Written answers
Tuesday, 29 July 2025
Department of Finance
Tax Data
Aidan Farrelly (Kildare North, Social Democrats)
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665. To ask the Minister for Finance further to Parliamentary Question Nos. 314 and 315 of 24 June 2025, if he will provide revised answers to those questions in the same manner as he did for Parliamentary Question No. 169 of 6 September 2019 (details supplied), which indicates that such a minimum effective tax rate does exist within the Irish personal income tax system, or did within the past ten years. [41728/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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In questions 314 and 315 of 24 June last, the deputy asked for:
- “the minimum effective tax rate on individual earnings for each of the past ten years; and the level of earnings at which that minimum effective tax rate applied in each of those ten years, in tabular form” and
- “the estimated first- and full-year yield from each percentage point increase in the minimum effective tax rate on individual earnings in 2026; and the estimated the first- and full-year yield from each €10,000 reduction in the level of earnings at which that minimum effective tax rate applies.”
“... the structure of the Irish personal income tax system does not provide for a minimum effective tax rate and so it is not possible to perform the analysis requested.”
In question 169 of 6 September 2019, Deputy Shortall asked for an estimate of the first and full year yield from each percentage point increase in the minimum effective tax rate of persons earning more than €400,000 per annum.
In response, I replied by reference to the average effective tax rate as follows:
- “I am advised by Revenue that a 1% increase in the average effective rate of income tax on taxpayer units with gross incomes in excess of €400,000 would raise an estimated €37m and €49m on a first and full year basis respectively.
The figures in this reply were arrived at by:
- calculating the effective rate (tax/gross income) for every taxpayer unit in question and then increasing that rate by 1% for each taxpayer unit,
- applying that new rate to their gross income to calculate a new liability for each unit separately,
- deducting their liability to get the additional yield, and
- aggregating the additional yields.
I am further advised by Revenue that it is not practicable to estimate the first- and full-year yield from each €10,000 reduction in the level of earnings at which that minimum effective tax rate applies as there is no such minimum.
In addition, the deputy might note that as the number of taxpayers by income range is not evenly distributed, it would not, in any case, be practicable, for Revenue to identify a flat yield per each €10,000 decrease in earnings.
Claire Kerrane (Roscommon-Galway, Sinn Fein)
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668. To ask the Minister for Finance the financial supports available for the cost of running a car including motor tax for families where there is a member of the family with additional needs; and if he will make a statement on the matter. [41871/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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My Department has oversight of the Disabled Drivers & Disabled Passengers Scheme (DDS) only and does not have responsibility for disability policy.
The DDS provides relief from VRT and VAT on an adapted car, as well as an exemption from motor tax and an annual fuel grant. The Scheme is open to severely and permanently disabled persons as defined, as a driver or as a passenger and also to certain charitable organisations.
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