Mary Upton
Question:150 Dr. Upton asked the Minister for Finance if he will review the circumstances whereby a person (details supplied) in Dublin 12 has two PPS numbers and is in receipt of two P60s. [21379/05]
View answerWednesday, 22 June 2005
Questions (146, 147, 148, 149)
Written answers
The Revenue Commissioners advise me that the taxpayer is entitled to two forms P60 as he has two different sources of income from the same company, namely, his pension and a part-time employment. However, he should only have one PPS number. The Department of Social and Family Affairs has informed the Revenue Commissioners that one was purged and amalgamated to the second number prior to 1992. All Department of Social and Family Affairs records are under the correct number. The correct number is now being used by the Revenue Commissioners.
Mary Upton
Question:151 Dr. Upton asked the Minister for Finance if a person (details supplied) in Dublin 12 will receive the money owed for a DIRT refund. [21418/05]
View answerThe Revenue Commissioners advise that a balancing statement together with a cheque for the amount due will issue to the taxpayer within the next ten days.
John Cregan
Question:152 Mr. Cregan asked the Minister for Finance the VAT take on various energy costs in the past five years; and if he will consider reducing VAT rates on all or some energy costs due to the significant effect these costs are having on some categories in society, for example, pensioners who use a greater proportion of their income on heat for health reasons and for being at home more. [21428/05]
View answerThe Revenue Commissioners inform me that the amount of VAT collected from the supply of energy related goods and services cannot be identified in the overall yield of VAT as the information furnished on VAT returns does not require this to be identified. However, estimates of the VAT yield on energy sources, derived from CSO statistical data, are as follows:
|
2000 |
2001 |
2002 |
2003 |
2004 |
|
|
€m |
€m |
€m |
€m |
€m |
|
|
Electricity |
85 |
89 |
98 |
117 |
128 |
|
Coal |
9 |
21 |
18 |
18 |
20 |
|
Turf/Briquettes |
9 |
14 |
13 |
12 |
13 |
|
Gas |
26 |
27 |
34 |
42 |
46 |
|
C/Heating Oil |
32 |
23 |
28 |
31 |
34 |
|
Kerosene |
24 |
34 |
42 |
48 |
53 |
|
LPG Domestic |
6 |
8 |
8 |
9 |
10 |
|
Firewood/Firelighters |
6 |
3 |
4 |
4 |
5 |
|
Total |
197 |
219 |
245 |
281 |
309 |
The supply of the above named goods is already subject to the reduced VAT rate of 13.5%. On the issue of reducing VAT rates for certain categories of consumer, the position is that the rate of VAT which applies to a particular good or service is determined by the nature of the good or service and not by the status of the consumer. There is no provision in European VAT law, with which Irish VAT law must comply, which would allow the application of a lower VAT rate for supplies to consumers of a certain age.
However, under the social welfare code, any person resident in the State, who is aged 70 or over, is entitled to the social welfare household benefits package subject to certain conditions and regardless of income or household composition. This package includes allowances for electricity, natural gas or bottled gas.
The electricity allowance covers the normal standing charge and up to 1,800 units of electricity each year. At current prices, the value of the electricity allowance to the consumer can be up to €381 per annum, inclusive of VAT at13.5%. Alternatively, if the natural gas allowance option is selected, the customer is entitled to the supply charge and up to 1,674 kwh of gas per year. The annual value of this is up to €250 per annum, inclusive of VAT at 13.5%. If the person's home is not connected to an electricity or natural gas supply, the person is entitled to 15 cylinders of bottle gas per annum at an annual value of approximately €320, inclusive of VAT at 13.5%.
John Cregan
Question:153 Mr. Cregan asked the Minister for Finance when age allowance was last increased from a tax point of view; if he will now consider same as a recognition that these are extra costs associated with living alone. [21429/05]
View answerThe age tax credit was last changed in the 2002 budget when, in the context of the changeover to the euro, its value was increased slightly to €205 per annum for a single person aged 65 or over and to €410 per annum for a married couple where one or both spouses is aged 65 or over. It is not intended to function as a tax relief for those living alone.
However, I would point out to the Deputy that the approach adopted in recent years with regard to tax policy and the elderly has been to assist such persons primarily through increases in the age exemption limits under which those aged 65 or over are exempt from income tax up to specified limits. If the income of an elderly person rises slightly above the age exemption limits, he or she can be taxed under the system of marginal relief taxation. Under this system, the exemption limits continue to be applied and the person is taxed at 40% on all income above the exemption limits until his or her level of income is such that it would be more favourable to be taxed under the normal tax system using credits and bands. A person who is taxed under the system of marginal relief pays less tax than he or she would if taxed under the normal tax system.
The age exemption limits have been increased in every budget since 1997. In the last four budgets alone, the limits have increased by almost 53%. Following budget 2005, they stand at €16,500 per annum in the case of a single or widowed person and €33,000 per annum in the case of a married couple where one spouse is or both spouses are aged 65 or over.
The Revenue Commissioners estimate that in the current tax year there are 86,000 elderly individuals and couples who are exempt from taxation. The question of further increases in the value of the age tax credit and the age exemption limits will be a matter to be considered in the context of future budgets.