Dáil Éireann Debate, Tuesday - 7 July 2026
266. Deputy Pádraig O'Sullivan asked the Tánaiste and Minister for Finance the estimated first and full-year costs of reducing the standard and higher rates of taxation by 1% each, the number of people impacted by such reductions, in tabular form; and if he will make a statement on the matter. [51371/26]
View answerI am informed by Revenue that the estimated first and full year costs, together with the estimated number of taxpayer units expected to benefit by the proposed 1% rate band reductions, are set out in the table below.
|
Tax Rate change |
First Year cost €m |
Full Year cost €m |
Taxpayer Unit beneficiaries |
|
20% reduced to 19% |
940 |
1,070 |
2.2 million |
|
40% reduced to 39% |
480 |
570 |
1.1 million |
I am informed by Revenue that these estimates are rounded and for 2026 and are based on tax returns for the latest year available, currently 2023, and adjusts for estimated income and populations changes in in the interim (the period 2023 to 2026). A taxpayer unit refers to individuals except in the case of couples who are jointly assessed, in which case the couple are counted as one taxpayer unit.
