Bernard Allen (Cork North Central, Fine Gael)
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Question 77: To ask the Minister for Finance his views on the heavy reliance of the Exchequer on revenue from the housing sector; and if he will make a statement on the matter. [39130/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Activity in the housing sector impacts primarily on VAT, Stamp duty and Capital gains tax. Housing market activity also impacts on Income tax and PRSI receipts and Corporation tax from construction sector company profits.

While revenues from housing market activity such as Stamp duty and Capital gains tax have made an increasing contribution to the Exchequer in recent years, we are not overly reliant on receipts from these sources. For example, taken together the Stamp duty and Capital Gains tax tax-heads were forecast to contribute just 11 per cent of total targeted tax revenues in 2006. In contrast the 4 main tax-heads — VAT, Income tax, Corporation tax and Excise were forecast to account for just over 87 per cent of tax receipts this year.

Care has been taken not to plan the public finances around an assumption that receipts from Stamp duty and Capital gains tax will continue to grow in future years as they have in the recent past. This is a prudent and sensible approach to take.