Dáil Éireann Debate, Tuesday - 20 March 2018
116. Deputy Catherine Martin asked the Minister for Finance his plans to extend income tax relief to routine dental expenses, such as fillings and extractions, in view of the introduction of the sugar tax; and if he will make a statement on the matter. [12946/18]
Amharc ar fhreagraSection 469 of the Taxes Consolidation Act 1997 provides for relief at the standard rate of income tax (currently 20%) on certain health expenses incurred in the provision of health care.
For the purposes of the section "Health Care" is defined as the "prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability" but excluding routine ophthalmic treatment, routine dental treatment and unnecessary cosmetic surgery.
Therefore, in current legislation, the individual can claim tax relief in respect of non-routine dental care provided by a registered practitioner. While non-routine dental treatment is not defined in legislation, a non-exhaustive list of relevant procedures is available on the Revenue website at: http://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/health-expenses/dental-expenses.aspx. These include major interventions such as periodontal treatment for gum disease and orthodontic treatment.
Routine dental treatment is defined as "the extraction, scaling and filling of teeth and the provision and repairing of artificial teeth or dentures".
The exclusion of expenses incurred in respect of routine dental treatment has been in place since the relief’s inception in 1967. The rationale is that health expenses relief is broadly intended to provide assistance through the tax system in respect of significant or exceptional health expenses, but excluding those of a routine nature or minor nature.
However, the Deputy will be aware that there has in recent years been an increase in dental and optical benefits through the social insurance system. Budget 2017 extended Treatment Benefits to the self-employed, including a free dentist check-up examination once a year.
Additional treatments were added to both the optical and dental benefit schemes from 28th October 2017 for all qualifying individuals. Dental benefit seen the re-introduction of an annual scale and polish treatment in addition to the existing annual free examination. Optical benefit had the supply and repairs of a range of spectacles types re-introduced, in addition to the free once every two year free examination. Further information on these benefits can be provided by my colleague the Minister for Employment Affairs and Social Protection, Regina Doherty T.D.
The new tax on sugar-sweetened drinks is due to come into effect from 6th April, subject to approval from the European Commission. I would note however that hypothecation, the dedication of revenue from a specific tax for a particular expenditure purpose, is not a feature of the Irish tax system in general. My Department is opposed to the hypothecation of revenue funds as it reduces the flexibility of the Government to prioritise and allocate funds as necessary at a particular time.
An annual budget is allocated to the Department of Health as part of the estimates process and that budget is assigned according to the needs within that Department, including in relation to measures to tackle the problem of obesity.
