Dáil Éireann Debate, Wednesday - 20 July 2016
114. Deputy Michael McGrath asked the Minister for Finance the additional fiscal space as a result of the non-indexation of tax bands per annum from 2017-2021; and if he will make a statement on the matter. [23298/16]
Amharc ar fhreagraThe Programme for Partnership Government 2016 sets out its strategy that the income tax system will not be indexed. As part of the preparations for the recent Summer Economic Statement 2016, it was estimated that a Government policy decision not to index the income tax system would contribute approximately a cumulative €2 billion to the level of fiscal space over the period 2017 to 2021, resulting in an estimated total of €11.3 billion of fiscal space over the corresponding period. This is a policy decision which will need to be confirmed by the Government in advance of each Budget.
