Dáil Éireann debate -
Wednesday, 29 May 1996

Vol. 466 No. 2

Written Answers. - Taxation and PRSI Levels.

Jim Mitchell

Question:

60 Mr. J. Mitchell asked the Minister for Finance if his attention has been drawn to the fact that a major financial institution is unable to transfer staff members between Northern Ireland and the Republic in view of the higher levels of income tax and PRSI prevailing in this State; the total tax that is payable by a married worker, one spouse working with three children, on a salary of £20,000, £25,000, £30,000, £40,000 and £50,000 per annum in Northern Ireland and in the Republic; the take home pay in each case after tax, PRSI and social insurance; the corrective steps, if any, he proposes to take in this matter; and, if so, the timetable involved. [11233/96]

Minister for Finance (Mr. Quinn)

I am not aware of the example referred to in the question. The information requested in relation to total tax deductions and take home pay for a married worker, one spouse working with three children, in Northern Ireland and in the Republic is as follows:

Gross Salary	Total Tax (including income tax, PRSI/NIC and levies as appropriate)	Take Home Pay
Republic	N.I.	Republic	N.I.
IR£	IR£	IR£	IR£	IR£
20,000	5,074	5,264	14,926	14,736
25,000	6,709	6,761	18,291	18,239
30,000	9,255	8,215	20,745	21,785
40,000	14323	12,215	25,677	27,785
50,000	19,373	16,215	30,627	33,785

Note: (1) All figures are expressed in IR£ using exchange rate of IR£ = 1.03 Stg.

(2) Assumes normal personal allowances only.

The tax burden on people in employment is of particular concern to the Government. Consequently, in my last two budgets I have introduced a number of measures aimed at reducing the income tax and PRSI burden. These measures included increasing personal allowances and exemption limits, widening the standard band and introducing a new weekly PRSI-free allowance which stands at £80 per week for most workers. I propose, within responsible budgetary parameters, to make further progress in this regard in the 1997 budget.