Dáil Éireann Debate, Tuesday - 28 June 2022
224. Deputy Neale Richmond asked the Minister for Finance the estimated amount it would cost to increase the tax band of the incapacitated tax credit by €200; the full-year cost of the current tax credit; and if he will make a statement on the matter. [34139/22]
Amharc ar fhreagraBased on Revenue’s latest Ready Reckoner (Post-Budget 2022), the estimated costs on a first and full year basis of an increase in the value of the tax credit as mentioned by the Deputy are set out in the following table.
|
Measure |
Adjustment |
First year cost |
Full year cost |
|
Incapacitated child tax credit |
An increase of €200 from €3,300 to €3,500 |
€4m |
€4m |
In relation to the cost of the tax expenditure, approximately 30,700 taxpayer units availed of the incapacitated child tax credit in 2018 with an estimated cost of €92.7 million. It should be noted that 2018 is the latest year for which finalised Revenue data in respect of the incapacitated child tax credit is available.
Also, the full year costs of the incapacitated tax credit for the years 2004 to 2018 can be found on the Revenue website at:
www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx .
I am advised by Revenue that the associated data for 2019 are expected to be available shortly.
I would draw the Deputy's attention to the fact that the post-Budget 2022 Ready Reckoner is available on the Revenue Statistics webpage at:
www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx
Amounts other than those shown in the Ready Reckoner can be extrapolated using a straight line or pro-rata calculation.
