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Dáil Éireann debate -
Tuesday, 25 Feb 2003

Vol. 562 No. 1

Written Answers - Tax Code.

Jim O'Keeffe

Question:

125 Mr. J. O'Keeffe 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. [5436/03]

The 2% stamp duty levied 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 of these it is levied at a significantly higher rate than in Ireland, typically between 9% and 15%.

The levy applicable to insurance premiums relates to most types of non-life business. The yield since 1997 is as follows:

Year

Yield

€m

1997

38.66

1998

42.32

1999

48.12

2000

56.97

2001

69.11

2002

87.16

As the Deputy will note from the yield, 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.
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