Dáil Éireann debate -
Tuesday, 19 Apr 1994

Vol. 441 No. 5

Written Answers. - Tax Liability.

Noel Ahern

Question:

97 Mr. N. Ahern asked the Minister for Finance the estimated number of pensioners who will be drawn into the tax net or have their taxes increased due to the failure to extend to pensioners the same generous improvements given to all others.

Minister for Finance (Mr. B. Ahern)

I would like to point out, in the first instance, that persons 65 years of age and over receive special treatment under the tax system. The income tax exemption limits for pensioners are significantly higher than those which apply to the generality of taxpayers. These currently stand at £4,100 single-£8,200 married for those pensioners aged 65 years and over and £4,700 single-£9,400 married at 75 years and over. There is also an addition to the basic personal allowances of a special age allowance of £200 single-£400 married.

None of the tax changes in the budget excluded pensioners. Pensioners, depending on the level of their income, will have benefited from the improved personal allowances, the reduction in the marginal relief rate of tax, the extension of the standard rate band, the abolition of the 1 per cent levy and the new income threshold for the Health and Employment and Training levies. It is possible, however, that some pensioners will have entered the tax net due to increases in their pensions or other income. Estimates of the numbers involved are not available.