Seán Kenny (Dublin North East, Labour)
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125. To ask the Minister for Finance to forecast the amount of revenue that would be generated if a 5% tax rate was applied on all lotto winnings in excess of €750,000; and if he will make a statement on the matter. [1384/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the National Lottery that the total value of prizes over €750,000 won by players in 2014 amounted to €184.8m. This includes euromillions prizes of €101.7m. Based on 2014 figures, assuming the tax only applies to the excess winnings over €750,000, a tax of 5% on National Lottery winnings over €750,000 would yield €8,313,828.

The introduction of such a tax could have a significant detrimental impact on sales of National Lottery games and on the profits of Premier Lotteries Ireland as licensee. The introduction of such a tax was not referred to in the Licence competition and PLI bid for the licence on that basis.

Section 41 of the National Lottery Act 2013 provides that moneys paid into the Central Fund pursuant to section 44 shall be applied for the purposes of such one or more of the following, and in such amounts, as the Government may determine from time to time:

(a) sport and recreation;

(b) national culture and heritage (including the Irish language);

(c) the arts (within the meaning of the Arts Act 2003);

(d) health of the community;

(e) youth, welfare and amenities;

(f) natural environment;

(g) such other objectives (if any) as the Government may determine from time to time.

A taxation on winnings could be expected to have a behavioural effect on participation and reduce the surplus available for these purposes. National Lottery winnings are currently exempted from Income Tax, Capital Gains Tax and Capital Acquisitions Tax.  I do not propose at this time to introduce a tax such as is suggested by the Deputy.