Ruairi Quinn (Dublin South East, Labour)
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Question 115: To ask the Minister for Finance the cost to the Exchequer of adjusting the tax bands in order that a couple, both earning, could earn up to €100,000, while paying only tax at the standard rate. [8165/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that, assuming the enactment of the changes announced in the 2007 Budget, the full year cost to the Exchequer is estimated at €1,430 million.

This cost estimate assumes that the following changes would be made to the tax band structure:

increase the value of the single band to €50,000

increase the value of the lone parents band to €50,000

increase the value of the married one-earner band to €50,000

increase the value of the married two-earner band to €100,000, i.e. €50,000 to each spouse with no transferability between spouses.

This estimate is provisional and subject to revision. This would amount to full individualisation of the income tax bands.

Ruairi Quinn (Dublin South East, Labour)
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Question 116: To ask the Minister for Finance the cost to the Exchequer of increasing tax credits in order that couples earning up to €40,000 and a single person earning up to €20,000 will pay no tax. [8166/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As the bulk of taxpayers are in the PAYE sector, it is assumed that the changes mentioned by the Deputy are to be applied with employees primarily in mind.

On this basis, and assuming the enactment of the changes announced in the 2007 Budget, I am advised by the Revenue Commissioners that the full year costs to the Exchequer of ensuring that no tax is paid by single persons earning up to 20,000 euro per annum and married two-earner couples earning up to 40,000 euro could be achieved by an increase of 480 euro in the aggregate annual value of the basic personal tax credits. Such an increase would cost in the region of 880 million euro in a full year if achieved through an increase in the value of the basic personal tax credit, or about 600 million euro if achieved through an increase in the value of the employee (PAYE) tax credit or about 740 million euro if achieved though increases of equal value, that is, 240 euro each, in both the basic personal credit and the employee credit.

The increases mentioned in the question are assumed to apply in similar measure to widowed persons and to include the normal consequential increases in the tax credit for lone parents and the married tax credit.

If the intention is also to ensure that married one-earner couples would pay no tax on income up to 40,000 euro this would cost significantly more to achieve. Of course, if such a position were to apply, it would be the case that single earners and married two-earners would then be exempt from tax on income amounts in excess of 20,000 euro and 40,000 euro, respectively.

Ruairi Quinn (Dublin South East, Labour)
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Question 117: To ask the Minister for Finance the cost to the Exchequer of abolishing stamp duty for all first time buyers. [8167/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The stamp duty code favours first-time owner-occupying purchasers. First-time buyers of new residential property are exempt from stamp duty where the property has a floor size of 125 square metres or less and where they occupy the property. Where the floor size of new properties is greater than 125 square metres, stamp duty is charged on the site value at the current rates applying to second-hand residential properties or on 25% of the value of the property, excluding VAT — whichever is the greater.

In terms of second-hand residential property, first-time buyers are exempt from stamp duty on properties valued at €317,500 or less and pay reduced rates on property valued up to €635,000. The generous stamp duty reliefs in place for first-time buyers are designed to assist affordability.

I am informed by the Revenue Commissioners that first-time buyers are identifiable where they have qualified for the first-time buyer relief and paid stamp duty at a lower rate than other buyers. As current stamp duty rates for property transactions exceeding €635,000 are the same for all residential purchasers, it is not possible to distinguish first time buyer transactions in excess of these values.

Based on figures of 2006 outturn the full year cost to the Exchequer of abolishing stamp duty for all first time buyers who can be identified is estimated at €66 million.