Tuesday, 11 July 2017
Department of Finance
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]
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.