Pearse Doherty
Question:305. Deputy Pearse Doherty asked the Minister for Finance the estimated rate of charge necessary with respect to the bank levy to produce an annual yield of €150 million in 2022 and 2023 respectively. [39472/22]
View answerThursday, 14 July 2022
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Written answers
Section 126AA of the Stamp Duties Consolidation Act (“SDCA”) 1999 provides for a levy on certain financial institutions (known as the “Bank Levy”). Since its introduction in 2003, the Bank Levy has been extended on several occasions and it currently applies to the end of 2022.
The Bank Levy is calculated by reference to the amount of deposit interest retention tax (“DIRT”) paid in a specified base year. For the year 2022, the applicable rate is 308% of DIRT paid in 2019.
Section 60 of the Finance Act 2021 excludes KBC Bank Ireland plc and Ulster Bank Ireland DAC from the Bank Levy. In addition, any deposits that transfer from KBC or Ulster Bank to other financial institutions during 2022 are not taken into account when calculating the levy payable by those financial institutions for 2022.
I am advised by Revenue that It is estimated that the bank levy will raise €87million for 2022. In order to produce an annual yield of €150 million in 2022, the rate would need to be approximately 531%.