Tax Code.

Dáil Éireann Debate, Tuesday - 18 December 2007

Tuesday, 18 December 2007

Ceisteanna (94)

Aengus Ó Snodaigh

Ceist:

141 Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Finance if his attention has been drawn to the fact that the 11% increase in rent relief will have little impact on persons on low incomes who have faced 12% to 20% increases in rents in 2007 and that this is completely out of line with the rates of mortgage relief and therefore further penalises those who cannot afford to own a home; and if he will make a statement on the matter. [35055/07]

Freagraí scríofa

Tánaiste and Minister for Finance (Deputy Brian Cowen)

The available evidence suggests that rents have increased on average by just under 10% over the past year. The increase in rent relief I announced in Budget 2008 is in line with these increases. Rent relief has increased by a cumulative 57% over the past four Budgets. I would point out that expenditure measures are also employed to assist those on lower incomes, many of whom are out of the tax net or paying very low levels of income tax. Over €2.1 billion has been allocated by the Government to social and affordable housing and rent supplements for 2008, compared to an estimated €650 million to mortgage interest relief.