Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I move amendment No. 96:

In page 95, between lines 35 and 36, to insert the following:"Deposit Interest Retention Tax

85. The Minister shall, within one month of the passing of this Act, prepare and lay before Dáil Éireann a report on options available for the charging of Deposit Interest Retention Tax at rate equivalent to the individual's marginal income tax rate.".

Although what I am proposing in this amendment in respect of deposit interest retention tax might be administratively difficult to achieve, there is an issue of equity to address, namely, that DIRT is currently levied at 41% irrespective of the income tax status of the recipient of the interest, with the exception of certain older persons who may apply for a DIRT-exempt account. Everybody else must pay DIRT at 41%, whether they have no income liable to income tax, pay tax at the standard rate of 20% or pay tax at the marginal rate of 40%. There is an issue of equity here, especially for the many people who are dependent on interest income. At a time when interest rates are so low, such income is lower now than it may have been in the past. At the same time, DIRT has increased substantially, from 27% to 41%. Moreover, for some people with unearned income, there is an additional 4% PRSI charge on the interest income. I am asking the Minister to review this issue with a view to ensuring greater equity.