Tony Gregory
Question:227 Mr. Gregory asked the Minister for Finance the cost to the Exchequer in 2002 of the reduction in corporation tax provided in the December 2001 budget. [22818/03]
Written Answers. - Tax Code.
Tony Gregory
Question:228 Mr. Gregory asked the Minister for Finance the projected cost to the Exchequer in 2003 of the reduction in corporation tax provided in the budgets of 2001 and 2002. [22819/03]
I propose to take Questions Nos. 227 and 228 together.
The full year cost of reducing the standard rate of corporation tax from 20% to 16%, as indicated in the December 2001 budget and provided for by section 71 of the Finance Act 1999, is estimated by the Revenue Commissioners at €329 million. It is tentatively estimated that the portion of this full year cost affecting the 2002 calendar year, including the impact on the first instalment of preliminary tax, is approximately €65 million. It is tentatively estimated that the portion of this full year cost affecting the 2003 calendar year is approximately €264 million.
The full year cost of reducing the standard rate of corporation tax from 16% to 12.5%, as indicated in the December 2002 budget and provided for by section 71 of the Finance Act 1999, is estimated by the Revenue Commissioners at €305 million. It is tentatively estimated that the portion of this full year cost affecting the 2003 calendar year, including the impact on the first instalment of preliminary tax, is approximately €100 million.