Dáil Éireann debate -
Tuesday, 8 Apr 2003

Vol. 564 No. 5

Written Answers - Tax Code.

John Bruton

Question:

42 Mr. J. Bruton 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. [9666/03]

Minister for Finance (Mr. McCreevy)

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 signifi cantly 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 can be seen 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.