Paul McGrath
Ceist:363 Mr. P. McGrath asked the Minister for Finance the estimated cost of taxing the present rate of child benefit. [29534/05]
Amharc ar fhreagraTuesday, 18 October 2005
Ceisteanna (284)
Freagraí scríofa
I assume that what the Deputy requires is the yield to the Exchequer if child benefit payments were included as income for tax purposes. I am informed by the Revenue Commissioners that the full year yield from taxation of child benefit at each taxpayer's marginal tax rate is tentatively estimated at €377 million in 2005 terms. This figure is provisional and likely to be revised. Furthermore, it does not include the yield from income earners whose current income levels do not exceed the existing thresholds of exemption limits or tax credits and who could be brought into the tax net if child benefit payments were included as taxable income. If this amount was also taken into account, the yield in a full year is very tentatively estimated at approximately €400 million.