Dáil Éireann debate -
Wednesday, 5 Nov 1997

Vol. 482 No. 4

Written Answers - Tax Rates.

Ruairí Quinn

Question:

89 Mr. Quinn asked the Minister for Finance the cost in a full year of the reduction of standard corporation tax from 36 per cent to 30 per cent in 1998/1999; the reductions of value added tax from 21 per cent to 19 per cent by the year 2002; the reductions of the 48 per cent rate of income tax to 45 per cent in 1998/99; and if he will make a statement on the matter. [18325/97]

Minister for Finance (Mr. McCreevy)

I am informed by the Revenue Commissioners that the estimated costs to the Exchequer of the rate changes outlined in the question are as follows:

Taxhead	Full Year
	£m
Corporation tax	139
Value added tax	253
Income tax	163

Notes:

(1) The figure shown for corporation tax is the full year cost of reducing the standard rate of 36 per cent to 30 per cent based on the forecasted yield from corporation tax in 1998-99.

(2) The figure shown for VAT is a forecast based on reducing the current standard rate of 21 per cent to 19 per cent in 1998 terms.

(3) The figure shown for income tax is a forecast based on reducing the current rate of 48 per cent to 45 per cent in 1998-99 terms.