Vol. 489 No. 2
119 Mr. N. Ahern asked the Minister for Finance if he will give an estimate of the amount collected annually from retired PAYE workers under the youth employment training levy; if his attention has been drawn to the objections and resentment caused by this measure; if he will give details of its history and justification; and if he will make a statement on the matter and on the demands to have it abolished. [7776/98]
I am informed by the Revenue Commissioners that they estimate that the amount that will be collected in the forthcoming tax year, 1998-9, from all people aged 65 or over in relation to the employment and training levy will be around £10.7 million. There is no estimate available in respect of pensioners on their own.
The employment and training levy was introduced in the Youth Employment Agency Act, 1981, and is charged at a rate of 1 per cent on a person's total income from all sources with only a few exceptions, for example, social welfare payments including social welfare pensions. However, the 1994 budget introduced a low income exemption threshold for the levies of £173 per week or £9,000 per annum. This has been increased each year since and now stands at £207 per week — £10,750 per annum — following the budget.
The current arrangements in respect of the employment and training levy are more favourable to pensioners than most taxpayers because the levy is not applicable to their social welfare pension. Therefore, the levy will only apply where income from other sources is in excess of £10,750 per annum. The existing arrangement ensures that most pensioners on low and middle incomes are exempt from the levy. Consequently, I do not intend to fully exempt occupational pensions from the levy, but I can confirm that the threshold for the levies will continue to be reviewed.
