Question No. 189 answered with Question No. 181.

Tax Code

Ceisteanna (190, 192)

Pearse Doherty

Ceist:

190. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised by increasing capital acquisitions tax to 34%, 35% and 36%, respectively. [21217/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

192. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised by increasing the stamp duty on share transactions from 1% to 1.1%, 1.2%, 1.3% and 1.4%, respectively. [21219/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 190 and 192 together.

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 Capital Acquisitions Tax rate (page 15) and changes to Stamp Duty rate on share transactions (page 18). 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.

Tax Reliefs Data

Question No. 192 answered with Question No. 190.

Ceisteanna (191)

Pearse Doherty

Ceist:

191. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised from the abolition of tax relief for private health insurance premiums and the capping of such relief at 5%,10%,12%,15%,18% and 19%, respectively. [21218/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I am advised by Revenue that based on 2017 data, the yield to the Exchequer arising from the abolition of tax relief for private health insurance premiums is tentatively estimated to be in the order of €350 million.

The estimated yield to the Exchequer from reducing the current rate of tax relief as proposed by the Deputy would be as follows;

Proposed Cap

5%

10%

12%

15%

18%

19%

Estimated Yield €m

263

175

140

88

35

18

Question No. 192 answered with Question No. 190.

Tax Exemptions

Ceisteanna (193)

Pearse Doherty

Ceist:

193. Deputy Pearse Doherty asked the Minister for Finance the anticipated revenue from expected changes to legislation which have been modelled by his Department in regard to taxing some forms of tax exempt income such as gambling in casinos and so on. [21224/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

It is unclear what specific changes to the legislation the Deputy is referring to. However, I can confirm that the Department has not conducted any modelling in regard to tax exempt income from gambling in casinos.

Universal Social Charge Abolition

Ceisteanna (194)

Pearse Doherty

Ceist:

194. Deputy Pearse Doherty asked the Minister for Finance the estimated loss of revenue from abolishing the universal social charge in full. [21225/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

The loss to the Exchequer from abolishing USC would depend upon a number of factors, inter alia, the year in which it would end, labour market developments, and so on.

In 2018, the Universal Social Charge (USC) is projected to raise approximately €3.7 billion in Exchequer receipts terms. This represents approximately 17% of total expected income tax receipts and approximately 6% of the total expected tax receipts for 2018 based on Budget 2018 projections.

Universal Social Charge Exemptions

Ceisteanna (195, 196, 197, 198, 199, 200)

Pearse Doherty

Ceist:

195. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of exempting earners at or below €20,800 from USC. [21226/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

196. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of exempting earners at or below €19,698 from USC. [21227/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

197. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of exempting earners at or below €20,176 from USC. [21228/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

198. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of exempting earners at or below €20,384 from USC. [21229/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

199. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of exempting earners at or below €20,592 from USC. [21230/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

200. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of exempting earners at or below €20,280 from USC. [21231/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 195 to 200, inclusive, together.

I am advised by Revenue that the estimated costs of increasing the exemption threshold for USC to the levels set out by the Deputy are given in the following table:

USC Exemption Threshold €

First Year €m

Full Year €m

19,698

48

57

20,176

54

63

20,280

55

65

20,384

56

66

20,592

58

69

20,800

61

72

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.

Research and Development Supports

Ceisteanna (201)

Pearse Doherty

Ceist:

201. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue from limiting the research and development tax credit to a company’s corporate liability in a given period (details supplied). [21232/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I am advised by Revenue that on the basis of claims in respect of refundable research and development tax credit for the tax year 2016, the latest year available, the estimated cash flow yield from limiting the research and development tax credit to a company’s liability to tax could be in the region of €240m. However, this estimate takes no account of any change in taxpayer behaviour which might arise on foot of the introduction of such a measure.

