In overall terms, the estimated yield from the rate increase and the threshold reduction is €16 million in 2009 and €24 million in a full year. Deputies should also note that the legislation does not contain the current tax free group threshold figures. Instead, it contains figures which were set in 1999, indexed to the CPI. In order to achieve the intended reduction in the tax free group thresholds, it is necessary to insert the figures shown in the resolution, into the legislation. In other words, when the current figure of €381,000 for the group A tax free threshold is replaced by €304,775 and is multiplied by the appropriate CPI factor, it gives us a new group A tax free threshold, which will be €434,000.

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