John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 259: To ask the Minister for Finance the likely loss to the Exchequer of doubling the rate of capital gains tax in view of the significant increases in revenues since it was reduced to 20%. [12204/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The revenue yield from CGT depends on several factors: the rate and composition of economic growth; the levels of economic activity; the state of the property market; investor expectations for the future; taxpayer behaviour and preferences, and the rate of tax itself. I am unable to isolate the effect of a rate change on its own. All one can say is that when the rate of CGT was last at 40%, in 1997, the yield was €168 million. The current yield is €1.5 billion, in 2004, but the increase in revenue was no doubt due to a combination of all the factors mentioned.