Tax Data

Thursday, 7 November 2024

Questions (74)

Pearse Doherty

Question:

74. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question Nos. 88 and 89 of 16 October 2024, if he accepts that estimating the cost of increasing the standard fund threshold using only the available information about previous payments of chargeable excess tax will have underestimated the actual cost of this measure; if his officials provided a higher range scenario based potential behavioural change; if so, if he will provide that higher range scenario; and if he will make a statement on the matter. [45987/24]

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Written answers

Minister for Finance

As I set out in my replies to Parliamentary Question Nos. 88 and 89 of 16 October 2024 there is limited data available on which to base any costings in relation to changes to the SFT.

As there is not sufficient data available my officials could not prepare any costing on the basis of behavioural change. As discussed in detail in the report on the Examination of the SFT, considering these costs in isolation without allowing for the tax paid at draw down does not give an accurate indication of pensions tax expenditure costs.

My officials and Revenue will continue to monitor the measure as the changes to the SFT come into effect, including any data that becomes available in relation to costs associated with the increases.