Clare Daly
Ceist:163. Deputy Clare Daly asked the Minister for Finance the amount of revenue that has been lost to the Exchequer as a result of measures (details supplied). [35920/16]
Amharc ar fhreagraTuesday, 22 November 2016
Ceisteanna (163)
Freagraí scríofa
I am advised by Revenue that the 2015 Budget increases to the Income Tax standard rate band thresholds and the reduction in the higher Income Tax rate from 41% to 40% generated an estimated first and full year cost to the Exchequer of €292 million and €405 million respectively. Due to the nature of the interaction between the two Income Tax components within this package, it is not possible to identify the specific cost of the increase to the income tax thresholds. These estimated costs were published in the 2015 Budget Book.
Regarding Budget 2016, the estimated first and full year costs to the Exchequer from the changes to employers' PRSI threshold were in the order of €6 million and €7 million respectively. The estimated first and full year costs to the Exchequer from the changes in the threshold, rates and bands related to Universal Social Charge (USC) were in the order of €561 million and €772 million respectively.
In relation to the cuts to Capital Gains Tax, it is assumed the Deputy is referring to the revised Entrepreneur Relief announced in Budget 2016. I am advised by Revenue that the estimated cost of the introduction of this relief was estimated at that time at €25m and €27m on a first and full year basis respectively as published in the 2016 Budget Book.
Regarding Budget 2017, the estimated first and full year costs to the Exchequer from the changes in USC rates and bands were in the order of €335 million and €390 million respectively. The estimated first and full year cost to the Exchequer from the increase in the Earned Income Credit from €550 to €950 is in the order of €33 million and €58 million respectively. In relation to Capital Acquisition Tax inheritance tax changes, it is assumed the Deputy is referring to the increase in thresholds. The estimated cost of these changes was estimated at the time to be in the region of €22 million on a first year basis. These estimated costs were published in the 2017 Budget Book.