Dáil Éireann debate -
Wednesday, 2 Nov 1994

Vol. 446 No. 6

Written Answers. - Taxation Statistics.

Michael McDowell

Question:

65 Mr. M. McDowell asked the Minister for Finance the full year cost in 1994 of allowances and reliefs (details supplied); and the estimated full year gain to the Exchequer of allowing the allowances available in 1994 at the standard 27 per cent rate only. [2533/94]

Minister for Finance (Mr. B. Ahern)

Following is the information requested in so far as it is available:—

Cost to Exchequer of certain income tax allowances and reliefs.

Allowance or relief	Full Year Cost (Provisional for 1994-95)
	£m
Single(1)	411.5
Married(1)	756.9
One Parent Family	14.0
Widowed (including widowed bereavement allowances)(1)	57.1
PAYE Allowance	251.4
PRSI Allowance	55.5
Dependent Relative	1.3
Medical Insurance	66.8
Permanent Health Benefit	2.2
Person employed to care for incapacitated taxpayer	0.2
Life Assurance	Abolished
Blind Allowance	0.2
Health Expenses	6.2
Exemption limits including general, child addition and aged(2)	79.2
Retirement Annuities (Self- Employed)	25.8
Rent Paid in Private Tenancies	1.3

(1)The figures show the aggregate cost of (a) the allowances granted to individuals effectively liable to tax and (b) the allowances which would have been accorded to individuals if the exemption limits did not apply to them.

(2)Includes the cost of marginal relief for taxpayers whose incomes are not greatly in excess of the exemption limits. It excludes the cost of the exemption limits where they do not exceed the level of the allowances indicated at (b) in footnote(1).

The gain to the Exchequer from confining these reliefs to the standard rate of 27 per cent is estimated to be of the order of £390 million. This estimate is tentative and is subject to a margin of error.

The estimate of yield does not include any yield from confining medical insurance relief to the standard rate as provision has already been made in the 1994 Finance Act for this change to take effect on a phased basis from 6 April, 1995.