Written Answers Nos. 401-420
403. Deputy Pearse Doherty asked the Minister for Finance the estimated cost to the Exchequer in 2025, and specifically from 1 January 2025 to 1 October 2025, of not proceeding with the scheduled increase in excise duty on petrol, diesel and marked gas oil, respectively, on 1 August 2024. [33233/24]
Amharc ar fhreagraI am advised by Revenue that the estimated cost to the Exchequer in 2025, and specifically for the period 1 January 2025 to 1 October 2025, of not proceeding with the scheduled increase in the non-carbon component Mineral Oil Tax rates on petrol, diesel and marked gas oil respectively on 1 August 2024 is shown in the following table.
|
Fuel Type |
MOT €m |
VAT €m |
Total €m |
|
Petrol |
25.2 |
5.8 |
31.0 |
|
Diesel |
65.1 |
4.8 |
69.9 |
|
MGO |
10.6 |
0.6 |
11.2 |
|
Total |
100.9 |
11.2 |
112.1 |
405. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of increasing personal, employee and earned income tax credits by €50 in each of the years 2025, 2026, 2027, 2028 and 2029, respectively; and if this costing includes the married or in a civil partnership tax credit, widowed person or surviving civil partnership credit and widowed parent or surviving civil partner bereavement credit. [33237/24]
Amharc ar fhreagra406. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of increasing personal, employee and earned income tax credits by €75 in each of the years 2025, 2026, 2027, 2028 and 2029, respectively, and to clarify if this costing includes the married or in a civil partnership tax credit, widowed person or surviving civil partnership credit and widowed parent or surviving civil partner bereavement credit. [33238/24]
Amharc ar fhreagra407. Deputy Pearse Doherty asked the Minister for Finance the cost of increasing personal, employee and earned income tax credits by €100 in each of the years 2025, 2026, 2027, 2028 and 2029, respectively, and to clarify if this costing includes the married or in a civil partnership tax credit, widowed person or surviving civil partnership credit and widowed parent or surviving civil partner bereavement credit. [33239/24]
Amharc ar fhreagraI propose to take Questions Nos. 405 to 407, inclusive, together.
The estimated cost of increasing the main tax credits can be found in the Revenue Ready Reckoner (Post Budget 2024 – page 5), available on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx
An update of the Ready Reckoner is due to issue in the coming weeks.
Amounts other than those shown can be extrapolated using a straight line or pro-rata calculation. For the convenience of the Deputy, the relevant costs are set out in the tables below.
|
Tax Credit |
Increase |
First Year (€m) |
Full Year (€m) |
|
Single Personal |
50 |
54.5 |
62 |
|
Married/Civil Partnership |
100 |
74 |
86 |
|
Widowed Person/Surviving Civil Partner |
50 |
3.7 |
4.2 |
|
Widowed Parent/Surviving Civil Partner Bereavement |
50 |
0.1 |
0.1 |
|
PAYE |
50 |
109 |
123 |
|
Earned Income |
50 |
5 |
10 |
|
Total |
246 |
285 |
|
Tax Credit |
Increase |
First Year (€m) |
Full Year (€m) |
|
Single Personal |
75 |
81.8 |
93 |
|
Married/Civil Partnership |
150 |
111 |
128.3 |
|
Widowed Person/Surviving Civil Partner |
75 |
5.5 |
6.3 |
|
Widowed Parent/Surviving Civil Partner Bereavement |
75 |
0.15 |
0.15 |
|
PAYE |
75 |
163.5 |
184.5 |
|
Earned Income |
75 |
7.5 |
15 |
|
Total |
370 |
428 |
|
Tax Credit |
Increase |
First Year (€m) |
Full Year (€m) |
|
Single Personal |
100 |
109 |
124 |
|
Married/Civil Partnership |
200 |
148 |
171 |
|
Widowed Person/Surviving Civil Partner |
100 |
7.3 |
8.4 |
|
Widowed Parent/Surviving Civil Partner Bereavement |
100 |
0.2 |
0.2 |
|
PAYE |
100 |
218 |
246 |
|
Earned Income |
100 |
10 |
20 |
|
Total |
493 |
570 |
It should be noted that the total costs have been rounded to the nearest million.
