Universal Social Charge Yield

Questions (74)

Caoimhghín Ó Caoláin

Question:

74. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the revenue accrued to the Exchequer via the universal social charge in each year since its introduction. [45496/13]

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Written answers (Question to Finance)

The data requested by the Deputy are listed in the table. It is important to take into account that the figures displayed for 2011 and 2012 in the table below are based on end-year outturns and are on a Revenue Net Receipt basis. These can differ slightly from Exchequer Receipts for reasons of accounting and timing. The estimate for 2013 USC receipts is provisional pending the outcome of the end year collection figures but is consistent with the income tax estimates contained in Budget 2014.

€bn

2011

2012

2013

USC

3.1

3.8

3.9

Tax Reliefs Cost

Questions (75)

Caoimhghín Ó Caoláin

Question:

75. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the tax forgone by the Exchequer as a result of taxation expenditures in respect of private health insurance in each year since 2007. [45498/13]

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Written answers (Question to Finance)

I am informed by the Revenue Commissioners that the cost to the Exchequer of tax relief allowed through the tax relief at source (TRS) system for medical insurance premia from 2007 to 2012 and the estimated costs for 2013 are set out in column two of the table below. The figures in column two do not include further costs to the Exchequer of age-related tax relief at source, which was established by the Health Insurance (Miscellaneous Provisions) Act 2009. Those costs are shown separately in column three of the table. The cost of the age-related tax credit is offset by a stamp duty on health insurance policies. The age-related tax credit and stamp duty were part of an interim scheme of risk equalisation, which was introduced in order to provide direct support to community rating in the private health insurance market and is intended to be revenue neutral over its duration. This interim scheme expired on 31 December 2012 and was replaced from 1 January 2013 by a permanent risk equalisation scheme, provided for in the Health Insurance (Amendment) Act 2012.

Tax Year

Cost €m (excluding cost of the Age-Related Tax Credit)

Cost of Age-Related Tax Credit €m

2007

300

Not applicable

2008

321

Not applicable

2009

373

216

2010

390

308

2011

404

333

2012

448

436

2013 (estimates)

500

115

Figures shown in table are rounded to the nearest million.

Tax Yield

Questions (76)

Caoimhghín Ó Caoláin

Question:

76. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the amount of revenue generated by the Exchequer in each of the past five years through taxes and duties on alcohol and tobacco. [45500/13]

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Written answers (Question to Finance)

I am informed by the Revenue Commissioners that the revenue generated by the Exchequer in each of the past five years through taxes and duties on alcohol and tobacco is as follows:

Alcohol

Year

Alcohol Products Tax - €m

VAT (Estimated) - €m

2009

968.0

1,075

2010

826.4

1,010

2011

829.5

1,014

2012

846.1

1,097

2013 (Jan-Sep)

667.8

835

Tobacco

Year

Tobacco Products Tax - €m

VAT (Estimated) - €m

2009

1,216.5

336

2010

1,159.7

315

2011

1,126.1

325

2012

1,072.3

339

2013 (Jan-Sep)

634.2

198

Property Taxation Yield

Questions (77, 78)

Olivia Mitchell

Question:

77. Deputy Olivia Mitchell asked the Minister for Finance the total take from property tax in 2013; and if he will make a statement on the matter. [45513/13]

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Olivia Mitchell

Question:

78. Deputy Olivia Mitchell asked the Minister for Finance the total anticipated tax take from property tax in 2014; and if he will make a statement on the matter. [45514/13]

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Written answers (Question to Finance)

I propose to take Questions Nos. 77 and 78 together.

My colleague may be aware that the estimated outturn for 2013 and the forecast yield for 2014 for all major tax heads were published in Budget 2014 and can be found in Table 8 on page C.15 of the Budget booklet (Local Property Tax is listed as “Local Taxes” in the table). For convenience, the table is replicated as follows.

