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Dáil Éireann debate -
Tuesday, 22 Feb 1994

Vol. 439 No. 2

Written Answers. - Tax Free Allowances.

Liam Fitzgerald

Question:

41 Mr. L. Fitzgerald asked the Minister for Finance if his attention has been drawn to the fact that the tax free allowance for a handicapped child has been £600 for the last ten years; if he has investigated the feasibility of increasing this allowance; and if he will make a statement on the matter.

In line with Government tax policy in recent years which has concentrated on reducing the tax burden on income earners generally using the proceeds of base broadening and the curtailment of reliefs, the tax allowance for incapacitated children has not been increased. Policy in this regard has also taken account of the position that the income tax code is not the appropriate vehicle for making provision for the special needs of incapacitated taxpayers; this is better done through the direct expenditure system, where benefit can be more accurately related to need and where trained personnel are available to assess the level of need in each case.

Parents of incapacitated children, in common with other taxpayers will of course have benefited from the tax policy pursued since 1987 which has resulted in the standard rate being reduced from 35 per cent to 27 per cent and the top rate from 58 per cent to 48 per cent while the standard band has been widened by 74 per cent.
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