Paul McGrath
Ceist:219 Mr. McGrath asked the Minister for Finance the number of pensioners who will be removed from the tax net as a result of the recent budgetary announcements. [26583/98]
Written Answers. - Income Tax.
Paul McGrath
Ceist:221 Mr. McGrath asked the Minister for Finance the number of taxpayers who will be removed from the tax net in 1999 as a result of budgetary measures announced on 2 December 1998. [26585/98]
I propose to take Questions Nos. 219 and 221 together.
Assuming the enactment of the changes announced in the 1999 budget, it is estimated that an additional 80,200 taxpayers, who would otherwise be liable to tax in the new tax year 1999-2000, will become exempt from income tax. Of these, some 15,200 will become exempt as a result of the increases in the aged exemption limits.
I am advised by the Revenue Commissioners that it is not possible to identify the numbers of pensioners who are included in these figures.
Paul McGrath
Ceist:220 Mr. McGrath asked the Minister for Finance the percentages of taxpayers who paid tax at standard rate and the higher rate for each of the past five years; and the comparison between these figures and the estimated percentages for 1999 arising from budgetary announcements. [26584/98]
Because of the radical changes to the income tax structure in the 1999 budget, and the substantial reduction in the number of those in the tax net, it is more relevant to look at the percentage of total tax units on file categorised by those who are exempt, those on marginal relief, those liable at the standard rate and those on the higher rate of income tax. This information is given below for the last five years.
Percentage of taxpayers in different bands
|
Tax Year |
Exempt |
Marginal Relief |
Standard Rate |
Higher Rate |
|
1994-95 |
25.8 |
9.6 |
36.4 |
28.3 |
|
1995-96 |
24.5 |
9.6 |
37.5 |
28.4 |
|
1996-97 |
24.4 |
10.3 |
36.6 |
28.7 |
|
1997-98 |
23.3 |
7.7 |
39.6 |
29.5 |
|
1998-99 |
22.9 |
5.3 |
41.0 |
30.8 |
|
1999-2000 Post-Budget |
26.8 |
1.6 |
39.4 |
32.2 |
Figures from 1996-97 onwards are provisional and subject to revision.
The number of taxpayers liable for tax at the top rate in the 1999-2000 tax year will fall by 17,000 compared to what would have been the case in the absence of budget changes. However, because of the reduction in the overall number of taxpayers as a result of budget measures, the previous measure which showed the numbers on the higher rate as a percentage of those paying tax, that is, excluding exempt cases, will increase from 42.4 per cent pre-budget to 43.9 per cent post-budget.
In the 1999-2000 tax year, the standard rated personal allowances and PAYE allowance will be deducted after tax is calculated rather than before the tax calculation as was the case up to now. This should be taken into account in comparing 1999-2000 with earlier years.