Tuesday, 15 May 2018

Ceisteanna (167, 168, 171)

Pearse Doherty

Ceist:

167. Deputy Pearse Doherty asked the Minister for Finance the estimated savings made by reducing the maximum tax relief available on private pension contributions by percentage rates (details supplied). [21194/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

168. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised by reducing the earnings cap for pension contributions from €115,000 to €70,000, €65,000 and €60,000, respectively. [21195/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

171. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised by reducing the earnings cap for pension contributions from €115,000 to €60,000. [21198/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 167, 168 and 171 together.

I am advised by Revenue that the Ready Reckoner available on the Revenue Statistics webpage at: www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx, on page 11 shows the estimated cost or yield from changing combinations of (i) the maximum tax relief available on private pension contributions or (ii) the ceiling on the annual earnings limit for determining maximum allowable contributions for pension purposes. While not all of the scenarios requested by the Deputy are shown in the Ready Reckoner, the others can be calculated on a straight-line or pro-rata basis from the information provided.

Using this information, the estimated savings made by reducing the maximum tax relief available on private pension contributions are as follows:

Rate

40%*

35%

32%

30%

28%

25%

22%

20%

Estimated Savings €m**

0

87.5

140

175

210

262.5

315

350

*current rate of relief.

**based on pro-rata basis

The estimated savings of reducing the earnings cap for pension contributions are as follows:

Cap Amount

Estimated Savings €m

115,000

0

70,000

110

65,000

128

60,000

147

*current rate of relief.