Tax Code.

Dáil Éireann Debate, Tuesday - 12 December 2006

Tuesday, 12 December 2006

Ceisteanna (209)

David Stanton

Ceist:

229 Mr. Stanton asked the Minister for Finance if, bearing in mind the significant risk that tax revenues may have to be increased to reflect changes in the age structure of the population arising from increasing life expectancy, it is feasible for the PAYE system to be adjusted to ensure that persons investing in pension funds at present will not face the risk of higher marginal rates of PAYE on the annuities they receive when they retire by recording the total amounts of PAYE they save as a percentage of the amounts they invest and by subsequently capping their PAYE liabilities appropriately on any pension annuities they receive. [42696/06]

Freagraí scríofa

Minister for Finance (Mr. Cowen)

The Deputy will appreciate that taxation policy is a matter for the Oireachtas to lay down in law from time to time in the public interest and in line with the wishes of the electorate. In these circumstances, Governments cannot effectively bind their successors in this regard nor would it be appropriate to try to do so. I regret therefore that I cannot give the sort of assurances envisaged by the Deputy in his question on the tax rate to be paid on annuities in the future.