Arthur Morgan
Ceist:416 Deputy Arthur Morgan asked the Minister for Finance the return to the Exchequer in a full year if the current top rate of tax was increased from 41% to 42%. [31873/10]
Amharc ar fhreagraWednesday, 29 September 2010
Ceisteanna (326, 327)
Freagraí scríofa
I am informed by the Revenue Commissioners that the full year yield to the Exchequer, estimated by reference to 2011 incomes, of changing the higher rate of tax by 1% would be approximately €180 million.
This figure is an estimate from the Revenue tax-forecasting model using actual data for the year 2008 adjusted as necessary for income and employment trends for the year 2011. It is therefore provisional and likely to be revised.
An Income Tax Ready Reckoner is available on my Department's website www.finance.gov.ie.
Arthur Morgan
Ceist:417 Deputy Arthur Morgan asked the Minister for Finance the return to the Exchequer in a full year if corporation tax was increased by 1% to 13.5%. [31874/10]
Amharc ar fhreagraThe yield in a full year to the Exchequer from increasing the current standard rate of Corporation Tax from 12.5 per cent to 13.5 per cent is tentatively estimated to be in the region of €235 million. The yield includes the effect of increasing the standard rate for manufacturing companies from 12.5% to 13.5%, with the termination of the 10% rate of Corporation Tax for these companies with effect from 31st December 2010.
This estimate does not take into account any possible behavioural change on the part of taxpayers as a consequence of such an increase.
However, it should also be noted that Ireland's low Corporation Tax (CT) rate plays an important role in attracting foreign direct investment to Ireland thereby increasing employment here. We also must consider Ireland's place in the new enlarged EU where CT rates are low in some new member states. Ireland must continue to remain competitive in this environment. For these reasons there are no plans to increase our present low CT rate.