Written answers
Thursday, 20 September 2018
Department of Finance
Summer Economic Statement
Róisín Shortall (Dublin North West, Social Democrats)
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52. To ask the Minister for Finance if the cost of the indexation of income tax bands and income tax rates has been factored into the discretionary measures amount of €0.8 billion as set out in the summer economic statement; and if the cost of so indexing would form part of the €0.8 billion figure. [38114/18]
Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware, the Programme for Partnership Government 2016, indicates that the income tax system will not be indexed.
The estimated Exchequer yield from non-indexation of the income tax system would be in the region of €0.6 billion on a full year basis. As this is a revenue generating measure (discretionary revenue measure) it increases the amount by which government expenditure can increase under the expenditure benchmark rule.
This is shown in table 3 of the Summer Economic Statement 2018 (h. discretionary revenue raising measures).
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