Pearse Doherty (Donegal, Sinn Fein)
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110. To ask the Minister for Finance the estimated cost of increasing the annual exemption limits for persons aged 65 years of age and over by €1,000 for a single persons and €2,000 for a couple; if further increases would be a straight line calculation; and if he will make a statement on the matter. [27499/18]

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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118. To ask the Minister for Finance his plans to increase the pension exemption limit for tax purposes from €36,000 in view of the fact that it has not been adjusted for the past four to five years; the estimated cost of an increase for each €1,000; and if he will make a statement on the matter. [27834/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 110 and 118 together.

I am informed by Revenue that the costs for increasing the annual exemption limits for persons aged 65 years and over can be found by consulting the Revenue Ready Reckoner, available at https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.

The cost requested is as follows;

Amounts other than those shown can be extrapolated using a straight line or pro-rata calculation.

The purpose of the exemption limit is to identify a certain income limit below which a taxpayer aged 65 or over is not required to pay income tax or to submit claims to Revenue for income tax reliefs.

This exemption limit does not equate to the amount of income which would be sheltered by the tax credits available to the individual or couple as both the exemption limit and the tax credits available can vary depending on the personal circumstances of the individual. For example:

- There are separate single and married exemption limits, and increases are also available for individuals with dependent children including incapacitated adult children.

- While all taxpayers have a personal tax credit, a PAYE credit is available only in respect of qualifying income and is limited for use against that type of income. Additional tax credits are also available, such as those for widows/widowers, for blind individuals, for those caring for incapacitated children or dependant relatives, and for health expenses incurred by the taxpayer.

In my view the current income exemption limits are the most appropriate use of limited resources. I am however conscious of the significant contribution made by taxpayers generally to the rebalancing of the public finances, and of the challenges that individuals continue to face notwithstanding the improving economic conditions.

For this reason Budget 2018, for the fourth year in succession, introduced reductions in the income tax and USC burden with a particular focus on low and middle income earners. It is my intention to continue to make progress on reducing the personal tax burden in future Budgets subject to having the necessary resources.