I am advised by Revenue that section 126AA of the Stamp Duties Consolidation Act 1999 imposes an annual levy on banks for each of the years 2017 to 2021 that is intended to raise a fixed amount of €150 million in each year. This fixed amount is apportioned between the banks on the basis of the amount of deposit interest retention tax (DIRT) paid by a particular bank in a specified year (the base year). The amount of the levy paid by a particular bank must therefore change whenever the base year changes. A change in the base year necessitates a change in the rate of the levy to ensure that the overall fixed amount of the yield is maintained.
The levy is currently charged at the rate of 59% of the DIRT paid in the 2015 base year, the base year for the years 2017 and 2018. The year 2017 is the base year for the years 2019 and 2020. In 2017 approximately €88 million DIRT was paid which was significantly lower than the amount paid in 2015. If left unchanged, the current rate of 59% would yield only €52 million when the levy for 2019 is due to be paid on 20 October 2019. The doubling of the current rate to 118% would yield approximately €104 million. The rate required to maintain the €150 million yield for the years 2019 and 2020 is 170%.
I announced in May that, to ensure that the €150 million yield is maintained, I intend to bring forward a Financial Resolution on Budget night 2019 increasing the rate of the levy to 170% to be charged on DIRT payments made in 2017. This will be subject to the enactment of Finance Bill 2019.
I am also advised by Revenue that, under section 851A Taxes Consolidation Act 1999, confidential taxpayer information may only be disclosed by Revenue in certain specified circumstances. These circumstances do not include the details of DIRT payments made by the banks who are subject to the bank levy. I cannot therefore provide details of the amount of the levy that currently applies, or that will apply, to individual banks.