Dáil Éireann Debate, Thursday - 10 October 2013
54. Deputy Tom Fleming asked the Minister for Finance the amount that has been raised in the 0.6 % levy in private pensions to date; the amount that has been invested in job creation to date; if any outstanding income that has not been invested in job creation will be reimbursed to the private pension sector; if private pensions will be safeguarded post 2014; and if he will make a statement on the matter. [42796/13]
View answerA temporary 0.6% stamp duty levy on pension fund assets was introduced in the Finance (No.2) Act 2011 as a measure to fund the Jobs Initiative. This was estimated to yield €470 million a year for 4 years. The Revenue Commissioners have advised me that receipts 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. €517 million was collected in 2013 to date, due to an increase in the capital value of pension funds.
The table below shows the key revenue and expenditure measures in the Jobs Initiative as announced, to support the protection of existing jobs and the creation of new ones. The details of the expenditure on these measures are a matter for my colleague the Minister for Public Expenditure and Reform, Brendan Howlin T.D.
|
- |
2011 (€m) |
2012 (€m) |
2013 (€m) |
2014 (€m) |
Total |
|
Revenue |
|||||
|
Air Travel Tax |
-15 |
-90 |
-105 |
-105 |
-315 |
|
VAT |
-120 |
-350 |
-350 |
-60 |
-880 |
|
PRSI |
-95 |
-208 |
-201 |
-33 |
-536 |
|
Pension Funds Levy |
+470 |
+470 |
+470 |
+470 |
+1,880 |
|
Expenditure (Additional) |
-40 |
-30 |
-30 |
-30 |
-130 |
|
Net Benefit (+) / Loss (-) |
+201 |
-208 |
-216 |
+242 |
+19 |
It should be noted that the proposed suspension of the Air Travel Tax, at an estimated cost of €15 million in 2011, €90 million in 2012 and €105 million in a full year, was conditional on the airlines increasing passenger numbers by restoring previously cancelled routes and by creating new routes. Negotiations with the airlines were not successful and the Minister for Transport Tourism and Sport, Mr Leo Varadkar T.D., advised against reducing the Air Travel Tax to zero.
On the subject of outstanding income, I wish to advise the Deputy that it will only be when the levy has ended and the accompanying expenditure and revenue measures have also ceased that it will be possible to analyse the situation. At any given point before then, it would not be surprising if the income and expenditure did not match.
Finally regarding post 2014, I will not comment on this at this juncture, rather a decision will be made at the appropriate time in light of updates to fiscal and economic forecasts.
