Written Answers. - Tax Yields.
Seamus Brennan
Question:
53
Mr. S. Brennan
asked the
Minister for Finance
the actual and expected tax yield from 27 per cent taxpayers and 48 per cent taxpayers in each of the years 1994/1995 and 1996/1997; the actual and expected revenue from PAYE sources in each of the two years; the total tax forgone by all existing personal reliefs and allowances; and the total PRSI revenue from each of these two years.
[2816/96]
The full year yield of income tax to the Exchequer arising from taxpayers liable to tax at the tax rates prevailing in the income tax years 1994-95 and 1995-96, the latest available, is estimated as follows:
|
Marginal Rate of Taxpayers
|
1994/95
|
1995/96
|
|
Yield to the Exchequer¹
|
Yield to the Exchequer¹
|
|
£m
|
£m
|
|
27 per cent (including Marginal Relief)
|
836
|
964
|
|
48 per cent
|
2,950
|
3,161
|
The tax amounts attributable to taxpayers liable at the marginal rate of 48 per cent include some £1,179 million and £1,280 million payable at the 27 per cent rate for 1994-95 and 1995-96 respectively. The corresponding information is not yet available for the income tax year 1996-97.
The relevant information available on the income tax yield under the PAYE system are figures of the net receipt of tax in the calendar year 1994 and the post-budget estimate of yield in the calendar year 1996. The net receipt of income tax under PAYE² was £3,259 million in 1994 (excluding the yield in 1994 under the 1993 tax amnesty) and is estimated to be £3,719 million in 1996.
The full year cost to the Exchequer of personal income tax reliefs and allowances³ is estimated at £1,787 million in the income tax year 1994-95 and £1,981 million in 1996/97.
Information on PRSI receipts is compiled on a calendar year basis. Total PRSI receipts was £1,685 million in 1994 and is estimated to be £1,720 million in 1996.
Notes
(1) The figures shown as the yield to the Exchequer are the estimated ultimate net yields from the tax assessed for the years 1994-95 and 1995-96, whether actually collected in those years or later, and include the yield from taxation of declared interest income.
(2) The figures cover more than income tax on ordinary wages and salaries. They include tax paid by directors of close companies who are akin to the self-employed as well as tax on "other income" of employees such as rent and other investment income. They also include the tax paid under PAYE on the income from employment of farmers and other self-employed individuals.
(3) The personal reliefs and allowances included in the estimates of cost are the exemption limits, the married, single and widowed allowances together with the associated one-parent family allowance, the PAYE allowance and the PRSI allowance where appropriate.
