Written answers
Tuesday, 23 July 2024
Department of Finance
Tax Collection
Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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456.To ask the Minister for Finance to provide a full-year cost for increasing tax bands by 10%; and if he will make a statement on the matter. [33744/24]
Jack Chambers (Dublin West, Fianna Fail)
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The Deputy may wish to note that a Post-Budget 2024 Ready Reckoner is available on the Revenue website at the following link:
An update of the Ready Reckoner is due to issue in the coming weeks.
The Ready Reckoner shows a wide range of detailed information, including the estimated cost or yield to the Exchequer of widening the standard tax rate bands. While the Ready Reckoner does not show the specific costings requested by the Deputy, other changes can be estimated on a pro-rata basis with those displayed in the Reckoner.
Based on Revenue’s latest Ready Reckoner (Post-Budget 2024), it is estimated that the cost of increasing the standard rate tax bands by 10 per cent would be in the region of €905 million in 2024 and €1,040 million in a full year. The table shows how the bands would be increased as a result of Deputy’s proposal.
| Personal Circumstances | Standard Rate Bands 2024 | Standard Rate Bands 2025 |
|---|---|---|
| Single | 42,000 | 46,200 |
| Single person qualifying for the SPCCC | 46,000 | 50,200 |
| Married/civil partner – one earner | 51,000 | 55,200 |
| Married/civil partner – two earners (max) | 84,000 | 92,400 |
Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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457.To ask the Minister for Finance the full-year cost of reversing the 2023 carbon tax increase and postponing the 2024 increase; and if he will make a statement on the matter. [33745/24]
Jack Chambers (Dublin West, Fianna Fail)
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I am advised by Revenue that its Ready Reckoner for calculating the impact of potential changes in rates of taxation can be used to estimate the effect of changes to the carbon tax rate by extrapolating from the information on page 23. The Ready Reckoner is available on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx. An update of the Ready Reckoner is due to issue in the coming weeks.
These estimates assume no behavioural change as a result of the additional price increases.
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