Dáil Éireann Debate, Thursday - 21 September 2017
69. Deputy Joan Burton asked the Minister for Finance the mechanism for calculating the bank levy; the way in which it is apportioned between institutions; the yield that would result in 2018 from doubling the value of the levy and individual charge that would apply to each relevant bank; and if he will make a statement on the matter. [39991/17]
View answerIn Budget 2016, the Minister for Finance committed to extending the bank levy (a form of stamp duty paid by financial institutions) until 2021, subject to a review of the calculation methodology.
This review took place during 2016, and included a public consultation to ascertain the views of stakeholders. Following on from this, it was decided to retain the existing DIRT-based calculation methodology, but to update the base year and corresponding levy rate, in order to protect the €150 million annual yield. Minister Noonan committed to the introduction of a rolling two-year series of base years which will introduce a new base year of 2017 for calculating the levy in 2019 and 2020, and a new base year of 2019 for calculating the levy in 2021. The levy rate may require updating when the base year changes to protect the €150 million annual yield.
The current rate is 59% of the amount paid in DIRT by accounts within each institution in 2015.
Doubling the current rate would give a rate of 118%. If everything else was held equal, a rate of 118% would give an approximate yield of €300 million.
The individual charge that would apply to each relevant bank would depend on the amount paid in DIRT by accounts within each institution in 2015. The individual charge by bank is subject to the requirement to maintain taxpayer confidentiality.
