Wednesday, 2 October 2013

Questions (101)

Michael McGrath

Question:

101. Deputy Michael McGrath asked the Minister for Finance if he will provide in tabular form the carry over to Budget 2014 in respect of the local property tax, changes to the maximum allowable pension fund for tax relief purposes, carbon tax, capital gains tax, capital acquisitions tax, PRSI and other measures; and if he will make a statement on the matter. [41340/13]

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Written answers (Question to Finance)

Taxation provisions included in the Finance Act 2013 and the Finance (Local Property Tax) Act 2012 in relation to measures set out in Budget 2013 will result in an estimated carryover of around €300 million in 2014. There was also carryover from changes to PRSI in Budget 2013. Measures in relation to the maximum allowable pension fund at retirement to be introduced in 2014 were also announced in Budget 2013. A cross-Departmental Working Group of officials has been established to examine, among other things, the changes required to the existing arrangements governing the maximum allowable pension fund at retirement (the Standard Fund Threshold) and other potential alternative approaches for achieving the commitment. The Working Group has also sought views from various interested parties as part of the examination of options for delivering on the Budget commitment. This Working Group is also developing estimates of the likely yield from the changes. The result of this work will be incorporated into the budgetary arithmetic and will be included as part of the Budget 2014 measures. Until then the table sets out the remainder of the estimated carryover from Budget 2013.

Budget 2013 carryover

€m

Local property tax

250

Carbon tax

16

Capital gains tax

-1

Capital acquisitions tax

12

Income tax

35

USC

13

Employment and investment incentive

-25

Film relief (from 2016)

20

Auto-diesel excise relief for road hauliers

-35

3 year relief for start-up companies

-10

Real estate investment trusts (REITS)

-12

Increase in the VAT accounting threshold

20

Reduction in farmers flat rate addition

3

DIRT and life assurance exit taxes

14

PRSI

53

Total

353