Written Answers. - Cost of Changing Tax Bands.

Wednesday, 26 January 1994

Dáil Éireann Debate
Vol. 437 No. 6

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  165.  Mr. Cox  Information on Pat Cox  Zoom on Pat Cox   asked the Minister for Finance  Information on Bertie Ahern  Zoom on Bertie Ahern   the cost to the Exchequer from 6 April 1994 to 31 December 1994, and in a full year, in gross and net terms for each £100 change in the standard and higher bands and allowances for individual income tax payers.

Minister for Finance (Mr. B. Ahern): Information on Bertie Ahern  Zoom on Bertie Ahern  The only relevant information available as to cost is in relation to the direct cost to the Exchequer in income tax foregone if the changes referred to in the question were enacted for the income tax year 1994/95. The estimated costs of increasing the main personal allowances and the standard tax rate band by £100 are set out in the following table.

Increase of £100 in each of: Estimated 1994 Cost Estimated Full Year Cost
£m £m
Standard band 7 12
Personal allowances, excluding the PAYE & PRSI allowances 26 43
Personal allowances, including the PAYE & PRSI allowances 58 95

The personal allowances included in the estimates of cost are the married, single and widowed allowances together with the associated one-parent family allowance. It is assumed that the increase in the single allowance must be combined with double that increase in the allowance for married persons assessed to tax on the aggregate basis.

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