Written Answers. - Tax Rates.

Michael Ahern

Question:

158 Mr. M. Ahern asked the Minister for Finance the current cost of the proposal that 80 per cent of personal income be taxed at 25 per cent and 20 per cent at 40 per cent. [17016/96]

It is presumed that the question relates to the cost of confining 80 per cent of income taxpayers to the standard rate of tax and of reducing the standard and top rates of tax from 27 per cent and 48 per cent to 25 per cent and 40 per cent, respectively.

On this basis, I am informed by the Revenue Commissioners that the full year cost, estimated by reference to the income tax year 1997-98, would be £882 million. This estimate is provisional and is likely to be revised.