Dáil Éireann debate -
Tuesday, 27 Apr 1993

Vol. 429 No. 6

Written Answers. - Imposition of 1 Per Cent Tax Levy.

Dinny McGinley

Question:

82 Mr. McGinley asked the Minister for Finance if his attention has been drawn to the widespread concern of the seasonally temporarily employed workers at the imposition of the 1 per cent levy on those earning in excess of £173 per week; and if he intends amending the Finance Bill to make such people exempt.

Minister for Finance (Mr. B. Ahern)

I am aware of various comments on the effects of the temporary income levy. I would emphasise however, that the levy was introduced in the interests of a sound budgetary policy as an essential element of employment strategy and to maintain adequate social services and programmes.

As the Deputy is aware, the income levy, which came into effect from 6 April, is payable in any week where income is greater than £173. In setting the threshold at this level, rather than the general tax exemption limits, I was conscious of the need to protect the lower paid. The potential full-year yield from the levy is reduced as a result by some £20 million. In addition, all medical card holders are exempt from the levy. Welfare payments are also exempt from the levy and such payments will not be taken into account in determining whether an individual qualifies for an income exemption from the levy.

I have no proposals to allow any further exemptions from the scope of the levy.