Vol. 495 No. 2
89 Ms Shortall asked the Minister for Finance the proposals, if any, he has to make recommendations to the Government on behalf of the elderly for a doubling of the age allowance in the forthcoming budget; and if he will make a statement on the matter. [18889/98]
The elderly are treated more favourably under the Irish income tax code than the generality of taxpayers. The exemption limits for those aged 65 and over are significantly higher than those which apply generally.
The Government is committed to providing special relief for old age pensioners by raising the exemption limits. In my 1998 budget, I announced a substantial increase in the exemption limits for the elderly of £400 single/£800 married to £5,000 single/£10,000 married for those aged 65 to 74 and of £300 single/£600 married to £5,500 single/£11,000 married for those aged 75 and over, which have taken effect from the new tax year. This compares with the general exemption limits of £4,100 single/£8,200 married.
Where pensioners aged 65 and over are taxed under the normal personal allowance tax system they are eligible for the special age allowance of £400 single/£800 married, which is in addition to the normal personal allowances. In this instance, the elderly will benefit from the general tax improvements introduced in the 1998 budget e.g. the increase in personal allowances of £250 single/£500 married to £3,150 single/£6,300 married, the widening of the standard band by £100 single/£200 married and the 2 per cent reduction in both the standard and top income tax rates.
I will bear in mind the tax position of the elderly in the context of the forthcoming budget.
