asked the Minister for Finance if he will indicate (a) the gross yield and (b) the net yield to the Exchequer in 1986 from the deposit interest retention tax; and if he has any plans to alter or repeal this tax in 1987.
Ceisteanna—Questions. Oral Answers. - DIRT Yield.
41.
The gross amount of retention tax collected to date is £137.1 million. The net yield in 1986 from this tax is estimated at £80 million. Any changes to the tax are a matter for consideration in the context of the 1987 budget.
The net yield takes into account the fact that those who would not normally be liable to income tax will be entitled to apply for a rebate at the end of the year? Would the Minister indicate, taking that last element into account, how much the net yield at the end of the year will exceed what otherwise would have been the yield from the financial institutions, whether building societies or banks, on deposits?
As the Deputy is aware, the refunds to individuals aged over 65 years and to those who are incapacitated can only be claimed in the next tax year. Therefore, the figure of £80 million does not take them into account. They would be met out of next year's accounts. I do not have information available as to the likely level of such refunds but they will not be very significant in terms of reducing the £80 million by a substantial sum. I suspect the reduction will be small.
How much will the yield the Minister referred to exceed what would have been the normal yield from deposits?
It will exceed it by £80 million.