## Written answers

### Tuesday, 11 July 2017

#### Department of Finance

##### Tax Code

**Pearse Doherty** (Donegal, Sinn Fein)

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*121.* To ask the Minister for Finance the estimated additional revenue that would be raised by increasing the bank levy by ten percentage points and by 10%; and if he will make a statement on the matter. **[32106/17]**

**Paschal Donohoe** (Dublin Central, Fine Gael)

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In Budget 2016, the Minister for Finance committed to extending the bank levy (a form of stamp duty paid by financial institutions) until 2021, subject to a review of the calculation methodology. This took place during 2016, including a public consultation to ascertain the views of stakeholders. Following on from this, it was decided to retain the existing DIRT-based calculation methodology, but to update the base year and corresponding levy rate, in order to protect the €150 million annual yield. Minister Noonan committed to the introduction of a rolling two-year series of base years which will introduce a new base year of 2017 for calculating the levy in 2019 and 2020, and a new base year of 2019 for calculating the levy in 2021. The levy rate may require updating when the base year changes to protect the €150 million annual yield.

The current rate is 59% of the amount paid in DIRT by accounts within each institution in 2015.

Increasing the current rate by 10 percentage points would give a rate of 69%. If everything else was held equal, a rate of 69% would give an approximate yield of €175 million.

Increasing the current rate by 10% would give a rate of 64.9%. If everything else was held equal, a rate of 64.9% would give an approximate yield of €165 million.

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