Dáil Éireann Debate, Wednesday - 20 November 2013
36. Deputy Lucinda Creighton asked the Minister for Finance the levels of consultation he had with the Department of Health in advance of altering the restrictions on tax relief on health insurance; his views that referring to insurance policy holders who would be affected in the budget as just the gold plated policy holders was misleading; and if he will make a statement on the matter. [49258/13]
View answerAs I previously stated, in my reply to Parliamentary Question Number 166 (ref number 45941/13) of 5 November 2013 put forward by the Deputy, decisions regarding tax matters are primarily a matter for my Department and the Office of the Revenue Commissioners. However, the Budget was agreed by the Government before its announcement on Budget day. In addition, as the Deputy is aware, that from 16 October 2013, tax relief for medical insurance premiums has been restricted to the first €1,000 per adult and the first €500 per child insured. Any portion of premium paid in excess of these ceilings will no longer qualify for tax relief.
The Commission on Taxation in its 2009 report recommended the retention of medical insurance relief but that it should be limited. The Government is satisfied that the introduction of the new ceilings will achieve such an outcome.
It is envisaged that the introduction of the new ceilings will ensure some continuing support via the tax system for those who purchase medical insurance policies, while reducing Exchequer exposure to more expensive policies.
