Dáil Éireann Debate, Wednesday - 21 February 2024
59. Deputy Colm Burke asked the Minister for Finance if he will give due consideration to restoring the higher rate of tax relief for expenditure on GPs, consultants and prescriptions; and if he will make a statement on the matter. [8200/24]
View answerAs the Deputy will be aware, with effect from 1 January 2009, income tax relief in respect of qualifying health expenses, with the exception of relief in relation to 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 2021, the cost of tax relief for health expenses (excluding nursing home expenses) was €172 million and it was availed of by c. 568,000 claimants.
In my view, the availability of tax relief at the standard rate of income tax for health expenses is sufficiently calibrated and is the most appropriate use of fiscal resources. As such, I have no plans to enhance the relief.
