Brendan Griffin (Kerry South, Fine Gael)
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To ask the Minister for Finance the reason the €120 million proposal to place a 1c levy on SMS and MMS was not adopted in Budget 2013; and if he will make a statement on the matter. [57546/12]

Michael Noonan (Limerick City, Fine Gael)
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The total number of SMS and MMS messages sent in the twelve months to the end of June 2012 was in the region of 12.6 billion. This would suggest a yield of c. €126 million from a 1 cent levy on such messages. However, the projected yield from such a levy cannot be directly inferred from the total number of messages sent, as the levy’s imposition could result in considerable behavioural impact among consumers, and could have significant implications for the charging arrangements of providers. The matter will be kept under review by my Department. I am aware of the recent introduction of a similar tax in Hungary.

While any additional revenue would be welcome in the current circumstances, wider social and economic factors which may militate against the introduction of a further tax on text messages would also have to be taken into account. Mobile phone calls and text messages are already subject to VAT at 23%. An additional flat rate levy of the order referred to by the Deputy on text messages could significantly increase the overall rate of taxation on mobile phone accounts, particularly given that the average monthly spend per user is of the order of €35.

Brendan Griffin (Kerry South, Fine Gael)
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To ask the Minister for Finance the reason a windfall winnings tax, such as the taxes in place in many other countries and recently adopted by Spain, was not adopted in Budget 2013; and if he will make a statement on the matter. [57547/12]

Michael Noonan (Limerick City, Fine Gael)
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The receipt by a person of any sum bona fide by way of windfall winnings from betting or from any licensed lottery including the National Lottery is exempt from Income Tax, Capital Gains Tax and Capital Acquisitions Tax. A tax such as is proposed in the question could affect income for the National Lottery, the surplus from which may be used for national culture, including the Irish language; the arts, within the meaning of the Arts Act 1951; the health of the community; and for youth, welfare, national heritage and amenities. For reasons of equity, a windfall winnings tax such as is proposed in the question might have to be imposed on winnings from other lotteries, which could affect fundraising by charities and sports clubs. I have no plans to introduce a levy on windfall winnings at this time.