Dáil Éireann debate -
Tuesday, 10 Dec 2002

Vol. 559 No. 1

Written Answers. - Tax Yield.

Gerard Murphy

Question:

87 Mr. Murphy asked the Minister for Finance the amount of money raised from the 2% insurance levy on non-life insurance policies in 1997; his estimate of the outturn for 2002; and his views on whether this should be reduced as part of the strategy to reduce insurance costs. [25624/02]

Minister for Finance (Mr. McCreevy)

The 2% levy (stamp duty) on non-life insurance premiums applies to most categories of non-life insurance business. The exceptions are re-insurance, voluntary health insurance, marine, aviation and transit insurance and export credit insurance. Most EU member states have such a tax, and in most cases it is at a significantly higher rate than in Ireland, typically 9%-15%.

The levy applicable to insurance premiums relates to most types of non-life business. The yield for each of the past five years and the estimated outturn for 2002 is as follows:

Year	Yield (€m)
1997	38.66
1998	42.32
1999	48.12
2000	56.97
2001	69.11
2002 (estimated)	87.00

As you can see from the yield, it is clear that this levy is a significant source of revenue to the Exchequer, and I have no plans to reduce it.

The Tánaiste and Minister for Enterprise, Trade and Employment has responsibility for the insurance industry. On 25 October 2002, she announced a programme for fundamental insurance reform. The programme reflects the commitments given in An Agreed Programme for Government and comprises a comprehensive set of inter-related measures designed to improve the functioning of the Irish insurance market and to reduce costs all round.