Dáil Éireann díospóireacht -
Tuesday, 3 Apr 2001

Vol. 533 No. 6

Written Answers. - Tax Code.

Austin Currie

Ceist:

188 Mr. Currie asked the Minister for Finance the cost of increasing the personal and married tax credits to £2,000 and £4,000 respectively; and the cost of applying a 10% tax rate to the first £3,000 income of a single person and £6,000 income of a married couple, rather than a 20% rate. [9575/01]

Minister for Finance (Mr. McCreevy):

I am informed by the Revenue Commissioners that the full year costs to the Exchequer – estimated by reference to 2001 incomes data – of the changes mentioned by the Deputy are as follows:

Changes	Full year cost£m
Increasing the personal and married person's tax credits to £2,000 and £4,000 respectively	1,191
Applying a 10% tax rate to the first £3,000 of taxable income (single and widowed) and £6,000 (married) rather than a 20% rate	444

These figures are provisional and are likely to be revised. They show the cost of making the changes as if each was made separately and without reference to the other.

The cost of increasing the personal tax credits includes the estimated cost of the suggested increases for single and widowed persons and lone parents.

The cost of introducing the new low tax rate is estimated on the basis of taxation at 10% of the suggested portions of the band currently taxable at 20% and retaining personal tax credits and reliefs at existing levels. The change applicable to single persons is also assumed to apply to lone parents for whom a special rate band was introduced in Budget 2000.