Dáil Éireann - Volume 446 - 02 November, 1994

Written Answers. - Taxation Statistics.

65. Mr. M. McDowell asked the Minister for Finance the full year cost in 1994 of allowances and reliefs (details supplied); and the estimated full year gain to the Exchequer of allowing the allowances available in 1994 at the standard 27 per cent rate only. [2533/94]

Minister for Finance (Mr. B. Ahern): Following is the information requested in so far as it is available:—

[1503] Cost to Exchequer of certain income tax allowances and reliefs.

Allowance or relief

Full Year Cost (Provisional for 1994-95)

£m

Single(1)

411.5

Married(1)

756.9

One Parent Family

14.0

Widowed (including widowed bereavement allowances)(1)

57.1

PAYE Allowance

251.4

PRSI Allowance

55.5

Dependent Relative

1.3

Medical Insurance

66.8

Permanent Health Benefit

2.2

Person employed to care for incapacitated taxpayer

0.2

Life Assurance

Abolished

Blind Allowance

0.2

Health Expenses

6.2

Exemption limits including general, child addition and aged(2)

79.2

Retirement Annuities (Self- Employed)

25.8

Rent Paid in Private Tenancies

1.3

(1)The figures show the aggregate cost of (a) the allowances granted to individuals effectively liable to tax and (b) the allowances which would have been accorded to individuals if the exemption limits did not apply to them.

(2)Includes the cost of marginal relief for taxpayers whose incomes are not greatly in excess of the exemption limits. It excludes the cost of the exemption limits where they do not exceed the level of the allowances indicated at (b) in footnote(1).

The gain to the Exchequer from confining these reliefs to the standard rate of 27 per cent is estimated to be of the order of £390 million. This estimate is tentative and is subject to a margin of error.

The estimate of yield does not include any yield from confining medical insurance relief to the standard rate as provision has already been made in the 1994 Finance Act for this change to take effect on a phased basis from 6 April, 1995.