I propose to take Questions Nos. 213, 214 and 215 together.
It is assumed that what the Deputy requires are the numbers in each category and the percentage they represent of all PAYE income earners on the tax record.
I am advised by the Revenue Commissioners that the information requested by the Deputy is as follows:
Percentage of PAYE earners in different tax bands 1994/95 to 2004
Tax Year
|
Exempt
|
Standard rate#
|
Higher rate
|
|
%
|
Numbers
|
%
|
Numbers
|
%
|
Numbers
|
1994/1995
|
24.61
|
274,200
|
46.16
|
514,300
|
29.23
|
325,700
|
1995/1996
|
23.20
|
267,500
|
47.38
|
546,300
|
29.42
|
339,200
|
1996/1997
|
23.96
|
289,200
|
47.10
|
568,600
|
28.94
|
349,400
|
1997/1998
|
24.64
|
319,700
|
46.09
|
598,000
|
29.27
|
380,000
|
1998/1999
|
24.57
|
340,700
|
44.35
|
615,100
|
31.09
|
431,200
|
1999/2000
|
27.36
|
399,000
|
38.71
|
564,600
|
33.93
|
494,900
|
2000/2001
|
28.02
|
436,000
|
40.50
|
630,200
|
31.48
|
489,800
|
2001†
|
29.35
|
464,200
|
40.24
|
636,500
|
30.41
|
481,200
|
2002*
|
32.85
|
530,200
|
40.17
|
648,200
|
26.98
|
435,400
|
2003*
|
32.83
|
541,600
|
37.13
|
612,500
|
30.05
|
495,700
|
2004*
|
33.77
|
563,800
|
33.29
|
555,900
|
32.94
|
549,900
|
# Includes taxpayers benefiting from marginal relief
† Short tax "year" from 6 April 2001 to 31 December 2001.
* Provisional and likely to be revised.
As will be seen from the preceding table, the percentage of those in the exempt category in the PAYE sector who are outside the tax net has increased significantly, for example, by over 45% since 1995-96 — from 23.2% of all PAYE income earners to 33.8% now. In numerical terms, the change has been even more notable. The figures are 267,500 in 1995-96 to 563,800 now, a provisional figure — an increase of over 110%.
For the years prior to 2002, the exempt figures shown in the above table are actual historical figures. For the years 2002 to date, they are estimates from the Revenue tax forecasting model of the numbers likely to be tax exempt using actual data for the year 2001 adjusted as necessary for income growth for the year in question.
Since 1995-96 also, the number of PAYE earners on the tax record increased significantly by over 516,000 from 1,153,000 to 1,670,000 now, provisional figure, an increase of almost 45%. This increase reflects the significant growth in employment over the period. In the same period, the higher rate of tax was reduced from 48% to 42% and the standard rate from 27% to 20%, thus reducing the tax burden greatly on all those in the tax net. The percentages in the table are expressed in terms of the numbers of all PAYE income earners on the income tax record. It should be noted that a married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.