Seán Crowe
Question:233 Mr. Crowe asked the Minister for Finance if he will consider reintroducing the old stamp duty rate on non-residential property of 6% in view of reports that 3% of the GNP is now being invested in British property. [8158/03]
Written Answers - Tax Code.
Seán Crowe
Question:234 Mr. Crowe asked the Minister for Finance the way in which he intends to reduce the capital flow of 3% of GNP out of the country, the percentage size of which is unprecedented. [8159/03]
I propose to take Questions Nos. 233 and 234 together.
This question relates to a recent newspaper report which claimed that 3% of GNP is now being invested from this State into British property. The financial flows data available is not compiled in a fashion to enable this claim to be investigated. As a member of the EU, Ireland abolished its last remaining general exchange controls after 31 December 1992. Remaining controls apply only to a limited number of countries and only in situations where UN and EU sanctions exist. It should be noted that as a small open economy with significant foreign investment, there are large capital flows in and out of the country on a continuous basis.
The post-budget estimate of the yield for 2003 from stamp duty on non-residential property is in the order of €450 million and present indications are that the yield for January 2003 is in line with the targeted projection for that month. Final figures for February 2003 are not yet available. As is the case with all taxes and duties, there is continual monitoring of the monthly target projections with the actual monthly yields throughout the year, and it is not possible at this stage to forecast what the actual out-turn for 2003 will be as compared to the post-budget estimate. I have no plans to alter the new stamp duty rates for non-residential property as set out in the 2003 budget.
Seán Crowe
Question:235 Mr. Crowe asked the Minister for Finance the amount of non-residential stamp duty tax which has been raised since the rate was increased from 6% to 9%; and the way in which this compares to the same period in 2001-2002 and 2000-2001. [8160/03]
I am advised by the Revenue Commissioners that stamp duty property yield figures are maintained on a calendar year basis to mirror the budget targets set annually and that the monthly breakdown yield figures for the non-residential element of the overall property yield figure for the years 2000 and 2001 were not maintained by the commissioners and are therefore not available for the type of comparison sought in the Deputy's ques tion. In addition, it must be said that because transitional arrangements were put in place up to 1 March 2003, the full effect of the revised rates and threshold bands would not, at this stage, have materialised.
The Revenue Commissioners have, however, advised that the stamp duty yield from non-residential property in 2002 was €316.9 million and that the projected yield for 2003, taking into account the revised rates and thresholds bands announced in the budget in December last, is in the order of €450 million. Present indications are that the yield for January 2003 is in line with the targeted projection for that month. Final figures for February 2003 are not yet available.