Vol. 492 No. 7
195 Mr. N. Ahern asked the Minister for Finance the estimated annual cost if tax relief was given to fees for postgraduate degree courses; if tax relief will be allowed in view of the cost to the students involved and the qualifications gained which help the economy; and if he will make a statement on the matter. [15228/98]
It is understood from the Department of Education and Science that there are about 9,100 postgraduate degree students in the university sector. Assuming an average fee of £2,000 per annum per student and that the relief is given at the standard rate of taxation, then the estimated cost of tax relief for postgraduate university degree students could be as high as £4.4 million. However, this cost is overstated because some of these students would receive, for example, a higher education grant in respect of their fees and others could have their fees paid by their employers. Estimates of the numbers involved in these categories are not available.
The Deputy will appreciate that there would also be pressure to include non-degree postgraduate students, postgraduate students in the non-university sector and students studying, for example, for professional qualifications in the scope of any tax relief.
As Minister for Finance I receive numerous requests, many from very worthwhile causes, for the introduction of new tax reliefs or the extension of existing ones. Tax reliefs by their very nature narrow the tax base and make general reform of the tax system that much more difficult. The reductions I made in income tax, corporation tax and capital gains tax were made possible, in part, by restricting certain existing reliefs.
