Dáil Éireann Debate, Wednesday - 20 January 2016
53. Deputy Michael McGrath asked the Minister for Finance the background to the 3% stamp duty that applies to all non-life insurance policies; the amount that has been collected to date in respect of the stamp duty; the anticipated yield in 2016; how this money is spent; if he will ring-fence the funding for flood-related measures; and if he will make a statement on the matter. [2424/16]
View answerSection 125 of the Stamp Duties Consolidation Act 1999 provides for a levy of 3% on the gross amount received by an insurer in the form of premiums paid in respect of non-life policies covering risks which are located in the State. This levy applies to most non-life insurance premiums with the exception of re-insurance, voluntary health insurance, marine, aviation and transit insurance, export credit insurance and certain dental insurance contracts.
The levy was originally introduced in 1982 at a rate of 1% of chargeable premiums. The rate was increased to 2% in the Finance Act 1993 and to the current rate of 3% in the Finance Act 2009. The proceeds of the levy on non-life insurance form a part of general stamp duty receipts and are paid into the Central Fund along with other tax receipts.
I am advised by the Revenue Commissioners that the available data on amounts collected to date in respect of the stamp duty levy on non-life insurance policies are set out in the following table.
|
Year |
Yield €m |
|
2015 |
108.05 (Provisional) |
|
2014 |
103.35 |
|
2013 |
98.73 |
|
2012 |
104.16 |
|
2011 |
106.40 |
|
2010 |
109.47 |
|
2009 |
86.39 |
|
2008 |
80.10 |
|
2007 |
85.36 |
|
2006 |
88.28 |
|
2005 |
90.8 |
|
2004 |
97.7 |
|
2003 |
99.7 |
|
2002 |
87.2 |
|
2001 |
69.1 |
I am further advised that the anticipated yield in 2016 is in the region of €116.05 million.
I am generally not in favour of the hypothecation of taxes as it reduces the flexibility of the Government to prioritise and allocate funds as necessary at a particular time.
