Dáil Éireann debate -
Tuesday, 20 Nov 2001

Vol. 544 No. 3

Written Answers. - Tax Credits.

Paul McGrath

Question:

266 Mr. McGrath asked the Minister for Finance the estimated cost to the Exchequer of increasing tax credits to a level that will remove workers on the minimum wage from paying tax; and the number of taxpayers who would be removed from the tax net by such an increase. [28769/01]

Minister for Finance (Mr McCreevy):

I am informed by the Revenue Commissioners that the full year costs to the Exchequer, estimated by reference to 2002 incomes, of the change mentioned by the Deputy would depend on whether this is done by increasing the personal credits or the PAYE credit or some combination of the two.

If the personal credits were used, the cost would be of the order of £676 million, 858 million. This measure would remove some 143,400 taxpayers from the tax net.

If the PAYE credit alone were used, the cost would be in the region of £462 million, 587 million, and some 100,900 taxpayers would be removed from the tax net.

These costings are based on a minimum wage of £4.70 per hour – 5.97 – per hour over a 39 hour week, for 52 weeks. These figures are provisional and are likely to be revised.