Richard Bruton (Dublin North Central, Fine Gael)
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Question 218: To ask the Minister for Finance the tax revenue collected from the income levy in 2009 and its projected revenue in 2010; the way this revenue is split between the three different rates at which the income levy is collected, for both 2009 and 2010. [15260/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The introduction of the Income Levy was announced in Budget 2009 and it took effect in January 2009. The rates at which the Levy is charged were increased in the Supplementary Budget of April 2009.

The Income Levy is collected by the Revenue Commissioners as a component of Income Tax. I am informed by the Revenue Commissioners that it is estimated that €1.1 billion was collected from the Income Levy in 2009. In Budget 2010, it was forecast that Income Tax receipts of €11,530 million would be collected in 2010 and it is expected that the yield from the Income Levy will account for about €11⁄2 billion of the overall amount forecast for Income Tax.

As the Income Levy is collected as a component of Income Tax, the breakdown between the two must be estimated until such a time as the final tax returns for 2009 are received and processed. Self-employed Income Tax returns for 2009 are not due to be submitted until October of this year. Consequently, it is not possible to provide an exact breakdown of the Income Levy on a rate by rate basis at this time. However, on the basis of indicative information from Revenue, it is expected that almost three quarters of the estimated Income Levy yield will arise from the lowest rate, which was the composite rate of 1.67% for 2009 and the 2% rate for 2010. The top composite rate in 2009 was 5% and it is estimated that 12% of the yield was paid at this rate. The top rate for this tax year is 6% and it is expected that about 151⁄2% of the overall yield will come from those paying at this rate.

Finally, it must be stressed that the figures for both 2009 and 2010 are

estimates and as such subject to revision at a later stage.