Róisín Shortall (Dublin North West, Labour)
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Question 402: To ask the Minister for Finance if PRSI, the health levy, and the income levy will be tax deductible for pension contribution purposes in addition to the standardised tax relief rate for pensions of 33% as proposed in the national pensions framework. [33441/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Tax relief on individual pension contributions is currently allowed at the taxpayer's marginal income tax rate, that is, at the standard or higher rate of income tax as appropriate in each case. The availability of tax relief at 33% to all taxpayers regardless of their marginal rate would result in a reduction in the tax relief on pension contributions available to higher rate taxpayers and an additional incentive to pension savings for standard rate taxpayers.

In the revised Programme for Government, the Government has committed to the introduction of a new pension savings incentive will be set at a rate equivalent to 33% tax relief rather than the existing marginal rate relief. This commitment is also included in the National Pensions Framework. The Framework also makes clear that PRSI and Health Levy relief on pension contributions will be in addition to the 33% rate of tax relief and the mechanism for delivering this relief will be developed during the implementation phase of the Framework.