Dáil Éireann Debate, Tuesday - 8 October 2013
149. Deputy Kevin Humphreys asked the Minister for Finance the projected additional yield in a full year if capital gains tax was increased from 33% to 35%, taking into account 2013 returns to date; and if he will make a statement on the matter. [41912/13]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the full year yield to the Exchequer, based on the expected outturn in 2014, from increasing the CGT tax rate from 33% to 35% could be in the region of €28 million. This figure includes corporate gains. However, this estimate assumes no behavioural changes on the part of taxpayers, and increases in rates may have a significant behavioural impact and may not produce a corresponding increase in tax yield. In current economic conditions any estimate of additional yield must be treated with caution. In addition, increasing the rate could, in theory, lead to a reduction in yield from the tax.
