Pearse Doherty
Question:179. Deputy Pearse Doherty asked the Minister for Finance the amount that would be raised for the Exchequer by raising the rate of capital gains tax from 33% to 40%. [20061/13]
View answerDáil Éireann Debate, Tuesday - 30 April 2013
179. Deputy Pearse Doherty asked the Minister for Finance the amount that would be raised for the Exchequer by raising the rate of capital gains tax from 33% to 40%. [20061/13]
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 33% to 40% could be in the region of €109 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.