Written answers
Thursday, 6 July 2023
Department of Finance
Tax Credits
Richard Bruton (Dublin Bay North, Fine Gael)
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193. To ask the Minister for Finance the number of people who have benefitted from the increase in the home carers tax credit in Budget 2023. [33344/23]
Michael McGrath (Cork South Central, Fianna Fail)
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I am advised by Revenue that an estimated 67,000 taxpayer units will benefit in 2023 from the Budget 2023 measure to increase to the Home Carer Tax Credit from €1,600 to €1,700.
Richard Bruton (Dublin Bay North, Fine Gael)
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194. To ask the Minister for Finance the number of people who have benefitted from the earned income tax credit since its introduction, in tabular form. [33345/23]
Michael McGrath (Cork South Central, Fianna Fail)
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I am informed by Revenue that the number of taxpayer units claiming the Earned Income Tax Credit and the Exchequer cost for the years 2016 – 2020, the latest year for which data are readily available, are as follows:
| Year | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|
| No. of Taxpayer Units | 208,100 | 241,700 | 227,900 | 217,400 | 191,700 |
| Cost (€m) | 307.7 | 318.5 | 261.2 | 209.7 | 111.2 |
Further information on the cost and number of taxpayer units availing of tax expenditures can be found by consulting Revenue's 'Costs of tax expenditures' publication available on the Revenue website. www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx.
Richard Bruton (Dublin Bay North, Fine Gael)
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195. To ask the Minister for Finance when the age tax credit of €245 was last increased; the percentage increase in average earnings since that last increase; and if he will list the age credit as an element of the tax code which should be reviewed as preparation for the Budget 2024 commencement. [33425/23]
Michael McGrath (Cork South Central, Fianna Fail)
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The age tax credit was last increased in Budget 2008 from €275 to €325 for single persons and from €550 to €650 for married couples or civil partnership. As part of the suite of measures to deliver fiscal consolidation in Budget 2011, the age tax credit was reduced from €325 to €245 for single persons and from €650 to €490 for married couples or civil partnerships, and it has remained at this value since then.
Based on CSO data, average nominal hourly earnings (seasonally adjusted) have increased by 29% since 2008 and by 27% since 2011, to Q1 2023 (the latest point for which data is available). Further information can be found at (Table EHQ03)
I would note that the Commission on Taxation and Welfare recently reviewed the tax system in the round. The Commission recommended that age should be removed as a factor for determining the charge to income tax and USC, as it breaches the principle of horizontal equity and the concept of inter-generational equity. Further information is available at the following link: www.gov.ie/en/publication/7fbeb-report-of-the-commission/.
My Department is currently undertaking a review of the personal tax system, which will take account of the Commission on Taxation and Welfare recommendations and other personal tax matters.
Finally, with regard to the possibility of changes to the age tax credit in Budget 2024, the Deputy will also appreciate it is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters that might be the subject of Budget decisions.
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