Dáil Éireann debate -
Wednesday, 25 Jan 1995

Vol. 448 No. 1

Written Answers. - Excise Duties.

Michael Ahern

Question:

38 Mr. M. Ahern asked the Minister for Finance the cost to the Exchequer for the remainder of the year and in the full year of a 1p change in excise duties on petrol, spirits and tobacco, a 1 per cent reduction in the 48 per cent tax rate, a 1 per cent reduction in the 27 per cent tax rate and a 1 per cent reduction in the standard rate of VAT. [1586/95]

Minister for Finance (Mr. Quinn)

As the information sought by the Deputy is of a statistical nature, I propose to circulate it in tabular form.

TABLE

Taxhead	Change	Estimated effect on the Exchequer
1995	Full Year
		£m	£m
Excise	Petrol: 1p per litre	9.8	11.1
	Spirits: 1p per ½ glass of spirits	2.3	2.5
	Tobacco: 1p per 20 Cigarettes	2.1	2.5
Income Tax	1 per cent reduction in the 27 per cent tax rate Cost	42.9	72.1
	1 per cent reduction in the 48 per cent tax rate Cost	21.2	38.2
VAT	1 per cent reduction in standard rate Cost	61.0	98.0

Notes:

(1) The figures shown as the effects on the Exchequer arising from changes in the Excise duties on petrol, spirits and tobacco can be taken as either yields to the Exchequer from increases, or costs from decreases, at the rates mentioned.

(2) The figures shown for Excise duties are based on the changes in question taking effect from early February, 1995. Changes in Income Tax rates are assumed to be effective from 6 April, 1995 and, for VAT, the change-over date assumed is 1 March, 1995.