Dáil Éireann debate -
Tuesday, 25 Jun 2002

Vol. 553 No. 5

Written Answers. - Tax Yield.

Paul McGrath

Question:

104 Mr. P. McGrath asked the Minister for Finance the amount of money in 2001 which accrued to his Department by way of the Government levy on insurance policies; the amounts collected from the different sectors of the insurance industry, for example, motor, life, business and so on; and the way in which these funds are spent. [14513/02]

Minister for Finance (Mr. McCreevy)

A levy under the stamp duty code was first imposed on insurance premiums – both life and non-life – in 1982. Both levies were imposed initially at a rate of 1% of gross premiums. The life levy was increased on a number of occasions up to 3%. It was abolished with effect from 1 January 1993.

The non-life levy remained at 1% until 1993 when it was increased to its current rate of 2%. The non-life levy is imposed on almost all non-life insurance premiums including motor insurance, the exceptions being re-insurance, voluntary health insurance, marine, aviation and transit insurance and export credit insurance.

The yield from the 2% non-life levy in 2001 was €69.11 million. Insurance companies pay this levyen bloc to the Revenue Commissioners and therefore there is no breakdown of the total yield attributable to each chargeable category. The levy was introduced to broaden the stamp duty base, thereby raising additional revenue. The yield from the 2% levy, as part of taxation receipts generally, contributes towards funding the requirements of the Exchequer such as funding public services.