Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

Question 85: To ask the Minister for Finance the reason the college registration fee is not tax deductible; the cost to the Exchequer of making the college registration fee tax deductible; and if he will make a statement on the matter. [38341/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

Section 473A of the Taxes Consolidation Act, 1997 provides, subject to certain conditions, for tax relief at the standard rate of income tax (20%) as regards qualifying fees paid by an individual in respect of a third level education course including a postgraduate course. Qualifying fees means tuition fees in respect of an approved course at an approved college. The maximum limit on such qualifying fees for the current academic year is €5,000 @ 20% (i.e the standard rate of income tax).

The tax relief is confined to tuition fees only and does not extend to items such as registration fees, administration fees, accommodation, etc. Tuition fees that are, or will be, met directly or indirectly by grants, scholarships, employer contribution or by other means are to be deducted in arriving at the net fees qualifying for tax relief.

As the Deputy will be aware, the State provides for free tuition fees for the majority of undergraduate courses. Therefore the State already commits large scale Exchequer resources towards the availability of third-level education.

Based on figures provided by the Department of Education and Skills on the amount of college registration fees paid in 2009, net of higher education grants, the estimated full year cost to the Exchequer of providing tax relief in respect of such fees at the standard rate of income tax (20%) would be of the order of €24 million.