Tax Data

Dáil Éireann Debate, Thursday - 16 June 2016

Thursday, 16 June 2016

Questions (77)

Pearse Doherty

Question:

77. Deputy Pearse Doherty asked the Minister for Finance the specific estimates of the cost of planned tax reductions or of the amount of new revenue that would be raised from the planned offsetting tax changes for all relevant years, given the warnings raised by the Irish Fiscal Advisory Council regarding his taxation proposals contained in the programme for a partnership Government, whereby he commits to the continued phasing out of the universal social charge and states that this and other reductions in personal tax rates will be largely funded through higher taxes in other areas, for example through non-indexation of personal tax credits and bands, [16433/16]

Written answers

Minister for Finance

My officials are currently completing work on the Summer Economic Statement to be published shortly by the Government.  This Statement will reflect the tax and spending priorities set out in the Programme for a Partnership Government (PPG).

As the Deputy is aware, in the PPG there is a commitment to ask the Oireachtas to continue to phase out the USC as part of a wider medium-term income tax reform plan that keeps the tax base broad, reduces excessive tax rates for middle income earners, and limits the benefit for high earners. Reductions will be introduced on a fair basis with an emphasis on low and middle income earners.

Work on development of the medium-term income tax reform plan is ongoing and as such the expected cost is not yet finalised.  It is due to be published for consultation with the Oireachtas Committee on Finance in July, and for approval by the Oireachtas in October.

The revenue to be raised by planned offsetting tax changes, such a sugar-sweetened drinks tax for example, will depend on, among other things, the rate at which the tax is set and the scope of its application.  These issues are budgetary matters which will be determined through the budgetary process.