Vol. 492 No. 1
107 Mr. Haughey asked the Minister for Finance the date of the introduction of the 1 per cent youth employment levy and the reason therefor; the proposals, if any, he has in this regard; if he will exempt retired people living on occupational pensions from this levy; and if he will make a statement on the matter. [13543/98]
The employment and training levy was introduced pursuant to the provisions of the Youth Employment Agency Act, 1981. The levy, which was introduced with effect from 6 April 1982, applies at a rate of 1 per cent on a person's total income from all sources with only a few exceptions, e.g. social welfare payments. The total income of medical card holders and recipients of social welfare survivor's and widow's pensions, lone parent's allowance and deserted wife's benefit-allowance are exempt from the levy. Furthermore, 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 last budget.
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.
