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Dáil Éireann debate -
Thursday, 17 Oct 1996

Vol. 470 No. 3

Written Answers. - Tax Issues.

Ivor Callely

Question:

67 Mr. Callely asked the Minister for Finance the average industrial take home pay after deduction of income tax and PRSI of a single person, a married couple and a separated person; the likely tax reforms in 1997 and 1998; the priority he will give to tax reform in 1997; and if he will make a statement on the matter. [18887/96]

The tax treatment of people can, as the Deputy is aware, vary depending on individual circumstances. However, on the basis that the average industrial wage in 1996 will be of the order of £14,500 and assuming that only the basic personal and PAYE allowances are availed of, the take home pay, after deduction of income tax, PRSI and levies, of the categories of people referred to would be as set out in the following table:

Single Person: £10,275;

Married Person: £11,337;
Separated Person: £10,275
The married person example assumes no dependent children and that only one spouse is in employment. The separated person example also assumes no dependent children and that he or she is assessed for tax as a single person. Obviously, if these assumptions were to change, it may result in different levels of taxation and consequently of take home pay to those indicated above.
In relation to future tax reform I remind the Deputy that the Government's policy in relation to taxation is set out in theProgramme for Renewal. The programme stresses the need to reform the tax system, in particular to relieve the tax and PRSI burden on those with low incomes and especially those with families. Tax reform will favour the incentive to work, tackle the poverty trap, aim to reduce the tax wedge and encourage enterprise development. The Deputy may be assured that all relevant options for tax reform are examined in the context of budgetary preparations.
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