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Dáil Éireann debate -
Thursday, 17 Dec 1998

Vol. 498 No. 6

Written Answers - Income Tax.

Ivor Callely

Question:

107 Mr. Callely asked the Minister for Finance the net receipt of income tax in 1999 under PAYE, farmers and self-employed; the scope, if any, there is to reduce the burden of income tax that the PAYE worker contributes; and if he will make a statement on the matter. [28140/98]

The post-budget estimate for income tax payable by PAYE, farmers and other self-employed in 1999 is as follows:

Tax Head

1999 Post Budget Estimate

£ million

PAYE(¹)

4,996

Farmers(²)

66

Other self-employed(³)

767

Notes:
(¹) This figure is based on income tax collected through the PAYE mechanisms which covers more than income tax on ordinary wages and salaries. It includes tax paid by directors of close companies who are akin to the self-employed as well as tax on "other income" of employees such as rent and other investment income. It also includes the tax paid under PAYE on the income from employment of farmers and other self-employed individuals.
(²) Income tax on farming profits is collected with schedule D tax generally and figures of tax payments by farmers are, to some extent, estimated.
(³) This heading includes tax paid on income from trades and professions, other than farming, together with tax paid on other income such as rent and other investment income. The figures also include relatively small amounts of tax resulting from direct assessments under schedule E on employees. This tax is collected with tax from the self-employed and is not separately identified. Included in this figure is witholding tax deducted under the provisions of Chapter III of Finance Act, 1987 from payments for professional services.
The amounts paid by each sector must be seen in the context of the relative numbers of taxpayers in the PAYE and self-employed, including farming sectors.
The Government is committed to reducing the burden of personal income tax. In my first budget, in December last year, I introduced personal tax reliefs with a full year cost of £517 million. In budget 1999, earlier this month, I introduced further personal tax reduction amounting to £581 million. I propose to continue to reduce the burden of personal taxation in further budgets, as resources permit, in keeping with the commitments given in the Government's policy programme, An Action Programme of the Millennium.
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