Tuesday, 11 June 2019

Questions (182)

Michael McGrath


182. Deputy Michael McGrath asked the Minister for Finance the estimated yield or cost to the taxpayer from the non-indexation of the tax system each year to 2024, according to current projections; and if he will make a statement on the matter. [24218/19]

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Written answers (Question to Finance)

As part of the preparations for Budget 2019, it was estimated that the Exchequer yield from non-indexation of the income tax system would be in the region of €0.6 billion on a full year basis. In light of the publication of the Revenue Commissioners Post-Budget 2019 Income Tax Ready Reckoner this estimate has not changed materially.

The projected yield from non-indexation for Budget 2020, will not be finalised until the Office of the Revenue Commissioners has completed and published its Pre-Budget 2020 Income Tax Ready Reckoner, which is expected to be published in Quarter 3 2019. This sets out the cost to the Exchequer of indexing various income tax components by 1 per cent.

In addition, the updated Budget 2020 macroeconomic drivers used in preparing these calculations will need to be endorsed by the Irish Fiscal Advisory Council in early October 2019, which is a normal part of the budgetary process.

For the years 2021-2024 the estimated yield from non-indexation will be calculated in a similar manner, in Quarter 3 of the year of the respective Budget's publication.