Dáil Éireann Debate, Thursday - 20 October 2016
100. Deputy Michael McGrath asked the Minister for Finance the fiscal space available in 2018 if tax bands and credits are indexed and if they are not indexed; and if he will make a statement on the matter. [31424/16]
View answerAdditional revenue generated from a policy decision to not to proceed with indexation is included in the discretionary revenue measures set out in Table A7 Application of Expenditure Benchmark on a no policy change from 2018 onwards in Annex 2 of the Budget 2017 book.
The amount arising from non-indexation of the estimated €1.2 billion net fiscal space is c.€450 million. This is made up of €65 million carryover from non-indexation in 2017 and c. €385m in the first year yield that should arise from proceeding with non-indexation in 2018. Please note the estimates for 2018 are based on 2017 figures and the cost of non-indexation in 2018 will be reassessed in the preparation of Budget 2018.
Should taxpayers benefit from indexation of the tax system then the net fiscal space would be reduced by c. €385 million in 2018 as the decision to proceed with non-indexation in 2017 was confirmed in Budget 2017.
