Noel Dempsey
Ceist:93 Mr. Dempsey asked the Minister for Finance the total yield to the Exchequer from produce of 1 per cent of income tax, 1 per cent of VAT, 1 per cent customs and excise duties and 1 per cent of corporation tax. [10095/96]
Written Answers. - Tax Yield.
It is presumed that the question relates to an increase of one percentage point in the rates of each of the taxes and duties mentioned. The cost, before buoyancy, of the rate changes requested in so far as it is available, is:
Increases of 1 per cent in tax rates
|
Taxhead |
Estimated gross yield to the Exchequer Full Year |
|
£m |
|
|
Income Tax |
125.5 |
|
Value Added Tax (Standard Rate) |
93.6 |
|
Excise |
39.7 |
|
Corporation Tax (Standard Rate) |
18.0 |
A large number of rates apply to customs duties and an estimate of the yield to the Exchequer from applying a 1 per cent increase to each rate could be supplied only at disproportionate cost. The budget estimate for customs duties in 1996 is £201 million and an increase of 1 per cent on this basis would produce a yield of £2 million. However, as 90 per cent of the customs intake each year forms part of Ireland's contribution to EU own resources, only 10 per cent of this additional yield, about £0.2 million, would be retained by the Irish Exchequer.
Notes:
(1) The figure of yield shown for income tax is based on increasing the current rates of 27 per cent and 48 per cent to 28 per cent and 49 per cent respectively.
(2) The figure of yield for VAT is based on increasing the standard rate of 21 per cent to 22 per cent.
(3) The figure of yield for excise is based on an increase of 1 per cent in the specific duties per volume applicable to most excisable commodities together with an increase of 1 percentage point in the ad valorem rates applying to certain other goods such as cigarettes and for most of the vehicle registration tax categories.
(4) The figure of yield for corporation tax is based on increasing the standard rate of 38 per cent to 39 per cent.