Michael McGrath (Cork South Central, Fianna Fail)
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Question 189: To ask the Minister for Finance if he will respond to a query in relation to the application of the income levy on redundancy payments (details supplied). [45286/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that an exemption from income tax in respect of statutory redundancy is provided for in section 203 of the Taxes Consolidation Act 1997 and this exemption will also apply in relation to the income levy. In addition, section 201 of the Taxes Consolidation Act 1997, provides for a basic exemption on a redundancy package of €10,160 plus €765 for each complete year of service in the office or employment. There is also provision for a further increased exemption of €10,000 in circumstances where the employee is not a member of a pension scheme, or has given up his or her right to entitlement to a lump sum from the scheme.

The income levy will only be applied to that portion of any ex-gratia payment made by an employer on the termination of an office or employment which is in excess of these exemptions.

The income levy will be deducted at the rate applicable on the date of payment. The rate of income levy, operated on a weekly or monthly basis by an employer, is governed by the thresholds of 1% on the first €100,100, 2% on the next €150,020 and 3% thereafter.

Where an individual has an income levy charge in respect of a termination payment and this is deducted at a rate higher than that appropriate to his or her aggregate income for the year of assessment, any excess will be refunded when the full details of his or her circumstances are known at the end of the year of assessment.

Bernard Durkan (Kildare North, Fine Gael)
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Question 190: To ask the Minister for Finance when a P21 will issue for 2008 in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [45320/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have been advised by the Revenue Commissioners that they have no record of a request for a P21 from the person concerned. A Return of Income for 2008 has been issued to the person today to enable Revenue to deal with the request.

Fergus O'Dowd (Louth, Fine Gael)
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Question 191: To ask the Minister for Finance the way the introduction of an airport exit tax will affect aviation policy; and if he will make a statement on the matter. [40249/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy is aware, in Budget 2009 I announced that an air travel tax will come into force in respect of passengers departing from Irish airports on and from 30 March 2009. A general rate of €10 per passenger will apply, with a lower rate of €2 for shorter journeys.

The Finance Bill confirms the introduction of an air travel tax from 30 March 2009, however, I have taken account of concerns raised by the regional airports particularly those on the western seaboard. Consequently, the lower rate of €2 will apply to departures from any Irish airport where the destination is 300kms or less from Dublin airport. This means that all Irish departures to locations such as Manchester, Liverpool and Glasgow will be subject to the €2 rate. The airlines will be the liable persons for the tax, including paying it to Revenue.

Ireland is not unique in regard to applying a tax on air travel. A number of countries within the EU apply similar taxes including, the UK, France and the Netherlands, as do Australia and New Zealand. The proposed rates for the Irish air travel tax are not unreasonable both for shorter and longer journeys, when compared to rates in other countries. While aviation policy is primarily a matter for my colleague the Minister for Transport, the introduction of the air travel tax should have little, if any, impact on aviation policy.