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Dáil Éireann díospóireacht -
Wednesday, 20 Nov 1996

Vol. 471 No. 7

Written Answers. - Exchequer Tax Yields.

Tony Gregory

Ceist:

116 Mr. Gregory asked the Minister for Finance, in view of the abolition of insurance relief, the allowing of mortgage interest relief at 27 per cent instead of 48 per cent as was previously the case, the allowing of medical insurance relief at 27 per cent instead of 48 per cent as was previously the case, the doubling of the threshold before medical expenses can be claimed and the taxing of social welfare payments compared with the situation when they were not taxed, the estimated extra yield, that is, the yield which would have been received by the Revenue Commissioners if these changes had not taken place, compared with the actual yield after the changes occurred, in income tax in 1995 and in 1996. [21589/96]

I am informed by the Revenue Commissioners that the cumulative yield to the Exchequer arising from the changes mentioned by the Deputy is £79 million for 1995-96 and £106 million for 1996-97. In line with the Programme for Competitiveness and Work the additional yield from standard rating mortgage interest and medical insurance premia reliefs has been used to part finance the widening of the standard band.

Tax relief in respect of life insurance premia was phased out over a number of years culminating in the abolition of the relief allowable for the remaining 25 per cent with effect form 6 April 1992, at an estimated gain of £8 million per year. There is no basis on which an estimate of the yield arising from this measure could be compiled in respect of 1995 or 1996.

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