Question No. 171 answered with Question No. 167.

Question No. 172 answered with Question No. 169.

Question No. 173 answered with Question No. 170.

Tax Code

Ceisteanna (174)

Pearse Doherty

Ceist:

174. Deputy Pearse Doherty asked the Minister for Finance the legislative tax changes which are due to take effect in 2019; the cost and impact of each on net fiscal space in 2019, for example, pre-committed plans regarding mortgage interest relief and so on. [21201/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

The principal tax measures for which legislation is in place and which will take effect in 2019 with an expected impact on the fiscal space are as follows:

- Finance Act 2017 legislated for the tapered extension of Mortgage Interest Relief through to the end of 2020. Mortgage Interest Relief is a tax relief based on the amount of interest paid in a tax year on a qualifying mortgage loan taken out between 2004 and 2012. The effect of the measure introduced in Finance Act 2017 was to provide for 75% of the relief in 2018, 50% of the relief in 2019 and 25% of the relief in 2020.

- Four measures have sunset clauses dated 31 December 2018 (cost figures relate to the last year published):

- HRI (Home Renovation Incentive) (s.477B of the Taxes Consolidation Act, 1997): Direct cost to the Exchequer was €21.4m in 2014, note that HRI relief is split into two years hence the lag in statistics);

- Start Your Own Business (s.472AA of the Taxes Consolidation Act, 1977): Direct cost to the Exchequer was €15.2m in 2015;

- Stock Relief (s.666 of the Taxes Consolidation Act, 1997) and Stock Relief for Young Trained Farmers (s.667B of the Taxes Consolidation Act, 1997): Direct cost to the Exchequer was €6.1m in 2015;

- Transfers of agricultural land to young trained farmers (s.81AA of the Stamp Duties Consolidation Act 1999): Direct cost to the Exchequer was €4.6m in 2016.

- The Deposit Interest Retention Tax (DIRT) rate is set to decrease by 2% in 2019 to 35% and by a further 2% in 2020 to 33% (this was provided for in section 21 of the Finance Act 2016).

The Deputy may also wish to note that a Charities VAT compensation scheme was announced during Budget 2018. This will take effect from 1 January 2018 but will be paid one year in arrears i.e. in 2019, charities will be able to reclaim some element of the VAT costs arising in 2018. Charities will be entitled to a refund of a proportion of their VAT costs based on the level of non-public funding they receive. A capped fund of €5 million will be available to the scheme in 2019. It is intended that the relevant legislative instrument to give legal effect to this provision will be introduced in 2018.

The effect of the above measures on fiscal space, along with other discretionary revenue measures are set out in Table A6 of the Stability Programme Update, which shows the net impact in 2019 as 0.0% of GDP.

Tax Yield

Ceisteanna (175)

Pearse Doherty

Ceist:

175. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be generated by measures (details supplied). [21202/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I am advised by Revenue that a Ready Reckoner is available on the Revenue Statistics webpage at www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx. This Ready Reckoner shows a wide range of detailed information, including changes to the Betting Duty rate (page 23). While the Ready Reckoner does not show all of the specific costings requested by the Deputy, others can be estimated from those shown on a pro-rata or straight line basis with those displayed in the Ready Reckoner. The additional yield from increasing the commission based tax on betting intermediaries to 20%, 24% and to 30% is estimated at €0.6m, €1.1m and €1.8m respectively in a full year.

As regards the difference between placing the 3% on each bet and on winnings, Revenue has no basis on which to estimate the yield or cost of this change.

Tax Yield

Ceisteanna (176)

Pearse Doherty

Ceist:

176. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be generated through increasing the tax on cigarettes by €0.10, €0.20 and €0.50 per packet, respectively, with a prorate increase on other tobacco products; and the estimated impact on the net fiscal space for 2019. [21203/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I am advised by Revenue that a Ready Reckoner is available on the Revenue Statistics webpage at www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx. This Ready Reckoner shows a wide range of detailed information, including estimates for the yield from changes in duties on tobacco (page 22). These estimates assume pro-rata increases in other tobacco products.

