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Universal Social Charge Payments

Dáil Éireann Debate, Thursday - 15 November 2012

Thursday, 15 November 2012

Questions (86)

Seán Fleming

Question:

86. Deputy Sean Fleming asked the Minister for Finance the revenue that would be raised from extending the universal social charge to social protection payments, excluding child benefit, that are currently exempt; and if he will make a statement on the matter. [50714/12]

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Written answers

To estimate the potential yield from applying the universal social charge (USC) to social protection payments it would be necessary to identify certain details in respect of each recipient of social protection payments such as the individual amount of these payments received, the amount of any other income potentially liable to USC, the age of each individual and whether there was an entitlement to a medical card. This information would be essential to determine whether a charge to USC applied or not at individual level, and at what rate if it did. It is possible in many cases that the rate could be low or even nil. In addition, as the Deputy will be aware, a number of social protection payments would be below the current exemption threshold for USC which is currently €10,036 per annum. I am informed by the Revenue Commissioners that as they do not maintain such a database of social protection payments there is no basis on which an estimate of the yield from the change mentioned in the question could be compiled.

By way of illustration, if for example a 1 per cent levy was imposed on social protection payments, the full year yield to the Exchequer would be €180 million on the basis that the estimated provision for such payments in 2012, excluding child benefit, is approximately €18 billion. The figure of €18 billion excludes administration and other administration expenses but may include certain non-departmental operational costs. The estimate of Exchequer yield assumes that there is no exemption threshold, allowance or personal reliefs that could be used to offset against some of the levy.

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