Michael McGrath (Cork South Central, Fianna Fail)
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53. To ask the Minister for Finance the background to the 3% stamp duty that applies to all non-life insurance policies; the amount that has been collected to date in respect of the stamp duty; the anticipated yield in 2016; how this money is spent; if he will ring-fence the funding for flood-related measures; and if he will make a statement on the matter. [2424/16]

Michael Noonan (Limerick City, Fine Gael)
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Section 125 of the Stamp Duties Consolidation Act 1999 provides for a levy of 3% on the gross amount received by an insurer in the form of premiums paid in respect of non-life policies covering risks which are located in the State.  This levy applies to most non-life insurance premiums with the exception of re-insurance, voluntary health insurance, marine, aviation and transit insurance, export credit insurance and certain dental insurance contracts. 

The levy was originally introduced in 1982 at a rate of 1% of chargeable premiums. The rate was increased to 2% in the Finance Act 1993 and to the current rate of 3% in Finance Act 2009. The proceeds of the levy on non-life insurance form a part of general stamp duty receipts and are paid into the Central Fund along with other tax receipts.

I am advised by the Revenue Commissioners that the available data on amounts collected to date in respect of the stamp duty levy on non-life insurance policies is set out in the following table.

I am further advised that the anticipated yield in 2016 is in the region of €116.05 million.

I am generally not in favour of the hypothecation of taxes as it reduces the flexibility of the Government to prioritise and allocate funds as necessary at a particular time.