Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, with effect from 1 January 2009, relief in respect of qualifying health expenses, with the exception of relief in respect of nursing home expenditure, has been granted at the standard rate of tax. Prior to that date, the relief was available at the taxpayer's marginal rate. The rationale for standardising health expenses relief was to widen the tax base and bring the rate at which relief was granted into line with the majority of tax expenditures. In addition, the standard rating of the measure has made the tax system fairer in that all beneficiaries may receive tax relief at the same rate, currently 20%.

In my view, the availability of tax relief at the standard rate of income tax for health expenses, including qualifying dental expenses, is the most appropriate use of limited fiscal resources. As such, I have no plans to change the position at this time.

In relation to the Deputy’s suggestion to reinstate a tax credit for refuse collection, this measure was abolished in with effect from 2011, in line with a recommendation of the 2009 Commission on Taxation. Recommendation 11.22 of that Commission's report stated that: “The polluter pays principle should continue to underpin waste charges to ensure that all consumers pay for their own waste.” The Commission considered that there was no sound rationale for tax relief on service charges and therefore recommended that the relief be discontinued.

There are no current plans to reinstate this credit.