Tuesday, 25 June 2019

Questions (149)

Pearse Doherty


149. Deputy Pearse Doherty asked the Minister for Finance the work carried out to date on the issue of merging USC and PRSI; his plans to progress the issue; and if he will make a statement on the matter. [26772/19]

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Written answers (Question to Finance)

An inter-departmental working group was established in February 2018 to examine and report on options for the amalgamation of USC and PRSI over the medium-term. The working group completed their work, in line with their terms of reference and their report was submitted to me in late 2018.

The Report addresses a range of options for how amalgamation could be achieved, but also has identified a number of serious challenges that will need to be further considered.

The amalgamation relates to State funds with an estimated combined value of over €7 billion per annum, collected from over 2.5 million income earners. The issue is therefore a complex one that will take time to consider.

Follow-on decisions will be taken in due course and I will make these public at the appropriate time.

More generally, the Government is committed to measures that positively benefit workers while also keeping the tax base broad.

Our income tax system has been transformed since 2008, following a necessary reform to broaden the income tax base in the interest of ensuring a stable revenue stream to fund essential public services.

I am determined to balance the priorities of ensuring that our personal taxation system remains progressive, competitive but also resilient in the future.

Question No. 150 answered with Question No. 127.