Written answers
Tuesday, 14 June 2022
Department of Finance
Tax Data
Pearse Doherty (Donegal, Sinn Fein)
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402. To ask the Minister for Finance the estimated cost of indexing tax bands and tax credits (details supplied). [30389/22]
Paschal Donohoe (Dublin Central, Fine Gael)
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Based on Revenue’s latest Ready Reckoner (Post-Budget 2022) the estimated costs on a first and full year basis of the Deputy’s proposed request are set out in the tables below. In addition, the tables also display the nominal increase as a result of the proposed adjustments.
Table 1 – 1% increase in the standard rate tax bands and the main income tax credits
| Measure | Adjustment | First year cost | Full year cost |
|---|---|---|---|
| Single standard rate band* | An increase of €368 from €36,800 to €37,168 | €80m | €90m |
| Personal tax credits | · An increase of €17 from €1,700 to €1,717 (single person) · An increase of €34 from €3,400 to €3,434 (married persons or civil partners) | €40m | €45m |
| Employee tax credit | An increase of €17 from €1,700 to €1,717 | €30m | €35m |
| Earned income tax credit | An increase of €17 from 1,700 to €1,717 | €2m | €3m |
*the cost includes commensurate increases for persons who are married or in civil partnerships.
Table 2 – 2% increase in the standard rate tax bands and the main income tax credits
| Measure | Adjustment | First year cost | Full year cost |
|---|---|---|---|
| Single standard rate band* | An increase of €736 from €36,800 to €37,536 | €160m | €180m |
| Personal tax credits | · An increase of €34 from €1,700 to €1,734 (single person) · An increase of €68 from €3,400 to €3,468 (married persons or civil partners) | €80m | €90m |
| Employee tax credit | An increase of €34 from €1,700 to €1,734 | €60m | €70m |
| Earned income tax credit | An increase of €34 from 1,700 to €1,734 | €4m | €6m |
*the cost includes commensurate increases for persons who are married or in civil partnerships.
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