Written Answers. - Health Levy.
Richard Bruton
Question:
98
Mr. R. Bruton
asked the
Minister for Finance
the thresholds and exemptions which apply for the health levy; the rate of the health levy and the revenue raised in 2002; and the changes planned in respect of each of these in 2003.
[23028/02]
The current threshold above which the health contribution is payable is €356 per week or €18,512 per year. Once the threshold is exceeded, the contribution is payable on all reckonable income unless such income or the person in receipt of same falls within an exempt category, the main examples of which are set out below. Provision for exemptions from liability for the health contribution is a matter primarily for the Minister for Health and Children, however, all persons over the age of 16 years are liable to pay the health contribution on their reckonable earnings, emoluments or income subject to the following main exemptions:
(i) income at or below the threshold of €356 per week or €18,512 per year;
(ii) individuals in receipt of the following social welfare payments-pensions (as provided for by the Health Contributions Act, 1979, as amended by section 24 of the Social Welfare Act, 1995):
(a) survivor's pension;
(b) widow's (non-contributory) pension;
(c) deserted wife's benefit;
(d) deserted wife's allowance;
(e) death benefit by way of a pension;
(f) lone parent's allowance (now the one-parent family payment);
(g) a payment corresponding to a pension at (a) or (e) above from an EU member state;
(h) individuals who qualify for a medical card in the State;
(i) individuals who qualify for the equivalent of a medical card in another EU member state;
(iii) payments under the Social Welfare Acts.
It should also be noted that maintenance payments are allowed as a deduction to the payer before computing the health contribution payable. In relation to (i) above, where an individual pays the health contribution during the year because his or her weekly income exceeds the weekly ceiling, he or she can claim a refund of any health contribution deducted if his or her total income for the year does not exceed the relevant annual ceiling.
For the current tax year the health contribution is charged at a rate of 2% and it is estimated that in 2002 the health contribution will yield €739 million as an appropriation-in-aid to the Health and Children Vote. In relation to the last part of the Deputy's question, I am sure he will appreciate that it is not the general practice of the Minister for Finance to comment in the run up to it on changes which may or may not be included in the annual budget.
