Dáil Éireann Debate, Tuesday - 17 June 2014
187. Deputy Michael McGrath asked the Minister for Finance the yield that would be achieved in 2015 from standard rating pension tax relief, taking into account other changes to pension tax relief in recent years; and if he will make a statement on the matter. [25974/14]
View answer188. Deputy Michael McGrath asked the Minister for Finance the number of taxpayers who would be affected by standard rating of pension tax relief; and if he will make a statement on the matter. [25975/14]
View answerI propose to take Questions Nos. 187 and 188 together.
A breakdown of the cost of tax relief on employee contributions to occupational pension schemes is not available by either Income Tax rate or by reference to income levels, as returns by employers to the Revenue Commissioners of employee contributions to such schemes are aggregated at employer level. There is, therefore, no statistical basis for providing definitive figures. However, by making certain assumptions about the available information, it is tentatively estimated that the full-year yield to the Exchequer from confining tax relief to the standard rate of 20% in respect of pension contributions to occupational pension schemes, retirement annuity contracts and personal retirement savings accounts and confining tax relief for the Public Service pension related deduction to the standard rate of 20% would be in the region of €467 million. This estimate includes €90 million in respect of the Public Service pension related deduction.
This estimate does not allow for possible behavioural changes that could arise from a change in the rate of relief. In terms of the 2011 Income Tax year, the latest year for which the necessary figures are available, it is estimated that about 768,000 claimants avail of relief on contributions to occupational pension schemes, retirement annuity contracts and personal retirement savings accounts.