Universal Social Charge

Ceisteanna (177, 178, 179, 180)

Pearse Doherty

Ceist:

177. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised from the introduction of an additional USC rate (details supplied) on a person’s income in excess of €100,000. [21204/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

178. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised for the Exchequer from the introduction of an additional USC rate (details supplied) on a person’s income in excess of €120,000. [21205/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

179. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised from the introduction of an additional USC rate (details supplied) on a person’s income in excess of €140,000. [21206/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

180. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised for the Exchequer from the introduction of an additional USC rate (details supplied) on a person’s income in excess of €150,000. [21207/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 177 to 180, inclusive, together.

I am advised by Revenue that the estimated yield from the introduction of an additional rate of USC at the range of rates and the levels of income as set out by the Deputy are provided in the following tables:

Incomes greater than €100,000 subject to an additional USC rate of:

First Year €m

Full Year €m

Incomes greater than €120,000 subject to an additional USC rate of:

First Year €m

Full Year €m

1%

95

127

1%

80

109

2%

189

254

2%

160

218

3%

284

381

3%

239

327

4%

378

508

4%

319

436

5%

473

635

5%

399

545

6%

568

762

6%

479

654

7%

662

889

7%

559

763

Incomes greater than €140,000 subject to an additional USC rate of:

First Year €m

Full Year €m

Incomes greater than €150,000 subject to an additional USC rate of:

First Year €m

Full Year €m

1%

70

96

1%

66

91

2%

139

193

2%

131

183

3%

209

289

3%

197

274

4%

278

386

4%

262

365

5%

348

482

5%

328

457

6%

418

578

6%

394

548

7%

487

675

7%

459

640

These estimates have been generated by reference to 2018 incomes as calculated on the basis of actual data for the year 2015, the latest year for which returns are available, adjusted as necessary for income, self-employment and employment trends in the interim. The estimates are provisional and may be revised. These estimates assume the retention of the current 3% surcharge for Schedule D taxpayers on incomes in excess of €100,000.

Tax Data

Ceisteanna (181, 182, 183, 184, 185, 189)

Pearse Doherty

Ceist:

181. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering the personal pay as you earn and earned income credits by 0.7% per €1,000 on individual income between €100,000 and €170,000 per annum resulting in no entitlement to these tax credits when income is in excess of €170,000. [21208/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

182. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised in circumstances (details supplied). [21209/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

183. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering out the personal, PAYE and earned income credit by 2.5% per €1,000 on individual income between €100,000 and €140,000 per year resulting in no entitlement to these tax credits when income is in excess of €140,000. [21210/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

184. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering out the personal, PAYE and earned income credit by 2% per €1,000 on individual income between €100,000 and €150,000 per annum resulting in no entitlement to these tax credits when income is in excess of €150,000. [21211/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

185. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering out the PAYE and earned income credit by 5% per €1,000 on individual income between €100,000 and €120,000 per annum resulting in no entitlement to these tax credits when income is in excess of €120,000. [21212/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

189. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering out the PAYE credit and earned income credit from income in excess of €80,000, a reduced credit by 5% per €1,000 for gross income between €80,000 and €100,000 and a 0% credit on gross income in excess of €100,000. [21216/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 181 to 185, inclusive and 189 together.

I am advised by Revenue that the estimated yields from tapering the specified credits at the various thresholds as set out by the Deputy are given in the following tables:

Taper out of credits at incomes between €100,000 and €170,000 at a rate of 0.7% per €1,000:

First Year €m

Full Year €m

Taper out of credits at incomes between €100,000 and €170,000 at a rate of 0.7% per €1,000:

First Year €m

Full Year €m

PAYE

104

117

PAYE

104

117

Personal

180

221

Personal (Single + Widowed only)

13

17

Earned Income Credit

4.4

7.9

Earned Income Credit

4.4

7.9

Total

288

346

Total

121

142

Taper out of credits at incomes between €100,000 and €140,000 at a rate of 2.5% per €1,000:

