Dáil Éireann Debate, Tuesday - 7 May 2013
157. Deputy Brendan Smith asked the Minister for Finance the position regarding the levy imposed on private pension funds; the date on which this commenced; the length of time it will be in place; the levies that have been collected to date; if the legislation was tested by the courts; if there is a firm committment to end this levy; and if he will make a statement on the matter. [21546/13]
View answerThe pension fund levy applies at a rate of 0.6% per annum to the market value, on the valuation date, of assets under management in pension funds and pension plans approved under Irish tax legislation. The levy will operate for a period of 4 years only (2011 to 2014) and the legislative provisions giving effect to the levy (section 4 of Finance (No 2) Act 2011) were specifically drafted to reflect this.
The moneys raised from the pension fund levy are being used to pay for the Government’s Jobs Initiative introduced in May 2011. The measures introduced as part of the Jobs Initiative include a new 9% VAT rate on certain activities, the halving of the lower rate of PRSI and small amounts of additional current and capital expenditure.
The implementation of a jobs and growth strategy is a key priority of the Government. The measures announced in the Jobs Initiative are aimed at assisting in employment generation – providing opportunities for those who are out of work, to restore public morale and confidence in the economy and encourage spending by consumers.
I am informed by the Revenue Commissioners that receipts to date from the levy amounted to €463 million in 2011 and €483 million in 2012. This is broadly in line with the amounts anticipated to be collected in those years. There is no yield from the levy as yet in respect of 2013. The deadline date for payment of the levy in 2013 is 25 September next.
I wished to be satisfied that the legislative provisions giving effect to the pension fund levy do not pose any legal difficulties. I received legal advice in that context.
I confirmed in my Budget 2013 Speech that the levy will not be renewed after 2014.