I am advised by Revenue that estimates of tax costings for Income Tax are provided on the basis of the current Budget year (2024) rather than the next Budget year (2025) or outer Budget years. The Revenue Pre-Budget Ready Reckoner (due to be published end August) will also be on the basis of Budget year 2025. It is not possible to provide Budget year 2025 costings prior to August due to the nature and timing of the tax return data cycle.
I am further advised that Revenue cannot provide estimates for later years due to the unknown nature of the future tax base and future economic behaviour.
408. Deputy Pearse Doherty asked the Minister for Finance the revenue raised from tapering personal, employee and earned income tax credits by 2.5% per €1,000 on individual income between €100,000 and €140,000 per year, resulting in no entitlement to these tax credits when income is in excess of €140,000, in each of the years 2025, 2026, 2027, 2028 and 2029, respectively. [33240/24]
Amharc ar fhreagra409. Deputy Pearse Doherty asked the Minister for Finance the revenue raised from tapering personal, employee and earned income tax credits by 2.5% per €1,000 on individual income between €100,000 and €140,000 per year, resulting in no entitlement to these tax credits when income is in excess of €140,000, and assumptions made with respect of this estimate with regards to married people or civil partners. [33241/24]
Amharc ar fhreagra410. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised from tapering personal, employee and earned income tax credits by 2.5% per €1,000 on individual income between €100,000 and €140,000 per year, resulting in no entitlement to these tax credits when income is in excess of €140,000, having increased personal, employee and earned income tax credits by €50 in each of the years 2025, 2026, 2027, 2028 and 2029, respectively, for example, increasing tax credits by €50 would increase the yield of tapering personal, employee and earned income tax credits by 2.5% per €1,000 on individual income between €100,000 and €140,000 compared to not increasing tax credits. [33247/24]
Amharc ar fhreagra411. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue raised from tapering personal, employee and earned income tax credits by 2.5% per €1,000 on individual income between €100,000 and €140,000 per year, resulting in no entitlement to these tax credits when income is in excess of €140,000, having increased personal, employee and earned income tax credits by €75 in each of the years 2025, 2026, 2027, 2028 and 2029, respectively (for example, increasing tax credits by €75 would increase the yield of tapering personal, employee and earned income tax credits by 2.5% per €1,000 on individual income between €100,000 and €140,000 compared to not increasing tax credits. [33249/24]
Amharc ar fhreagra412. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue raised from tapering personal, employee and earned income tax credits by 2.5% per €1,000 on individual income between €100,000 and €140,000 per year, resulting in no entitlement to these tax credits when income is in excess of €140,000, having increased personal, employee and earned income tax credits by €100 in each of the years 2025, 2026, 2027, 2028 and 2029, respectively for example, increasing tax credits by €100 would increase the yield of tapering personal, employee and earned income tax credits by 2.5% per €1,000 on individual income between €100,000 and €140,000 compared to not increasing tax credits. [33256/24]
Amharc ar fhreagraI propose to take Questions Nos. 408 to 412, inclusive, together.
I am advised by Revenue that their micro-simulation modelling tool, Tax Modeller, is built to model scenarios on a taxpayer unit basis (i.e. including jointly assessed couples as one taxpayer unit). As such, it does not generate any outputs on an individualised basis, and it is therefore not possible to estimate changes to tax credits on an individual basis for a projected tax year, e.g. the tax year 2024.
However, incomes recorded on historic tax returns can be used to estimate the potential yield and/or cost associated with the adjustment of tax credits. As 2021 is the latest year for which full tax return data is currently available to be analysed, Revenue has undertaken estimates in relation to the 2021 tax year for the tapering of the tax credits referred to by the Deputy to provide an estimated yield that may arise from this proposal. This estimate is based on gross income.
