Vol. 521 No. 2
103 Mr. Higgins (Dublin West) asked the Minister for Finance the revenue or estimated revenue accruing to his Department by applying the health levy to gross capital gains, net capital gains, gross capital acquisitions and net capital acquisitions. [16871/00]
Due to the various thresholds and reliefs in capital acquisitions tax, it is difficult to estimate the gross underlying assets being transferred by way of inheritance or gift. The probate tax base would give a more representative picture of assets transferred on death because of the lower thresholds and reliefs. It is tentatively estimated that the present amount of net taxable assets in the probate tax base is about £1.3 billion. Statistics are not available which would enable an estimate of the gross value of the assets chargeable to probate prior to the netting off of reliefs and exemptions to be compiled.
104 Mr. Higgins (Dublin West) asked the Minister for Finance the revenue or estimated revenue accruing to his Department by applying the health levy to benefit-in-kind. [16872/00]
The health levy does not apply to benefits-in-kind.
The total amount of income identified for income tax purposes as benefit-in-kind is estimated to be of the order of £217 million in respect of the income tax year 1997-98, the latest year for which the relevant figures are available. If the levy had applied to that income for the income tax year 1997-98 the yield would have been £2.7 million.
105 Mr. Higgins (Dublin West) asked the Minister for Finance the revenue or estimated revenue accruing to the Exchequer from applying a 12.5% VAT rate to all activities, goods and services exempted from VAT. [16874/00]
Under EU VAT law with which Irish VAT law must comply, certain activities such as financial services or hospital and medical care are exempt from VAT and it would not be possible to change their VAT status without agreement at EU level.
I understand from the Revenue Commissioners that information on the extent of exempt activities, goods and services is not readily available and could only be compiled at a disproportionate cost. If a previously exempt activity becomes subject to VAT, offsetting credits in respect of relevant vatable inputs would have to be allowed to a registered trader and to any VAT registered customer. Therefore, the VAT yield to the Exchequer would be net of all such input credits.
106 Mr. Higgins (Dublin West) asked the Minister for Finance the revenue or estimated revenue accruing to the Exchequer from applying a 12.5% VAT rate to all activities, goods and services which are VAT zero-rated. [16875/00]
The estimated gain in revenue from applying a 12.5% VAT rate to goods and services currently zero rated is £569 million. This would require imposing a 12.5% rate on, inter alia, most food, children's clothing and shoes, oral medicine and books.
Any Exchequer gain does not take into account possible welfare compensatory measures arising from the imposition of a positive rate of VAT to certain existing zero rated goods and services.
107 Mr. Higgins (Dublin West) asked the Minister for Finance the cost or estimated cost to the Exchequer from reducing the 12.5% VAT rate to 5%. [16876/00]
The estimated cost to the Exchequer of reducing the 12.5% VAT rate to 5% is £1,299 million. This figure includes reducing the VAT on certain goods and services which were at a reduced rate of VAT on 1 January 1991 and which, due to the provisions of the EU sixth VAT directive, we cannot reduce below 12%. EU law allows for a minimum 5% rate only for those items specified in Annex H of the EU sixth VAT directive. The cost of reducing those items currently at 12.5% to 5% is estimated at £436 million.
