Dáil Éireann Debate, Tuesday - 6 October 2015
240. Deputy Richard Boyd Barrett asked the Minister for Finance the total figure foregone in tax to the Exchequer each year as a result of the tax credits for private health insurance; and if he will make a statement on the matter. [34228/15]
View answerI am informed by the Revenue Commissioners that the following table gives a breakdown of the estimated cost to the Exchequer of tax relief allowed through the tax relief at source (TRS) system for medical insurance premia from 2005 to 2014.
The estimates do not include 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 the final column of the following table. The cost of the age-related tax credit for the years 2009 to 2012 inclusive 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.
Risk equalisation credits are not given through the tax system effective from 1 January 2013.
|
Tax Year |
Estimated Cost €m (excluding cost of Age Related Tax Credit) |
Cost of Age-Related Tax Credit €m |
|
2005 |
230 |
Not Applicable |
|
2006 |
261 |
Not Applicable |
|
2007 |
300 |
Not Applicable |
|
2008 |
321 |
Not Applicable |
|
2009 |
374 |
216 |
|
2010 |
390 |
308 |
|
2011 |
404 |
333 |
|
2012 |
448 |
436 |
|
2013 |
463 |
112 |
|
2014 |
354 |
0.3 |
