Dáil Éireann Debate, Tuesday - 23 October 2012
181. Deputy Stephen S. Donnelly asked the Minister for Finance if he will calculate the return to the Exchequer of a 1 cent levy on all SMS messages sent nationally; and if he will make a statement on the matter. [46264/12]
Amharc ar fhreagraI am informed by ComReg that just over 12.6 billion SMS messages (that is, outgoing SMS traffic) were sent in the 12 months to the end of June 2012. On the face of it, this would imply a potential yield of €126m from a 1 cent levy on SMS messages. However, this yield cannot be directly inferred from the SMS traffic figure, as the levy’s imposition could result in considerable behavioural impact among consumers, and could have significant implications for the charging arrangements of providers.
While any additional revenue would be welcome in the current circumstances, wider social and economic factors which may militate against the introduction of a further tax on text messages would also have to be taken into account. It must also be borne in mind that mobile phone calls and text messages are already subject to VAT at 23%. An additional flat rate levy of the order referred to by the Deputy on text messages could significantly increase the overall rate of taxation on accounts, particularly given that the average monthly spend per user is of the order of €35.
