Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

149. To ask the Minister for Finance the estimated additional revenue that would be raised by increasing the bank levy by 10 percentage points and by 10%, respectively; and if he will make a statement on the matter. [21175/18]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

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.