Pat Carey (Dublin North West, Fianna Fail)

The initiative on health expenses relief will yield €120 million in 2010 and €150 million in a full year. The changes provided for in the Finance Bill follow on from the changes made in Finance Act 2007, that is, the removal of the de minimis threshold of €125 for a single individual and €250 for a married couple. The Finance Act 2007 also provided for the removal of the requirement that there be a defined relationship between the taxpayer and the person who is the subject of the tax claim.

Standard rating health relief expenses will make the tax system fairer and more equitable for all taxpayers. The programme for Government commits to increasing the fairness of the tax system and this measure is being introduced in line with this commitment. The standardising of health expenses relief is in line with other reliefs such as rent relief, trade union subscriptions and so on. The standard rating of health expenses relief will mean better value for money for the Exchequer and will ensure the relief will benefit the broadest range of taxpayers in a fair and equitable manner. It is difficult to justify reliefs for one sector of society just because they earn more than another sector. Health expenses relief is an expensive relief and has quadrupled in the past four years. It has risen in cost from €100 million in 2004 to €400 million in 2008. It is difficult to see how we can afford such a generous relief in these challenging economic times. There can be no doubt that the savings accrued from standard rating health expenses relief, some €150 million in a full year, will raise much needed revenue. The Minister has received a number of submissions from the dental profession setting out its concerns in this area.