Dáil Éireann Debate, Tuesday - 26 July 2022
336. Deputy Ged Nash asked the Minister for Finance the estimated yield from increasing the bank levy rate to 100% or to 157% and 200% respectively in tabular form; and if he will make a statement on the matter. [39897/22]
View answerSection 126AA of the Stamp Duties Consolidation Act 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. I am advised by Revenue that for 2022, the applicable rate is 308% of DIRT paid in 2019. It is expected that the Bank Levy will yield approximately €87 million for 2022. The 2022 Bank Levy will be paid on or before 20 October 2022.
The Deputy may be aware that 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 considered when calculating the levy payable by those financial institutions for 2022. As I noted earlier the current rate is 308%. If the applicable rates for 2022 were 100%, 157% or 200% the approximate Bank Levy yield for 2022 would be as set out in the following table:
|
Bank Levy Rate % |
100% |
157% |
200% |
|
Approximate Yield |
€28.2m |
€44.3m |
€56.4m |
