Dáil Éireann - Volume 437 - 26 January, 1994

Written Answers. - Mortgage Interest and VHI Relief.

Mr. Yates Mr. Yates

194. Mr. Yates asked the Minister for Finance the cost of mortgage relief in 1993 arising out of the changes made in the 1993 budget, and the lowering of interest rates; and if the cost was less than that anticipated, he will quantify the extent of this.

Minister for Finance (Mr. B. Ahern) Bertie Ahern

Minister for Finance (Mr. B. Ahern): The relevant statistics available are in terms of post-budget 1993.

The cost to the Exchequer of mortgage interest relief in terms of revenue foregone in the period from 6 April 1993 to 31 December 1993 inclusive, that is, the period in 1993 when the budget changes and the lower interest rates were effective, is estimated at £87 million. This estimate is some £62 million less than the corresponding cost estimated at the time of the 1993 budget.

Mr. Yates Mr. Yates

195. Mr. Yates asked the Minister for Finance the cost of maintaining the VHI tax relief in 1994.

Minister for Finance (Mr. B. Ahern) Bertie Ahern

Minister for Finance (Mr. B. Ahern): The full year cost to the Exchequer, estimated by reference to the income tax year 1994-95, of maintaining the current tax relief for medical insurance is expected to be of the order of £70 million.

Mr. Yates Mr. Yates

1478

[1478] 196. Mr. Yates asked the Minister for Finance the saving to the Exchequer or the increase in revenue if the allowances of mortgage relief and VHI relief were only to be allocated at the standard rate of tax.

Minister for Finance (Mr. B. Ahern) Bertie Ahern

Minister for Finance (Mr. B. Ahern): The full year yield to the Exchequer, estimated by reference to the income tax year 1994-95, arising from confining tax relief to a maximum rate of 27 per cent is a follows:

Dáil Éireann 437 Written Answers. Mortgage Interest and VHI Relief.

Questions

19940126