Dáil Éireann díospóireacht -
Wednesday, 19 Oct 1994

Vol. 446 No. 1

Written Answers. - Income Tax Yield.

Michael McDowell

Ceist:

48 Mr. M. McDowell asked the Minister for Finance if his attention has been drawn to the fact that the annual yield of income tax to September 1994, had risen by 12.5 per cent; if he will apportion this 12.5 per cent increase by reference to inflation, economic growth and the progressive effect of the income tax code; if he has satisfied himself that Irish taxpayers are in a position to pay such an increased amount in income tax; and if he will make a statement on the matter. [1602/94]

Minister for Finance (Mr. B. Ahern)

I assume that the Deputy's question is prompted by the Exchequer returns to end-September 1994, which indicated that income tax receipts totalled £2,887.7 million in 1994 compared to £2,575.5 million over the first nine months of 1993. That represents a year-on-year increase of 12.1 per cent.

The 1994 income tax receipts shown in the returns include some £220 million attributable to the tax amnesties. This has to be excluded in any consideration of the trend in the burden of income tax. On that basis, cumulative Income Tax to end-September 1994 was £2,667.4 million, or 3.6 per cent ahead of the same period in 1993.

It is not possible to allocate the 3.6 per cent margin into the components mentioned by the Deputy. While there is undeniably an indirect influence, neither inflation nor economic growth would be direct determinants of income tax yield.