Exchequer Tax Revenues 2013-2014

-

Estimated Outturn 2013 - €m

Budget Forecast 2014 - €m

Forecast Y-on-Y Change - %

Customs

250

255

+1.4

Excise Duty*

4,720

4,815

+2.0

Capital Gains Tax (CGT)

390

400

+3.2

Capital Acquisitions Tax (CAT)

405

380

-5.9

Stamp Duty

1,310

1,475

+12.6

Income Tax

15,730

17,045

+8.3

Corporation Tax

4,355

4,380

+0.6

VAT

10,365

10,740

+3.6

Local Taxes

300

550

+83.3

Total

37,825

40,040

+5.8

Tax Credits

Question No. 80 answered with Question No. 66.

Questions (79)

Michael Healy-Rae

Question:

79. Deputy Michael Healy-Rae asked the Minister for Finance if he has any proposal to remove the single parent tax credit from the parent who is deemed to be the secondary carer. [45516/13]

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Written answers (Question to Finance)

The position is that the One-Parent Family Tax Credit is being replaced with a new Single Person Child Carer Tax Credit from 1 January 2014. The Single Person Child Carer Tax Credit will be of the same value, i.e. €1,650, as the existing One-Parent Family Tax Credit and will also carry the same entitlement to the extended standard rate tax band of €36,800 per annum. The new credit will be targeted such that it is available only to the primary carer of the child. A maximum of one credit will be available per single carer/claimant, regardless of whether he or she cares for more than one child. This is the same condition that applies to the current One-Parent Family Tax Credit. Allocation of childcare responsibilities is primarily for parents to agree. Practical implementation issues are being considered as part of the Finance Bill process.

Question No. 80 answered with Question No. 66.

Tax Reliefs Application

Questions (81)

Róisín Shortall

Question:

81. Deputy Róisín Shortall asked the Minister for Finance further to his comments in Limerick on 18 September 2013, the nature of the deal which he expected to make with the pensions industry in respect of the promised introduction of a cap on a pension tax relief. [45528/13]

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Written answers (Question to Finance)

In Budget 2013, I made a number of commitments in relation to the tax provisions affecting supplementary pension provision. I said that tax relief on pension contributions would continue at the marginal rate of tax. In addition, I gave an undertaking that the 0.6% pension fund levy would not be renewed after 2014. I considered that I was in a position to make these significant commitments on foot, among other things, of proposals in late 2012 from the pensions sector for changes to the Standard Fund Threshold (SFT) regime, as an alternative to standard rating of pension tax relief, which it was claimed would yield savings and tax revenues in the region of €400 million. Pending further analysis of this claim, I included a much lower figure of €250 million in the Budget 2013 arithmetic. That analysis has since revealed significant downside risks to the achievement of even this lower level of yield or savings. The estimate of the yield from the changes to the SFT regime which I announced in last week’s Budget is €120 million. These changes differ in some respects from those proposed by the pensions sector and reflect, on legal advice, the requirement to protect pension rights at the date of change. In addition, valuation factors to place a value on Defined Benefit pensions for SFT purposes will vary with the age at which the pensions are drawn down thereby improving equity within the regime.

I would not categorise my engagement with the pensions sector on this matter as a “deal”, in the manner suggested by the Deputy. However, the assessment that the changes to the SFT regime required to deliver on the Budget 2013 commitment to cap taxpayer subsidies to higher value pensions would have a considerably lower yield than originally put forward, meant that the achievement of the overall budgetary objectives (including the continuation of the reduced VAT rate for the tourism sector and to make provision for potential State liabilities which may emerge from pre-existing or future pension fund difficulties) necessitated the imposition of the additional 0.15% pension fund levy for 2014 and 2015.

