Tuesday, 27 May 2014

Questions (119)

Stephen Donnelly

Question:

119. Deputy Stephen S. Donnelly asked the Minister for Finance the length of time the pension levy will be used to fund State jobs initiatives in view of the fact that the private pension sector has already contributed €2.2 billion via the levy to fund job creation; and if he will make a statement on the matter. [22727/14]

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Written answers (Question to Finance)

I announced in my Budget 2014 speech 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 have, however, introduced an additional levy on pension funds at 0.15% for 2014 and 2015. I am doing this to, among other things, continue to help fund the Jobs Initiative. Finance (No. 2) Act 2013 provides for the application of the levy up to 2015.

The receipts from the stamp duty levy on pension fund assets have amounted to €463 million in 2011, €483 million in 2012 and €535 million in 2013 giving a total of €1.481 billion to date. On the other hand, from 2011 to 2013, the cost of the expenditure and taxation measures introduced as part of the Jobs Initiative has been estimated at over €1.7 billion.