asked the Minister for Finance the cost to the Exchequer of the following items of income tax relief for 1979-80: mortgage interest, pension schemes including any PRSI schemes, medical insurance, bank interest on personal borrowing and life insurance.
Ceisteanna—Questions. Oral Answers. - Income Tax Relief Costs.
3.
Information is not available on which an accurate estimate of the separate cost to the Exchequer of income tax relief on mortgage interest and bank interest on personal borrowing could be based. The current annual cost of relief on all interest is estimated at £30 million, of which approximately £20 million is in respect of mortgage interest and £10 million in respect of bank and other interest.
Income tax statistics are not recorded in such a manner as would enable a reliable estimate of the cost figures for pension schemes to be given. However, a very rough estimate would suggest that the current cost of the relief is as follows
(a) Employers' contributions to social welfare (PRSI)—cost in the order of £30 million,
(b) Employees' contributions to approved occupational pension schemes—cost in the order of £10 million.
Contributions made by employees into PRSI pension schemes are no longer allowable for tax relief and a reduced rate of PRSI contribution was provided for employees in order to compensate for the discontinuance of the relief.
Employers' contributions to approved occupational pension schemes are allowable deductions for tax purposes as a trading expense. Statistics are not kept in such a way as to enable the total cost of such deductions to be stated. The cost of allowing income tax relief under section 145 of the Income Tax Act, 1967 in respect of medical insurance premiums is estimated at close on £5 million. While sufficient information is not available to give an actual figure it is estimated that the current cost of income tax relief on life assurance is of the order of £8 million.