Pearse Doherty (Donegal, Sinn Fein)
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392.To ask the Minister for Finance the estimated revenue that would be raised in first and full-year terms in each of the years 2025, 2026, 2027, 2028 and 2029 by reducing the total earnings limit for employee pension contribution from €115,000 to €60,000, €70,000 and €80,000, in tabular form. [33158/24]

Pearse Doherty (Donegal, Sinn Fein)
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393.To ask the Minister for Finance the estimated revenue that would be raised in first and full-year terms in each of the years 2025, 2026, 2027, 2028 and 2029 respectively, by reducing the total earnings limit for employee pension contribution from €115,000 to €60,000 while increasing the age-related percentage limits to 40% across all age-brackets. [33159/24]

Pearse Doherty (Donegal, Sinn Fein)
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394.To ask the Minister for Finance the estimated revenue cost in first and full-year terms in each of the years 2025, 2026, 2027, 2028 and 2029 respectively, by increasing the age-related percentage limits for employee pension contributions to 40% across all age-brackets. [33160/24]

Jack Chambers (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 392, 393 and 394 together.

In relation to question 33158/24 I am advised by Revenue that the yields associated with reducing the total earnings limit for employee pension contributions from €115,000 to each of €60,000, €70,000 and €80,000 are an estimated €120m, €85m and €60m respectively.

In relation to question 33159/24, I am advised by Revenue that the yield associated with reducing the total earnings limit for employee pension contributions from €115,000 to €60,000, combined with increasing the age-related percentage limits to 40% across all age-brackets, is an estimated €65m.

In relation to question 33160/24, I am advised by Revenue that the cost associated with increasing the age-related percentage limits to 40% across all age-brackets, is an estimated €30m.

I am advised by Revenue that data in relation to questions 33159/24 and 33160/24 should be treated as particularly tentative, as the increase of the age-related percentage limits to 40% across all age-brackets is based on the lifting of the current restrictions of pension contributions in excess of the age-related limits. The costing does not reflect the potential increase in pension contributions as a result of the behavioural response resulting from this policy changes, which may be significant. It is not possible to estimate the behavioural response associated with such a change.

I am further advised that Revenue cannot provide estimates for later years due to the unknown nature of the future tax base and future economic behaviour.

It is important to be aware that estimates of tax policy changes for Income Tax are provided on the basis of the current Budget year (2024) rather than the next Budget year (2025). The Budget year costings for 2025 are prepared for the party costings service and are used to feed into costings requested by the Department of Finance in advance of the Budget. The Revenue Pre-Budget Ready Reckoner (published end August) will also be on the basis of Budget year 2025.