It should be noted that although the values of the personal tax credit, PAYE tax credit and the earned income credit have increased since 2021, (as provided for in Budget 2022, 2023 and 2024), the 2021 values for the credits were utilised for consistency purposes in preparing these estimates. Based on this, I am advised by Revenue that the yield in 2021 from tapering the credits in the proposals outlined by the Deputy are available in the table below. Questions 33240/24 and 33241/24 are identical.
I am further advised that Revenue cannot provide estimates of specific aspects of the proposals in later years due to the unknown nature of the future tax base and future economic behaviour.
|
Proposal |
First Year Yield €m |
Full Year Yield €m |
First Year Cost of Increasing Credits Value €m |
Full Year Cost of Increasing Credits Value €m |
Net Effect €m |
Net Effect €m |
|
Tapering personal, employee and earned income tax credits by 2.5% per €1,000 on individual income between €100,000 and €140,000 per year, resulting in no entitlement to these tax credits when income is in excess of €140,000. |
325 |
395 |
N/A |
N/A |
325 |
395 |
|
Tapering personal, employee and earned income tax credits by 2.5% per €1,000 on individual income between €100,000 and €140,000 per year, resulting in no entitlement to these tax credits when income is in excess of €140,000 while increasing 2021 credit values by €50. |
335 |
405 |
220 |
255 |
115 |
150 |
|
Tapering personal, employee and earned income tax credits by 2.5% per €1,000 on individual income between €100,000 and €140,000 per year, resulting in no entitlement to these tax credits when income is in excess of €140,000 while increasing 2021 credit values by €75. |
340 |
410 |
330 |
385 |
10 |
25 |
|
Tapering personal, employee and earned income tax credits by 2.5% per €1,000 on individual income between €100,000 and €140,000 per year, resulting in no entitlement to these tax credits when income is in excess of €140,000 while increasing 2021 credit values by €100. |
345 |
415 |
440 |
510 |
-95 |
-95 |
413. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of increasing the home carer’s credit by €100 in each of the years 2025, 2026, 2027, 2028 and 2029 respectively. [33259/24]
Amharc ar fhreagra414. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of increasing the home carer’s credit by €50 in each of the years 2025, 2026, 2027, 2028 and 2029 respectively. [33261/24]
Amharc ar fhreagraI propose to take Questions Nos. 413 and 414 together.
The estimated cost of increasing the Home Carer’s Tax Credit by €50 and €100 can be found in the Revenue Ready Reckoner (Post Budget 2024). The Ready Reckoner is available on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx. An update of the Ready Reckoner is due to issue in the coming weeks.
Amounts other than those shown can be extrapolated using a straight line or pro-rata calculation. For the convenience of the Deputy, the relevant costs are set out below.
|
Increase |
First Year (€m) |
Full Year (€m) |
|
€50 |
4.0 |
4.0 |
|
€100 |
8.0 |
8.0 |
It is important to be aware that estimates of tax policy changes for Income Tax are provided on the basis of the current Budget year (2024) rather than the next Budget year (2025). The Budget year costings for 2025 are prepared for the party costings service and are used to feed into costings requested by the Department of Finance in advance of the Budget. The Revenue Pre-Budget Ready Reckoner (published end August) will also be on the basis of Budget year 2025.
I am further advised that Revenue cannot provide estimates for later years due to the unknown nature of the future tax base and future economic behaviour.
415. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of increasing the incapacitated child credit by €100 in each of the years 2025, 2026, 2027, 2028 and 2029 respectively. [33263/24]
Amharc ar fhreagra416. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of increasing the incapacitated child credit by €50 in each of the years 2025, 2026, 2027, 2028 and 2029 respectively. [33268/24]
Amharc ar fhreagraI propose to take Questions Nos. 415 and 416 together.
