Dáil Éireann Debate, Tuesday - 14 November 2006
235 Caoimhghín Ó Caoláin asked the Minister for Finance the additional cost to the Exchequer of keeping those on the minimum wage out of the tax net if the minimum wage was increased to €9.30 per hour from 1 January 2007. [37417/06]
Amharc ar fhreagraAn increase to €9.30 per hour is equivalent to €18,860 on an annualised basis assuming a 39 hour working week. By reference to the pre-Budget 2007 Income Tax Ready Reckoner prepared by the Revenue Commissioners, which is available on my Department's website, it is estimated that the full year costs to the Exchequer of ensuring that no tax is paid by employees earning such an amount on a 39 hour week basis would be in the region of €915 million in a full year if done through an increase in the Employee (PAYE) credit, or if the personal credit were used, about €1,330 million in a full year. If the Personal and Employee credits each bore half the required increase, the full year cost would be approximately €1,120 million. These figures are provisional, are likely to be revised and are rounded to the nearest €5 million.
