Dáil Éireann Debate, Tuesday - 11 July 2023
203. Deputy Colm Burke asked the Minister for Finance if he will give due consideration to granting tax relief at the higher rate on all non-routine dental care; and if he will make a statement on the matter. [34134/23]
View answerAs the Deputy will be aware, with effect from 1 January 2009, tax relief in respect of qualifying health expenses, with the exception of relief in respect of nursing home expenditure, has been granted at the standard rate of tax. Prior to that date, tax relief was available at the taxpayer's marginal rate of income tax. The decision to standardise health expenses relief was to widen the tax base and bring the rate at which relief was granted into line with the majority of tax expenditures. In addition, the standard rating of the relief has made the tax system fairer, in that all beneficiaries may receive tax relief at the same rate, currently 20 per cent.
The rationale behind income tax relief for health expenses is broadly intended to provide assistance for significant or exceptional health expenses. I would note that this is a broadly availed of relief. In 2020, the cost of tax relief for health expenses (excluding nursing home expenses) was €146 million and it was availed of by 538,000 claimants.
In my view, the availability of tax relief at the standard rate of income tax for health expenses, is the most appropriate use of fiscal resources. As such, I have no plans to enhance the relief.