The estimated cost of increasing the Incapacitated Child Tax Credit by €50 and €100 can be found in the Revenue Ready Reckoner (Post Budget 2024).
The Ready Reckoner is available on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx
An update of the Ready Reckoner is due to issue in the coming weeks.
Amounts other than those shown can be extrapolated using a straight line or pro-rata calculation. For the convenience of the Deputy, the relevant costs are set out below.
|
Increase |
First Year (€m) |
Full Year (€m) |
|
€50 |
1.5 |
1.7 |
|
€100 |
3.0 |
3.4 |
I am advised by Revenue that estimates of tax costings for Income Tax are provided on the basis of the current Budget year (2024) rather than the next Budget year (2025). The Budget year costings for 2025 are prepared for the party costings service and are used to feed into costings requested by the Department of Finance in advance of the Budget. The Revenue Pre-Budget Ready Reckoner (due to be published end August) will also be on the basis of Budget year 2025.
I am further advised that Revenue cannot provide estimates for later years due to the unknown nature of the future tax base and future economic behaviour.
417. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of increasing the single person child carer tax credit by €100 in each of the years 2025, 2026, 2027, 2028 and 2029, respectively. [33269/24]
Amharc ar fhreagra418. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of increasing the single person child carer tax credit by €50 in each of the years 2025, 2026, 2027, 2028 and 2029, respectively. [33289/24]
Amharc ar fhreagraI propose to take Questions Nos. 417 and 418 together.
The estimated cost of increasing the Single Person Child Carer Credit by €50 and €100 can be found in the Revenue Ready Reckoner (Post Budget 2024).
The Ready Reckoner is available on the Revenue website at:
www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx
An update of the Ready Reckoner is due to issue in the coming weeks.
Amounts other than those shown can be extrapolated using a straight line or pro-rata calculation. For the convenience of the Deputy, the relevant costs are set out below.
|
Increase |
First Year (€m) |
Full Year (€m) |
|
€50 |
2.6 |
3.0 |
|
€100 |
5.2 |
6.0 |
I am advised by Revenue that estimates of tax costings for Income Tax are provided on the basis of the current Budget year (2024) rather than the next Budget year (2025). The Revenue Pre-Budget Ready Reckoner (due to be published end August) will also be on the basis of Budget year 2025. I am further advised that Revenue cannot provide estimates for later years due to the unknown nature of the future tax base and future economic behaviour.
419. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of increasing the income tax standard rate band by €500 in 2025, a further €500 in 2026, a further €500 in 2027, a further €500 in 2028 and a further €500 in 2029, respectively. [33292/24]
Amharc ar fhreagra420. Deputy Pearse Doherty asked the Minister for Finance the cost of increasing the income tax standard rate band by €1,000 in 2025, a further €1,000 in 2026, a further €1,000 in 2027, a further €1,000 in 2028 and a further €1,000 in 2029, respectively. [33295/24]
Amharc ar fhreagraI propose to take Questions Nos. 419 and 420 together.
The estimated cost of increasing the income tax standard rate band by €500 or by €1,000 can be found in the Revenue Ready Reckoner (Post Budget 2024).
The Ready Reckoner is available on the Revenue website at:
www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx
An update of the Ready Reckoner is due to issue in the coming weeks.
Amounts other than those shown can be extrapolated using a straight line or pro-rata calculation. For the convenience of the Deputy, the relevant costs are set out below.
|
Increase |
First Year (€m) |
Full Year (€m) |
|
€500 |
110 |
126 |
|
€1,000 |
217 |
249 |
I am advised by Revenue that estimates of tax costings for Income Tax are provided on the basis of the current Budget year (2024) rather than the next Budget year (2025). The Revenue Pre-Budget Ready Reckoner (due to be published end August) will be on the basis of Budget year 2025. I am further advised that Revenue cannot provide estimates for later years due to the unknown nature of the future tax base and future economic behaviour.
