Michael McGrath (Cork South Central, Fianna Fail)
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Question 118: To ask the Minister for Finance the amount of money collected from the universal social charge for the first six months of the year; the amount which was expected to be collected; and the amount by which the universal social charge income exceeds the amount that would have been collected if the health levy and income levy had remained in place. [19911/11]

Michael Noonan (Limerick City, Fine Gael)
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The Universal Social Charge (USC) is a tax which replaces the income and health levies. It is intended to broaden the tax base in an equitable manner. It has a wider base and a lower rate when compared to the combined impact of the income and health levies. USC receipts are collected by the Revenue Commissioners as a component of income tax. I am informed by the Revenue Commissioners that it is estimated that receipts from the USC amounted to €1,218 million in the first six months of 2011. This compares to a projected yield of €1,241 million for the first six months so receipts were close to target.

Monthly profiles of receipts from the income and health levies, as they had previously applied, were not prepared as these levies have been replaced by the USC. Therefore, it is not possible to estimate with any precision the amount that they would have generated in the first six months of the year had they remained in place or to compare this to the amount that has been collected in USC receipts in the first half of the year.

Had the income and health levies remained in place, it is expected that they would have generated €1.5 billion and €2.1 billion, respectively, in receipts in 2011 or €3.6 billion in total. Receipts from the USC combined with arrears in respect of the income and health levies were estimated to generate €3.6 billion in 2011, thus ensuring revenue neutrality in 2011. However, as I have indicated over the course of the year as a whole, receipts from the USC and arrears in respect of the income and health levies are expected to generate the same amount as would have been generated had the levies remained in place.