Dáil Éireann díospóireacht -
Tuesday, 12 Nov 2002

Vol. 557 No. 1

Written Answers. - Insurance Levy Yield.

Pádraic McCormack

Ceist:

74 Mr. McCormack asked the Minister for Finance the amount of the 2% insurance levy on non-life insurance policies in 1997; his estimate of the outturn for 2002; and his views on whether this should be reduced as part of the strategy to reduce insurance costs. [21336/02]

Minister for Finance (Mr. McCreevy)

The 2% levy, stamp duty, on non-life insurance premiums applies to most categories of non-life insurance business. The exceptions are re-insurance, voluntary health insurance, marine, aviation and transit insurance and export credit insurance. Most EU member states have such a tax, and in most cases it is at a significantly higher rate than in Ireland, typically 9 to 15%.

The levy was introduced to broaden the stamp duty base, thereby raising additional revenue. The yield for each of the past five years and the estimated outturn for 2002 is as follows:

Year	Yield
	€million
1997	38.66
1998	42.32
1999	48.12
2000	56.97
2001	69.11
2002 (estimated)	82.00

As you can see from the yield, it is clear that it is a significant source of revenue to the Exchequer and I do not plan to reduce it.

The Tánaiste and Minister for Enterprise, Trade and Employment has responsibility for the insurance industry. On 25 October 2002, she announced a programme for fundamental insurance reform. The programme reflects the commitments given in An Agreed Programme for Government and comprises a comprehensive set of inter-related measures designed to improve the functioning of the Irish insurance market and to reduce costs all round.