Richard Bruton (Dublin North Central, Fine Gael)
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Question 126: To ask the Tánaiste and Minister for Finance the respective cost to the Exchequer, in terms of tax receipts foregone, on the basis of projected 2008 activity levels, of cutting the 7% rate of stamp duty on residential property to 6%, 5% and 4%, while leaving the existing exemptions and thresholds unchanged. [15489/08]

Richard Bruton (Dublin North Central, Fine Gael)
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Question 127: To ask the Tánaiste and Minister for Finance the respective costs to the Exchequer, in terms of tax receipts foregone, on the basis of projected 2008 activity levels, of cutting the 9% rate of stamp duty on residential property to 8%, 7% and 6%, while leaving the existing exemptions thresholds unchanged. [15490/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 126 and 127 together.

I am informed by the Revenue Commissioners that the estimated cost of reducing the current 7% rate of stamp duty on residential property to 6%, 5% and 4% is estimated at €94 million, €188 million and €282 million respectively, based on Budget 2008 projections. The corresponding estimated cost of reducing the current 9% rate of stamp duty on residential property to 8%, 7% and 6% is estimated at €13 million, €26 million and €39 million respectively, on the same basis. As these costs are a function of the actual and estimated number of transactions, and the price levels at which these transactions take place, they are therefore sensitive to cyclical changes in the housing market.