I propose to take Questions Nos. 134 to 137, inclusive, together.
Arising from amendments introduced on Committee Stage to the Finance (No. 2) Bill 2011 (as now passed by the Dáil), a number of changes have been made to the way in which it is proposed that the pension levy will operate. The main changes are considered necessary to facilitate a more efficient implementation and collection process for the levy and to minimize the administrative cost burden on pension funds.
There will now be a single valuation date of 30 June, in relation to most pension funds' assets, in each of the four years of the levy. There will also be a single payment date of 25 September for each of the four years as opposed to two payment dates in each year as originally envisaged. For 2011, for example, the levy for this year will have to be paid by 25 September next.
The stamp duty levy of 0.6% will be applied to the market value, on the valuation date, of assets under management in pension funds and pension plans approved under Irish tax legislation. I cannot say what the precise impact will be on individual funds or schemes, as this depends on whether and to what extent pension fund trustees and Life Offices decide to pass on the levy to individual members, given the particular circumstances of the pension funds or pension plans that they are responsible for. In that regard, I take the view that there is scope for the pensions industry to absorb the impact of the levy from fee income and charges and I have written to them in that regard. In my view, applying a temporary levy to pension fund assets is less damaging economically than raising other taxes. The pension fund levy is a reasonable temporary contribution from these funds to assist in the Jobs Initiative and to boost the economy at this time of national need.