Written answers
Wednesday, 20 January 2016
Department of Finance
Tax Code
Michael McGrath (Cork South Central, Fianna Fail)
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53. To ask the Minister for Finance the background to the 3% stamp duty that applies to all non-life insurance policies; the amount that has been collected to date in respect of the stamp duty; the anticipated yield in 2016; how this money is spent; if he will ring-fence the funding for flood-related measures; and if he will make a statement on the matter. [2424/16]
Michael Noonan (Limerick City, Fine Gael)
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Section 125 of the Stamp Duties Consolidation Act 1999 provides for a levy of 3% on the gross amount received by an insurer in the form of premiums paid in respect of non-life policies covering risks which are located in the State. This levy applies to most non-life insurance premiums with the exception of re-insurance, voluntary health insurance, marine, aviation and transit insurance, export credit insurance and certain dental insurance contracts.
The levy was originally introduced in 1982 at a rate of 1% of chargeable premiums. The rate was increased to 2% in the Finance Act 1993 and to the current rate of 3% in Finance Act 2009. The proceeds of the levy on non-life insurance form a part of general stamp duty receipts and are paid into the Central Fund along with other tax receipts.
I am advised by the Revenue Commissioners that the available data on amounts collected to date in respect of the stamp duty levy on non-life insurance policies is set out in the following table.
Year | Yield €m |
---|---|
2015 | 108.05 (Provisional) |
2014 | 103.35 |
2013 | 98.73 |
2012 | 104.16 |
2011 | 106.40 |
2010 | 109.47 |
2009 | 86.39 |
2008 | 80.10 |
2007 | 85.36 |
2006 | 88.28 |
2005 | 90.8 |
2004 | 97.7 |
2003 | 99.7 |
2002 | 87.2 |
2001 | 69.1 |
I am further advised that the anticipated yield in 2016 is in the region of €116.05 million.
I am generally not in favour of the hypothecation of taxes as it reduces the flexibility of the Government to prioritise and allocate funds as necessary at a particular time.
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