Dáil Éireann Debate, Thursday - 19 October 2017
62. Deputy Seán Haughey asked the Minister for Finance if individual taxpayers foregoing tax cuts and cuts to the USC in order that this money can be ring-fenced for specific purposes such as homelessness will be facilitated; and if he will make a statement on the matter. [44346/17]
View answerThe Office of the Revenue Commissioners is obliged to comply with its statutory tax and duty obligations. In so doing, it is required to apply any changes to tax or USC rates as passed by the Oireachtas. The question of Revenue applying rates other than those set out in statute does not therefore arise.
On the topic of ring-fencing tax receipts, from a budgetary perspective any move to hypothecate revenue from a particular source should in general be avoided. As this involves linking specific expenditure to an explicit revenue source, it is only used in limited circumstances where a strong justification exists as it can cause difficulties for the efficient and effective management of the public finances.
Furthermore, it also exposes specific expenditure solely dependent on a hypothecated revenue to any potential volatility associated with this revenue source. Therefore, a more stable and sustainable financing model is to fund expenditure centrally, which instead relies upon a number of sources of income and retains the flexibility to address changing spending priorities or revenue issues as they arise.
