Dáil Éireann Debate, Thursday - 17 September 2020
86. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of tax policy items in the July stimulus in 2020 and 2021, disaggregated by measure; and if he will make a statement on the matter. [24617/20]
Amharc ar fhreagraTax relief measures with a value of approximately €1.4 billion (net cost to Exchequer approximately €900 million) were introduced in the July Stimulus package.
The estimated cost of the reduced interest on tax debts measure is €5m in 2020 and €20 m in 2021.
The Stay and Spend scheme will cost an estimated €270m in total (upper-estimate). The cost of the scheme will arise across the two years 2021 and 2022.
The help to buy measure will cost an estimated additional €18m in total.
Based on previous estimates of tax expenditures on the cycle to work scheme, an estimated tax expenditure of €0.5m in 2020 and €1.5m in 2021 could arise.
The estimated cost of the enhanced and accelerated income tax relief for trading losses incurred by the self-employed is once-off proposal is €150m in 2020.
It is estimated that the reduction in the standard rate of VAT will cost some €440 million in total, €160 million in 2020 and €280m in 2021.
The measure on Corporation tax losses has no net cost in the medium term as it is an acceleration of a relief that already exists in the corporation tax code. However, it will release up to €450 million of liquidity in the current year to companies currently facing significant cash-flow difficulties.
I should add that it is not possible to provide an estimated cost for the debt warehousing measure because it is not clear when the warehoused debt will be paid. The zero interest period will cover most of 2021 for most taxpayers but taxpayer behaviour after that cannot be predicted.
