John Cregan (Limerick West, Fianna Fail)
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Question 253: To ask the Minister for Finance the number of persons over 70 who pay tax; the total and average amount paid; the highest figure paid; if a total exemption for all persons over 70 is recommended; if a gradual increase in the exemption limit is more advisable; and if he will make a statement on the matter. [23768/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the relevant information available is in respect of income earners on tax records aged 65 years and over. On the basis of income tax returns received for 2002, the latest year for which the relevant data has been compiled, the available information is as follows: total numbers with a tax liability — 56,000; total amount of tax —€403 million; average amount of tax —€7,196, based on income earners aged 65 or over with a tax liability, €2,702, based on all income earners aged 65 or over.

Because of the Revenue Commissioners obligation to observe confidentiality in relation to the taxation affairs of individual taxpayers and small groups of taxpayers, the highest figure for tax paid cannot be divulged due to the small numbers of income earners with significantly high tax payments. It should be noted that a married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.

The Government's policy on taxation and the elderly is set out in An Agreed Programme for Government which refers to "delivering further real improvements to pensioners and people on low incomes". This has been the guiding principle underlying the tax treatment of elderly persons, including those aged over 70, in recent budgets.

The age exemption limits, under which those aged 65 or over are exempt from income tax up to specified limits, have been increased in every budget since 1997. In the last four budgets alone, the limits have increased by almost 53% which is well ahead of inflation. After budget 2005, they stand at €16,500 per annum in the case of a single or widowed person and €33,000 per annum in the case of a married couple where one spouse is or both spouses are aged 65 or over.

Within available resources, the focus has been on assisting elderly persons on low incomes through annual increases in the age exemption limits. Such an approach is considered preferable to one where elderly income earners who reach a particular age threshold would be completely exempted from income tax regardless of their income. However, I point out to the Deputy that in the 2002 tax year the majority of income earners aged 65 or over on Revenue's records had no liability for tax.