Vol. 573 No. 5
55 Mr. Crawford asked the Minister for Finance his views on whether there is a need to increase the VAT refund to farmers to take account of the increases in VAT in the budget 2003, notwithstanding any increase that might take place in the budget 2004; his further views on whether his failure to do this is eroding confidence, especially among young farmers and causing even fewer than normal to enter the business; and if he will make a statement on the matter. [25685/03]
The flat rate refund to VAT unregistered farmers is examined every year in the context of the budget. It is not, however, customary for me to comment on any possible changes which may arise in the context of the forthcoming budget.
56 Mr. Broughan asked the Minister for Finance the number of submissions received by his Department on the consultation paper on carbon taxes; when he intends to take a decision on this matter; the consideration which has been given to measures necessary to ensure that such taxes do not impact disproportionately on those on low incomes; and if he will make a statement on the matter. [25765/03]
As the Deputy will be aware, and following on my Budget Statement regarding carbon energy taxation last December, I published a carbon energy tax consultation paper, prepared by my Department, on 31 July of this year. This consultation paper was designed to facilitate discussions on the introduction and design of the carbon energy tax while recognising that there are divergent views on the issue. Submissions in response to the paper were invited from interested parties to be received in this Department by 30 September 2003, but extra time has been given where requested by organisations to complete their submissions. To date, 117 submissions have been received by my Department in response to the carbon taxation consultation paper.
The Government has already decided in principle on the introduction of a carbon energy tax. The decision on the precise details of such a tax will be informed through the consultation process currently under way. The current step in this process is the examination of submissions received in the Department. All relevant issues, including the effect of carbon energy tax on those on low incomes, will be taken into account in the consideration of the proposal.
57 Mr. Gilmore asked the Minister for Finance the steps he intends to take to ensure that full information is available on the cost to the Exchequer of all tax reliefs; and if he will make a statement on the matter. [25770/03]
Tax reliefs are widespread throughout the tax system and are found under all tax headings including income tax, corporation tax, capital taxes and indirect taxes. These are mechanisms within the tax code which are designed to meet a specific need within the economy or society in general by encouraging and incentivising certain behaviours or reducing particular costs incurred by the tax paying public.
Tax reliefs represent a significant overall cost to the Exchequer. However, there are difficulties in providing information on a number of individual tax reliefs and incentives. The identification of the costs of individual schemes is not always possible as the details may only be captured in aggregate form on tax returns. For example, this is the case on capital allowance information which is currently aggregated in tax returns under three broad headings of plant and machinery, industrial buildings and other. Where income is exempt, it is not always a requirement that it be included in tax returns and no information on the costs of such reliefs would therefore be available from that source. I should mention however, that in Finance Act 2003, I introduced a requirement that the profits, gains and losses arising from stallion fees, occupation of certain woodlands and stud greyhound fees must be included in the annual return of income even though the income or gains are exempt.
My Department is working closely with the Office of the Revenue Commissioners to identify mechanisms for enhancing the level of information captured in respect of tax reliefs, in particular the amount being claimed and details of the number of individuals availing of the various schemes. However, I should point out that it is necessary to balance the needs of the Exchequer for statistical information with the desire to minimise as far as possible the administrative burden placed on individual taxpayers and on the business community.
