Written answers

Tuesday, 21 March 2017

Photo of John BradyJohn Brady (Wicklow, Sinn Fein)
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173. To ask the Minister for Finance if he has explored the possibility of introducing a disability tax credit similar to the blind persons tax credit; if so, the estimated costs of setting up such a tax credit; and if he will make a statement on the matter. [14040/17]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The Deputy may be aware that there are currently a number of supports within the tax system available to disabled persons or to persons who provide care to disabled persons. These include the Blind Person's Tax Credit and the Incapacitated Child and Dependent Relative Tax Credits. Relief from tax is also available in relation to the costs incurred in employing persons to take care of incapacitated individuals and the cost of the incapacitated individual's medical expenses. Certain exemptions from Income Tax may also be available depending on the individual's circumstances, for example lump sum payments can be exempt from tax where paid by an employer because of injury or disability.

More detailed information on these types of measures is available from 'Revenue Leaflet IT12 General Guide to Taxation for People with Disabilities' which is available from the Revenue website at .

It is not possible to provide the Deputy with an estimated cost for a general disability tax credit, were such a credit to be introduced, as this would depend on the eligibility criteria chosen. However it is my view that the tax system, which has as its primary function the collection of tax revenues to fund public expenditure, is not the most appropriate route through which to provide such supports.  The tax system is limited in its ability to provide support to disabled individuals as tax measures can only benefit those whose incomes are high enough to pay tax and thus avail of any additional tax credit or relief.  Direct expenditure measures can have a wider reach than taxation measures, and it is for this reason that direct expenditure is the main route through which assistance and services are provided by the State to individuals affected by disability.

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