Dáil Éireann debate -
Wednesday, 19 Mar 1997

Vol. 476 No. 5

Written Answers - Tax Exemption Limits.

Noel Ahern

Question:

68 Mr. N. Ahern asked the Minister for Finance if he is committed to maintaining the exemption limit in view of the fact that an old age pensioner couple on the tax exemption scale who pay tax at the marginal rate of 40 per cent, had their tax allowance increased by only £200 from £9,000 to £9,200 this year, whereas a similar couple on higher income received a tax allowance increase of £500 personal allowance plus £400 age allowance; if he will make an adjustment in the Finance Bill in this regard; and if he will make a statement on the matter. [7608/97]

Minister for Finance (Mr. Quinn)

I have no plans to discontinue the income tax exemption limits for those aged 65 and over. This system reduces or eliminates the income tax burden for many pensioners on low and moderate incomes. It is also, however, necessary to provide additional relief to those elderly paying income tax at the standard and higher rates. The income tax age allowance was therefore increased substantially this year — by £200 single/£400 married — the first time since 1986. The age related exemption limits have been increased each year by varying amounts in that period. I believe that the increase in the age allowance this year is a reasonable policy to pursue and is in line with a commitment in Partnership 2000.