Pearse Doherty (Donegal, Sinn Fein)
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To move on to the issue of taxation on retirement savings in chapter 8, the commission recommended removing the annual earnings cap on tax relief provided to pension contributions. I am sure the witnesses are all aware of the Revenue statistics. Recommendation 8.6 is about better statistics and data. The Revenue statistics we rely on tell a story about the regressive take-up of this tax relief on pension contributions across the income distribution. The latest figures we have are from 2020, which I am sure the witnesses are aware of. They demonstrated that the cost of the tax relief on employee pension contributions stood at €1.2 billion, nearly €700 of which, €693 million, went to those earning incomes in excess of €100,000. The sum of €700 million is a staggering fact and statistic, meaning 60% of this tax relief goes to people already on gross incomes of about €100,000. It is the top 5% of income distribution. Did the commission not have any concerns about the extremely regressive nature and take-up in these pensions? When we in the political sphere talk about the importance of people saving for the future, which is crucial, including people who earn €100,000 and more, we are actually talking about middle-income earners who do not get this relief in any big way. It is highly concentrated, with 60% going to the top 5%. There appears to be an absence of recommendations on that, if I may say so. I wish to ask the witnesses their view on that.