Pensions Levy Issues

Questions (82)

Róisín Shortall

Question:

82. Deputy Róisín Shortall asked the Minister for Finance the basis for his decision to increase the pension levy in budget 2014; the expected yield from this measure; and the purpose to which he intends to put these funds. [45529/13]

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Written answers (Question to Finance)

I announced in my Budget speech last week that the 0.6% Pension Fund Levy introduced to fund the Jobs Initiative in 2011 will be abolished from the 31st of December 2014. I will however, introduce an additional levy on pension funds at 0.15%. I am doing this to continue to help fund the Jobs Initiative, including the continuation of the reduced 9% VAT rate detailed below and to make provision for potential State liabilities which may emerge from pre-existing or future pension fund difficulties. The additional levy within the existing legal framework will apply to pension fund assets in 2014 and 2015. The additional yield from the changes to the levy in 2014 and 2015 is estimated at €135 million in each year. The revenues arising to the Exchequer from the levy are, in common with Exchequer revenues generally, not hypothecated to any particular item of expenditure or liability but have been used to help fund the various measures introduced by the Jobs Initiative.

One of the very significant and successful measures introduced by the Jobs Initiative – the reduced VAT rate of 9% on tourism and certain other services – was due to end this year. In my Budget speech, I announced the continuation of the reduced 9% VAT rate. I also announced that the Air Travel Tax is being reduced to zero with effect from 1 April 2014. The combined cost of these initiatives is estimated at close to €400 million in a full year.

The Jobs Initiative also included a number of current and capital expenditure measures. While the details of the expenditure on these measures are a matter for my colleagues in Cabinet, I would ask the Deputy to note that the Jobs Initiative originally provided for 5,000 places under Jobbridge, the National Internship scheme and 5,900 places under the Springboard scheme. Numbers who have participated in Jobbridge have now exceeded 20,000 with an evaluation by Indecon Economic Consultants finding that 61.4% of survey respondents were in employment within 5 months of finishing their internships. The Springboard scheme, now in its third iteration, has expanded to over 16,500 places. The expansion of these schemes, reflective of their success, will require further funding from the Exchequer.

The extent of the potential State liabilities from the pre-existing or future pension fund difficulties is a matter currently under examination by my colleague the Minister for Social Protection. As I have already indicated, however, the proceeds from the levy that accrue to the Exchequer are not set aside to meet discrete items of expenditure or liability and expenditure decisions on the use of those and other funds will be made as they arise in the normal way.

National Debt Issues

Questions (83)

Róisín Shortall

Question:

83. Deputy Róisín Shortall asked the Minister for Finance if he will provide estimates of the national debt as at the end of 2013; the end of 2014 and the end of 2015. [45533/13]

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Written answers (Question to Finance)

The table sets out the estimates of end-year National Debt for the years 2013 to 2015 consistent with the recent fiscal forecasts in Budget 2014. The end-2012 National Debt outturn is also included in the table for information.

€ billion (End-Year)

2012

2013*

2014*

2015*

National Debt

137.6

173.8

183.6

189.8

*Estimate

Source: NTMA

It is important to bear in mind the distinction between National Debt and General Government Debt (GGD). National Debt is the net debt incurred by the Exchequer after taking account of cash balances and other financial assets. The large increase in National Debt in 2013 over 2012 primarily reflects the issuance of €25 billion in Government bonds in February 2013 to replace the IBRC Promissory Note, as well as the estimated Exchequer Borrowing Requirement (EBR) for 2013. While the Promissory Note had been part of GGD since 2010, it was not part of the National Debt. One of the consequences of the February transaction is that National Debt and GGD are now more closely aligned.

GGD is a measure of the total gross consolidated debt of the State and is the measure used for comparative purposes across the European Union. It is reported on a gross basis and, unlike National Debt, it does not net off cash balances and other financial assets. National Debt is the principal component of GGD but GGD also includes the debt of central and local Government bodies.

For comparison purposes the table sets out the estimates of end-year General Government Debt for the years 2012 to 2015 consistent with the recent fiscal forecasts in Budget 2014.

€ billion (End-Year)

2012

2013

2014

2015

General Government Debt

192.5

205.9

204.7

209.4

Source: Department of Finance & CSO