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Tax Yield

Dáil Éireann Debate, Tuesday - 22 September 2020

Tuesday, 22 September 2020

Ceisteanna (263)

Richard Boyd Barrett

Ceist:

263. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated amount that could be raised by imposing a 2% public health levy on the profits of private human health and pharmaceutical companies here including nursing homes and homecare agencies. [25569/20]

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Freagraí scríofa

The trading profits of companies in Ireland are generally taxed at the standard Corporation Tax rate of 12.5 %.

Some of the main features of the current Corporation Tax regime are its simplicity and that it applies to a broad base. Changing this rate (or imposing additional levies on corporate profits) would involve increased complexity and could change the attractiveness of Ireland's corporate tax offering. It is not possible to accurately predict the effect that changes to the rate would have on the behaviour and decisions of large, multinational companies. This uncertainty prevents a reliable estimate being made of any yield that might accrue to the Exchequer.

Notwithstanding the above, I am further advised by Revenue that on a straightforward mathematical basis and assuming no behavioural changes by companies, the potential yield from imposing a 2% levy on the profits of private human health and pharmaceutical companies, including nursing homes and home care agencies, is tentatively estimated to be in the region of €400 million in a year. This is a tentative estimate, calculated based on data using the system of sectoral classification of businesses by NACE code.

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