Ivan Yates
Question:217 Mr. Yates asked the Minister for Finance the projected yield from DIRT tax in 1994; and the assumptions that underlie this reduction in yield from 1993.
Written Answers. - DIRT Yield.
The yield from deposit interest retention tax, DIRT, in 1994 is forecast at £120 million.
The three major factors contributing to the decrease in DIRT revenues relative to the position in 1993 are (i) the more widespread operation of DIRT-free accounts by companies and pension funds; (ii) the low deposit interest rates that are expected to prevail throughout 1994, in contrast to the relatively high interest rates in the latter half of 1992 and the early (part of 1993 that were reflected in the DIRT receipts in 1993; and (iii) the widespread take-up of Special Savings Accounts, on which DIRT is applied at a rate of 10 per cent, and where the full-year effect arises from 1994 onwards.