John Perry
Question:49 Mr. Perry asked the Minister for Finance his views on whether the State should continue to add to the cost of insurance through the insurance levy of 2%; and if he will make a statement on the matter. [30151/03]
Written Answers. - Insurance Levy.
As the Deputy may be aware, the 2% insurance levy is imposed on almost all non-life insurance premia, including car insurance. The exceptions are re-insurance, voluntary health insurance, marine, aviation and transit insurance and export credit insurance.
The purpose of the non-life levy is to broaden the stamp duty base. It is a significant source of revenue to the Exchequer and is modest compared with that in other EU member states, where it is generally levied at a significantly higher rate than in Ireland, typically between 9% and 15%. I have no plans to abolish this levy, which yielded about €87 million in 2002.
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 the Agreed Programme for Government and comprises a comprehensive set of interrelated measures designed to improve the functioning of the Irish insurance market and to reduce costs all round.
Question No. 50 answered with Question No. 18.