Pearse Doherty
Question:158. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be raised for the Exchequer if capital gains tax was increased to 35%. [54089/12]
View answerDáil Éireann Debate, Tuesday - 4 December 2012
158. Deputy Pearse Doherty asked the Minister for Finance the revenue that would be raised for the Exchequer if capital gains tax was increased to 35%. [54089/12]
View answerI am advised by the Revenue Commissioners that the full year yield to the Exchequer, estimated in terms of expected 2013 gains, from increasing the CGT tax rate from 30% to 35% could be in the region of €80 million. This figure includes corporate gains. However, this estimate assumes no behavioural changes on the part of taxpayers, and increases in rates may have a significant behavioural impact and may not produce a corresponding increase in tax yield. In current economic conditions any estimate of additional yield must be treated with caution. In addition, increasing the rate could, in theory, lead to a reduction in yield from the tax.