Written Answers. - Insurance Premium Levy.

Denis Naughten

Question:

505 Mr. Naughten asked the Minister for Finance the number of years the 2 per cent levy has been placed on all motor insurance premia; the reason this levy was placed on premia; the funds raised annually from this levy; the total funds raised to date from this levy; the purpose of the fund; and if he will make a statement on the matter. [1625/99]

I am informed by the Revenue Commissioners that a levy of 1 per cent was imposed on certain insurance premia in 1982. The levy was increased to 2 per cent in 1993. This levy is not confined to motor insurance premia. It is imposed on almost all non-life insurance premia, the exceptions being reinsurance, voluntary health insurance, marine, aviation and transit insurance and export credit insurance. The levy was introduced to broaden the stamp duty base, thereby raising additional revenue.

From 1982 until 1990, the data is only available for the levies arising on both life and non-life premiums. These are as follows:

Year

Yield

£m

1982

0.82

1983

8,60

1984

14.82

1985

17.12

1986

15.20

1987

24.35

1988

29.74

1989

38.68

1990

35.27

From 1991 to 1998 the yield from stamp duty on all non-life, insurance premia (including motor premia), are as follows:

Year

Yield

£m

1991

9.97

1992

11.70

1993

16.15

1994

25.21

1995

29.32

1996

28.43

1997

30.45

1998

33.33