Written answers
Tuesday, 30 June 2015
Department of Finance
Tax Collection Forecasts
Peadar Tóibín (Meath West, Sinn Fein)
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247. To ask the Minister for Finance the revenue that would be raised from an increase in vehicle registration tax rates across all bands by 30%. [26035/15]
Michael Noonan (Limerick City, Fine Gael)
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The new bands which would arise from a global 30% increase in rates of VRT are outlined as follows:
| Band | Current Rate | Proposed Rate |
|---|---|---|
| A1 | 14% | 18.2% |
| A2 | 15% | 19.5% |
| A3 | 16% | 20.8% |
| A4 | 17% | 22.1% |
| A5 | 18% | 23.4% |
| A6 | 19% | 24.7% |
| A7 | 23% | 29.9% |
| A8 | 27% | 35.1% |
| A9 | 30% | 39.0% |
| A10 | 34% | 44.2% |
| A11 | 36% | 46.8% |
The following table outline the increase in revenue that would arise from introducing the new proposed rates of VRT for a given level of new and used private motor car sales:
| New car reg | 100,000 | 110,000 | 120,000 | 130,000 |
|---|---|---|---|---|
| Yield | €161m | €178m | €195m | €212m |
| Used car reg | 35,000 | 40,000 | 45,000 | 50,000 |
| Yield | €37m | €42m | €47m | €53m |
| Total | €198m | €220m | €242m | €265m |
I would note that a VRT increase of this scale would lead to a reduction in the demand for private motor cars.
Peadar Tóibín (Meath West, Sinn Fein)
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248. To ask the Minister for Finance the revenue that would be generated from reducing the entry-level adjusted income threshold to €100,000 and full restriction level to €200,000, with an effective tax rate of 38%. [26036/15]
Michael Noonan (Limerick City, Fine Gael)
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I assume that the Deputy is referring to the restriction on the use of certain tax reliefs and exemptions by high income individuals. I am informed by the Revenue Commissioners that data to provide a definitive estimate of the yield from the measures outlined by the Deputy are not readily available. However, based on personal income tax returns filed for the year 2013, the latest year for which data is available, it is tentatively estimated that reducing the entry level adjusted income threshold to €100,000 and full restriction level to €200,000, with an effective tax rate of 38%, would generate an additional yield in the order of €70 million.
It should be noted that this estimate takes no account of any changes in taxpayer behaviour which might arise from the introduction of this change.
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