Written answers
Wednesday, 8 February 2006
Department of Finance
Tax Yield
10:00 pm
Enda Kenny (Mayo, Fine Gael)
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Question 226: To ask the Minister for Finance the yield per year of income tax for each of the income tax rates, 20% and 42% for the years 2002, 2003, 2004 and 2005; and if he will make a statement on the matter. [4527/06]
Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that, as the application of the tax rates in a tax computation occurs before tax credits are applied, the credits are not apportioned between the tax charged at the different tax rates. It is not possible, therefore, to quantify reliably the amount of income tax directly attributable to the individual tax rates on a post tax credit basis.
However, I would refer the Deputy to page B.23 of the budget 2006 booklet, which contains a table detailing where all tax reliefs go. He will see that, of the €10.8 billion in relief for the tax year 2002, €5.6 billion or 52% went on personal tax credits and reliefs, €3.4 billion or 31% to help fund pensions and savings and well over €1 billion or 10% on capital allowances for traders, including farmers, to ensure their viability and job creation capacity. The vast bulk of tax relief each year thus goes to ordinary taxpayers at all income levels and to sustain business investment and jobs.
Enda Kenny (Mayo, Fine Gael)
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Question 227: To ask the Minister for Finance the annual yield of each rate VAT for the years 2002, 2003, 2004 and 2005; and if he will make a statement on the matter. [4528/06]
Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the figures for the annual VAT yield, on a net receipts basis, by rate are only available for the years 2002 to 2004, inclusive, and are estimated in the following table:
VAT Rate | % | 2002 | 2003 | 2004 |
â'¬ million | â'¬ million | â'¬ million | ||
Farmers flat | 4.3 | -116 | -108 | |
4.4 | -104 | |||
Reduced | 12.5 | 2,963 | ||
12.5/13.51 | 3,310 | |||
13.5 | 3,554 | |||
Standard | 20/212 | 5,997 | ||
21 | 6,514 | 7,267 | ||
Total | 8,844 | 9,716 | 10,717 | |
1. The 12.5% rate was increased to 13.5% with effect from 1 Jan 2003. | ||||
2. The 20% rate was increased to 21% with effect from 1 March 2002. |
The farmer's flat rate addition is shown in the above table as a minus figure because the rate is set to compensate unregistered farmers for the VAT that they incur on their business inputs. While a breakdown by rate of the annual VAT yield for 2005 is unavailable, the overall yield is a provisional €12.125 billion. The increase in VAT receipts reflects the underlying strength of the economy.
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