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

I move amendment No. 8:

In page 13, between lines 28 and 29, to insert the following:

“The linking of DIRT rate and Exit Tax rate on Life Assurance policies

10. The Minister shall, within three months of the passing of this Act, prepare and lay before the Oireachtas a report on the breaking of the link between the rate of DIRT and the rate of exit tax from Life Assurance policies, including the impact of this on life assurance savers.”.

The issue I raise is the breaking of the link between the DIRT tax rate and the exit tax rate on certain life assurance policies and I am seeking a report on the issue. In last year's budget the decision was made to reduce DIRT tax by 2% each year up to 2020. Historically and up to the past 20 years, the DIRT tax rate was linked to the exit tax rate on life assurance investment products. I understand there are several hundred thousand savers in the country with such products and I am seeking to establish the policy position of Government on this. If this trend continues, DIRT tax will be reduced to 33%, which I welcome, but the exit tax will be kept at 41% and we will have a significant differential - 8% - when up to last year the rates were identical. The issue is whether the Minister is discriminating between different types of savings products. What is the rationale behind this? Is it simply about the cost of extending the reduction to DIRT tax to the exit tax on the investment products in question?

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