Dáil Éireann Debate, Wednesday - 13 July 2022
124. Deputy Ged Nash asked the Minister for Finance the amount raised annually by the bank levy since it was introduced in 2014; the projected yield in 2022; the details of the current method of calculation in tabular form; and if he will make a statement on the matter. [38610/22]
View answerSection 126AA of the Stamp Duties Consolidation Act 1999 imposes an annual levy, known as the “bank levy”, on certain financial institutions. When the levy was first introduced, it was decided that the yield would be maintained at a fixed amount of approximately €150m every year. To arrive at this fixed amount, the charge is based on a percentage of Deposit Interest Retention Tax (DIRT) paid by certain financial institutions in a specified base year. For the charge arising in the years 2021 and 2022, the levy is calculated using the base year of 2019 and a rate of 308%.
However, as Ulster Bank and KBC Bank are in the process of leaving the Irish market, both are excluded from the charge for 2022. This means that the charge will raise approximately €87m in 2022, instead of €150m. In the event the deposits associated with Ulster Bank’s and KBC Bank’s levy are transferred to another institution prior to the payment due date in October 2022, those deposits will not be subject to the levy either.
Details of the amount of the bank levy collected for the period 2014-2021 (and an estimate for 2022), as well as how the levy is calculated, are set out in tabular form below:
|
Year Bank Levy Due |
Base year |
Total DIRT in base year (€m) |
*Levy as % of DIRT |
Actual yield (€m) |
|
2014-2016 |
2011 |
€435 |
35% of DIRT |
€463 |
|
2017-2018 |
2015 |
€300 |
59% of DIRT |
€297 |
|
2019-2020 |
2017 |
€118 |
170% of DIRT |
€310 |
|
2021 |
2019 |
€64 |
308% of DIRT |
€150 |
|
2022 |
2019 |
€64 |
308% of DIRT |
€87 estimate |
* Certain DIRT payments, such as those by Credit Unions, are not included when calculating the levy
I am advised by Revenue that the exact annual yield from the bank levy is published on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/receipts/receipts-stamp-duty.aspx.
