Ruairi Quinn (Dublin South East, Labour)
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Question 237: To ask the Minister for Finance the cost of abolishing the €125 and €250 deduction that is applied in calculating tax relief on medical expenses; and if he will make a statement on the matter. [36290/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Tax relief for health expenses is allowable as a deduction against income at the taxpayer's marginal rate for annual expenses incurred in excess of €125 per person. I am informed by the Revenue Commissioners that data on health expenses incurred by individuals where the total amount of expense falls below the threshold are not recorded centrally on Revenue tax records. There is, therefore, no statistical basis on which an estimate of the potential cost to the Exchequer of abolishing the threshold could be compiled in respect of these expenses.

The cost to the Exchequer of abolishing the threshold in respect of claims where the total amount of qualifying expenses exceeds the threshold is estimated at €9 million in a full year based on Revenue tax records of such claims for the income tax year 2003, the most recent year for which the relevant information is available.