Pearse Doherty
Ceist:402. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of indexing tax bands and tax credits (details supplied). [30389/22]
Amharc ar fhreagraTuesday, 14 June 2022
Ceisteanna (402)
Freagraí scríofa
Based on Revenue’s latest Ready Reckoner (Post-Budget 2022) the estimated costs on a first and full year basis of the Deputy’s proposed request are set out in the tables below. In addition, the tables also display the nominal increase as a result of the proposed adjustments.
Table 1 – 1% increase in the standard rate tax bands and the main income tax credits
|
Measure |
Adjustment |
First year cost |
Full year cost |
|
Single standard rate band* |
An increase of €368 from €36,800 to €37,168 |
€80m |
€90m |
|
Personal tax credits |
· An increase of €17 from €1,700 to €1,717 (single person) · An increase of €34 from €3,400 to €3,434 (married persons or civil partners) |
€40m |
€45m |
|
Employee tax credit |
An increase of €17 from €1,700 to €1,717 |
€30m |
€35m |
|
Earned income tax credit |
An increase of €17 from 1,700 to €1,717 |
€2m |
€3m |
*the cost includes commensurate increases for persons who are married or in civil partnerships.
Table 2 – 2% increase in the standard rate tax bands and the main income tax credits
|
Measure |
Adjustment |
First year cost |
Full year cost |
|
Single standard rate band* |
An increase of €736 from €36,800 to €37,536 |
€160m |
€180m |
|
Personal tax credits |
· An increase of €34 from €1,700 to €1,734 (single person) · An increase of €68 from €3,400 to €3,468 (married persons or civil partners) |
€80m |
€90m |
|
Employee tax credit |
An increase of €34 from €1,700 to €1,734 |
€60m |
€70m |
|
Earned income tax credit |
An increase of €34 from 1,700 to €1,734 |
€4m |
€6m |
*the cost includes commensurate increases for persons who are married or in civil partnerships.