First Year €m

Full Year €m

Taper out of credits at incomes between €100,000 and €150,000 at a rate of 2% per €1,000:

First Year €m

Full Year €m

PAYE

190

214

PAYE

173

194

Personal

303

366

Personal

279

338

Earned Income Credit

6.4

11.5

Earned Income Credit

6.1

10.8

Total

499

592

Total

458

543

Taper out of credits at incomes between €100,000 and €120,000 at a rate of 5% per €1,000:

First Year €m

Full Year €m

Taper out of credits at incomes between €80,000 and €100,000 at a rate of 5% per €1,000:

First Year €m

Full Year €m

PAYE

236

265

PAYE

403

453

Earned Income Credit

7.4

13.1

Earned Income Credit

10

18

Total

243

278

Total

413

471

I am advised by Revenue while a rate of 0.7% per €1,000 on incomes over €100,000 would not taper to zero at incomes of €170,000, it is assumed the relevant credits are reduced to zero for incomes above €170,000 in these scenarios.

I am also advised that the data provided provide the cost of tapering on a taxpayer unit basis, i.e. married persons or civil partners who have elected or who have been deemed to have elected for joint assessment are counted as one tax unit and it is not possible to provide this costing on an individual taxpayer basis. These estimates have been generated by reference to 2018 incomes as calculated on the basis of actual data for the year 2015, the latest year for which returns are available, adjusted as necessary for income, self-employment and employment trends in the interim. The estimates are provisional and may be revised.

Tax Yield

Ceisteanna (186, 187, 188)

Pearse Doherty

Ceist:

186. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering out the PAYE and earned income credit by 5% per €1,000 on individual income between €100,000 and €120,000 per annum resulting in no entitlement to these tax credits when income is in excess of €120,000, coupled with an additional USC rate of 2%, 3%, 4%, 5%, 6% and 7%, respectively in excess of €120,000. [21213/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

187. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering out the personal, PAYE and earned income credit by 2.5% per €1,000 on individual income between €100,000 and €140,000 per annum resulting in no entitlement to these tax credits when income is in excess of €140,000 coupled with an additional USC rate of 2%, 3%, 4%, 5%, 6% and 7%, respectively, in excess of €140,000. [21214/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

188. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from tapering out the personal, PAYE and earned icome credit by 2% per €1,000 on individual income between €100,000 and €150,000 per annum resulting in no entitlement to these tax credits when income is in excess of €150,000, coupled with an additional USC rate of 2%, 3%, 4%, 5%, 6% and 7%, respectively, in excess of €150,000. [21215/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 186 to 188, inclusive, together.

I am advised by Revenue that the estimated yields associated with the introduction of both a tapering of credits together with an additional rate of USC at the various levels and rates proposed by the Deputy are provided in the following tables:

Tapering of PAYE and Earned Income Tax Credits plus additional USC rate, at income levels in excess of €120,000, of:

First Year Yield

€m

Full Year Yield

€m

2%

403

496

3%

482

605

4%

562

714

5%

642

823

6%

722

932

7%

802

1,041

Tapering of PAYE, Personal and Earned Income Tax Credits plus additional USC rate, at income levels in excess of €140,000, of:

First Year Yield

€m

Full Year Yield

€m

2%

638

785

3%

708

881

4%

777

978

5%

847

1,074

6%

917

1,170

7%

986

1,267

Tapering of PAYE, Personal and Earned Income Tax Credits plus additional USC rate, at income levels in excess of €150,000, of:

First Year Yield

€m

Full Year Yield

€m

2%

589

726

3%

655

817

4%

720

908

5%

786

1,000

6%

852

1,091

7%

917

1,183

The data above provide the cost of tapering on a taxpayer unit basis, i.e. married persons or civil partners who have elected or who have been deemed to have elected for joint assessment are counted as one tax unit, and it is not possible to provide this costing on an individual taxpayer basis. These estimates are generated on estimated incomes in 2018, using latest actual data for the year 2015, adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised.

It should be noted that the above estimates do not take account of any behavioural or other impacts that might arise upon implementation of the measures costed.