Dáil Éireann díospóireacht -
Thursday, 11 Feb 1993

Vol. 425 No. 8

Written Answers. - Cost of Tax Cuts.

Michael Noonan

Ceist:

66 Mr. Noonan (Limerick East) asked the Minister for Finance the cost to the Exchequer of a 1 per cent cut in the higher and standard rates of tax and the estimated yield from a 1 per cent increase in each rate for 1993 and for a full year.

Minister for Finance (Mr. B. Ahern)

The estimated full year effects on the Exchequer of the changes mentioned by the Deputy are approximately as follows in 1993-94 terms:

		Full year effect on Exchequer
		£ million
Standard Rate
Reduction from 27% to 26%:	Cost	74
Increase from 27% to 28%:	Yield	74
Higher Rate
Reduction from 48% to 47%:	Cost	31.5
Increase from 48% to 49%:	Yield	31.5

Approximately 60 per cent of the full year effect would accrue in 1993.

These figures are provisional and are likely to be reviewed.