) 31.0

2,994²

1989-90 (1989)

39.5

23.9

32

32

(i) 19.4

3,122*

748*

(ii) 29.6

1990-91 (1990)

37.9

22.9

30

30

(i) 18.6

3,283*

749*

(ii) 28.8

1991-92 (1991)

37.0

22.3

29

29

(i) 18.3

3,532*

756*

(ii) 28.8

¹ Includes amnesty related yield of £75 million.
² Excludes the effects of the amnesty.
* These figures are provisional.
General Note
The figures in columns (a) to (h) inclusive relate to the tax year specified except in the case of column (g) in relation to which the figures are based on the PAYE net receipt in the calendar year indicated in brackets.
Notes on table
Columns (a) and (b)
(i)Personal Allowances:
The single and married allowances have been augmented by the addition of the PAYE and PRSI allowances.
(ii)Average male industrial earnings:
The figures for average male industrial earnings are derived from the entries in the CSO series, "Gross Earnings and hours worked for male and female Industrial Workers (Adult Rates) by Sector". The CSO data for transportable goods industries were used.
Column (d)-(e):
There is no apparent difference between the "standard rate of tax payable" and the "standard rate of income tax". Consequently, the relevant information is given under one heading, (d)-(e), in the table.
Column (f)
Effective rate of income tax:
This is the effective rate of tax levied on the total income of:
(i) a married man, wife not working, on average male industrial earnings as described in the notes for columns (a) and (b) above,
and
(ii) a single person on average male industrial earnings as described in the notes for columns (a) and (b) above.
Column (g):
The amounts shown in the column are obtained by dividing the net receipt of PAYE tax in each calendar year by the number of taxpaying units shown for the corresponding tax year in column (h).
Column (h):
The numbers shown in this column are the numbers of taxpaying units estimated to beeffectively liable to tax under PAYE. A married couple who has elected or has been deemed to have elected to have the income of both spouses assessed on the husband is counted as one taxpaying unit.

Pat Rabbitte

Question:

121 Mr. Rabbitte asked the Minister for Finance the average effective rate of income tax, combined with employees PRSI, for each year from 1980 to 1991.

Pat Rabbitte

Question:

122 Mr. Rabbitte asked the Minister for Finance if he will give the average effective rate of income tax for each year from 1980 to 1991.

It is proposed to take Questions Nos. 121 and 122 together.

1. It is presumed that, by average effective income tax rate, the Deputy means the total income tax yield divided by the income tax base. The effective rate of income tax given is the average effective rate of tax levied on each pound of total income as illustrated by the calculation in Table 52 of the Statistical Report of the Revenue Commissioners for 1991.

The information requested is only available on a tax-year basis and is given in the following table:—

Tax Year

Average Effective Rate of Income Tax

%

1980/81

23.0

1981/82

23.5

1982/83

24.0

1983/84

25.2

1984/85

25.7

1985/86

26.3

1986/87

24.3

1987/88

25.3

1988/89

24.3

1989/90

23.4

1990/91

22.7**

1991/92

22.8**

**Provisional estimates.
2. The income base liable to employee PRSI is reckonable earnings from insurable employment up to the income ceiling less superannuation contributions. There is also a low earnings threshold. Figures are not available in respect of the PRSI income base but the yield from employee PRSI is shown in the table below. The effective rate of PRSI on income up to the relevant ceiling is the same as the contribution rate. For Class A employee PRSI, the rates for the relevant years are as follows; from 1979-80, the rate was 4.4 per cent; the 1980-81 rate was 4.5 per cent; the 1981-82 rate was 4.75 per cent and from 1982-83 to 1991-92 the rate was 5.5 per cent.
3. Figures are likewise not available in respect of the income base liable to the levies. These are now collectible on reckonable earnings from insurable employment, as for employee PRSI, but with no ceiling, and on income from a trade or profession and on investment income. There was a separate ceiling for the Health levy up until 1991 when it was abolished. The Health levy rate for the relevant years was 1 per cent from 1979-80 to 1986-87. From 1987-88 to 1991-92 the rate was 1.25 per cent. The Employment and Training levy which was introduced in 1982 has been charged at 1 per cent since 1982. The Income levy which was charged at 1 per cent of income in the years 1983-1985 applied to the same income base as the other levies. Yield figures for the levies are on the table below.
PRSI

Year

Employee PRSI Yield

£m

1980

111.7

1981

136.4

1982

204.7

1983

249.6

1984

269.6

1985

283.8

1986

293.8

1987

307.0

1988

326.3

1989

343.2

1990

368.0

1991

398.1

Levies

Year

Health Levy Yield

E+T Levy Yield

Income Levy Yield

£m

£m

£m

1980

43

1981

55

1982

64

34

1983

66

74

40

1984

70

83

78

1985

76

83

74

1986

81

91

33*

1987

101

97

3*

1988

138

126

1989

128

117

1990

140

125

1991

145

134

*Carryover figures.
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