Wednesday, 10 February 2021

Questions (231)

Donnchadh Ó Laoghaire

Question:

231. Deputy Donnchadh Ó Laoghaire asked the Minister for Finance the estimated amount of revenue that would be generated if the tax relief for private health insurance premiums were abolished; and the amount of revenue if such relief were capped at 12%. [7216/21]

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Written answers (Question to Finance)

I am advised by Revenue that, based on provisional 2020 data, the yield to the Exchequer from the abolition of tax relief for private health insurance premiums is estimated to be of the order of €377 million per year.

The estimated yield to the Exchequer from reducing the current rate of tax relief for private health insurance premiums from the standard rate of 20% to 12% would be of the order of €151 million per year.

It is noted that the above estimates are calculated on a straight-line basis and do not take account of any behavioural impact that such a change may have, including on the price of insurance premiums.