VAT Rate Application

Ceisteanna (202, 203)

Pearse Doherty

Ceist:

202. Deputy Pearse Doherty asked the Minister for Finance the estimated extra fiscal space available in 2018 if the 9% VAT rate for the tourism sector was returned to 13.5%. [21233/18]

Amharc ar fhreagra

Pearse Doherty

Ceist:

203. Deputy Pearse Doherty asked the Minister for Finance the estimated extra fiscal space in 2018 if the 9% VAT rate for the hotel sector and not other tourism products was replaced with a 13.5% rate. [21234/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 203 and 202 together.

I am informed by Revenue that the Ready Reckoner, available at www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf (page 26), shows the impact of increases in VAT rates including the 9% rate. As shown in the Ready Reckoner, the yield from the restoration of the VAT rate from 9% to 13.5% across all goods and services is likely to be in the region of €520m for 2018. The yield from the restoration of the VAT rate from 9% to 13.5% specific to the accommodation sector is tentatively estimated to be in the region of €220m for 2018. Both estimates assume no resulting change in consumer behaviour.

Mortgage Interest Relief Data

Ceisteanna (204)

Pearse Doherty

Ceist:

204. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of maintaining mortgage interest relief at its current rate in 2019. [21235/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I am advised by Revenue that the estimated cost of Mortgage Interest Relief (MIR) in 2018 is €124m, while the projected cost of MIR in 2019 is €78m. These figures take account of the tapering out of the relief as a result of Budget 2018.

Therefore, it is estimated very roughly that the cost of retention of MIR at the 2018 ceilings and qualifying interest levels in 2019 would be an additional €46m.

Departmental Staff Data

Ceisteanna (205)

Micheál Martin

Ceist:

205. Deputy Micheál Martin asked the Minister for Finance the number of staff in his Department assigned solely or primarily to work on North-South issues; and if he will make a statement on the matter. [21264/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

There are a range of staff who carry out work that relates to North-South issues including four staff in the Brexit Unit and four staff in the International Relations Unit. In addition, staff in relevant policy areas will consider North-South issues as they arise. While there are no staff specifically assigned to North-South issues, this issue is to the fore in the aforementioned units.

Motor Insurance

Ceisteanna (206)

Pat Deering

Ceist:

206. Deputy Pat Deering asked the Minister for Finance the progress of the motor insurance key information report of the cost of insurance; the controls in place regarding the high cost of car insurance faced by specific professions (details supplied); and if he will make a statement on the matter. [21281/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

In relation to the Deputy’s first query, the Second Motor Insurance Key Information Report was published on my Department’s website on Friday 11 May: http://www.finance.gov.ie/updates/second-motor-insurance-key-information-report-may-2018/ . The Report is the second in a series of reports designed to address Recommendation 12 of the Cost of Insurance Working Group, which aim to increase the level of transparency of the insurance sector in advance of the establishment of the National Claims Information Database.

This Report provides information on overall ultimate claims costs trends from 2011 to 2016 for Insurance Ireland companies representing about 90% of the Irish motor insurance market. Ultimate claim costs are made up of paid claims (including partial payments), reserves/estimates of the amount yet to be paid and a further provision calculated by actuaries to allow for claims and information not yet reported at the valuation date. The Report breaks the information on ultimate claims costs trends down into Third Party Injury ultimate claims costs and Non-Injury ultimate claims costs including claims cost arising from damage, fire and theft, as well as windscreen claims. In addition, it provides details on earned premium income and exposure in the sector for the same years.

This Report represents a more detailed breakdown of claims costs compared with the first report and is another important step towards the establishment of the National Claims Information Database.

In relation to the second part of the question, I note that the Deputy is highlighting the premiums faced by those in particular professions, musicians in the example referenced.

As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, I am not in a position to direct insurance companies as to the pricing level or terms or conditions that they should apply in respect of particular categories of drivers or vehicles.

In making their individual decisions on whether to offer cover and what terms to apply, insurers will use a combination of rating factors, which include the age and type of the vehicle, as well as the age of the driver, the relevant claims record and driving experience, the number of drivers, the profession of the driver and how the car is used, etc. My understanding is that insurers do not all use the same combination of rating factors, and as a result prices and availability of cover varies across the market. In addition, insurance companies will price in accordance with their own past claims experience, meaning that in relation to particular categories, different insurance companies will have different views.