Dáil Éireann Debate, Thursday - 17 December 2015
139. Deputy Michael McGrath asked the Minister for Finance the proportion that the universal social charge represents of all income tax receipts in each year since its inception; the projected percentage in 2015 and 2016; and if he will make a statement on the matter. [45956/15]
View answerAs the Deputy is aware, the Universal Social Charge (USC) was introduced in Budget 2011 replacing the Income and Health Levies. It was a necessary measure to widen the tax base, remove poverty traps and raise revenue to reduce the budget deficit.
The data requested by the Deputy is set out in the following table. It is important to take into account that the figures displayed for 2011, 2012, 2013 and 2014 in the table are based on end-year outturns and are on a Revenue Net Receipts basis. These can differ slightly from Exchequer Receipts for reasons of accounting and timing. The estimates and projected percentages for 2015 and 2016 are in respect of the most up to date forecast as contained in Budget 2016.
|
Year |
Total USC Receipts €million |
Total Income Tax Receipts (Including USC Receipts) €million |
Total USC Receipts as a % of total Income Tax Receipts |
|
2011 |
€3,114 |
€13,812 |
22.5% |
|
2012 |
€3,790 |
€15,151 |
25.0% |
|
2013 |
€3,930 |
€15,752 |
24.9% |
|
2014 |
€3,647 |
€17,133 |
23.2% |
|
2015 (f) |
€4,225 |
€18,200 |
23.2% |
|
2016 (f) |
€3,995 |
€18,995 |
21.0% |
In the normal course of processing returns, there is some minor reapportionment between PAYE and PAYE receipts but it should be noted that the 2014 PAYE and PAYE USC outturns were impacted by more significant adjustments than usual to reapportionment receipts between these two headings to correct an initial estimated allocation used in 2013 (for the period January to June 2013). The net Exchequer effect of the reapportionment is and will remain neutral.
As the Deputy will be aware, a significant USC package was introduced in Budget 2016, which reduces the expected USC receipts in 2016, as indicated in the table.
