Brian Hayes (Dublin South West, Fine Gael)
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Question 198: To ask the Minister for Finance, following proposals from the Dutch and Swedish authorities to amend their excise structure to the higher specific rates, 70% and 76.5%, respectively, of tax on tobacco products which is possible through the EU excise directive effective from 1 January 2011, his plans to follow and if so, the changes envisaged; and if he will make a statement on the matter. [40198/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In accordance with the relevant EU Directive the overall excise duty on cigarettes is made up of a specific (fixed) element and an ad valorem element. Ireland already applies a high specific duty element and a low ad valorem element in setting its excise duty for cigarettes relative to other Member States. It is intended to continue that approach in setting our excise duty for cigarettes. It has also to be recognised that Ireland has the highest prices and excise duty levels for cigarettes in the EU. For example the level of excise duty on cigarettes in Ireland (€5.22 for a packet of 20) is double that in Sweden, and slightly less than double that in The Netherlands.

Leo Varadkar (Dublin West, Fine Gael)
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Question 199: To ask the Minister for Finance if he plans to introduce a separate rate of tax on individual incomes over €100,000 and married couple incomes over €200,000, the level such a tax would need to be to raise €1 billion, €2 billion and €4 billion in a full year; and if he will make a statement on the matter. [40199/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2011 incomes, of a 1% point increase in the top rate of income tax for those single individuals with incomes over €100,000 and married couples with incomes over €200,000 as referred to by the Deputy would be of the order of €57 million. Consequently, the top rate of income tax would need to increase to 59%, 76% and 111% to yield in the region of €1 billion, €2 billion and €4 billion in a full year respectively. These estimates are based on confining the increased tax rate to the segment of income that is in excess of the stated thresholds of €100,000 and €200,000. These figures are estimates from the Revenue tax-forecasting model using actual data for the year 2008 adjusted as necessary for income and employment trends for the year 2011. They are therefore provisional and likely to be revised. It should be noted that a married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.