Pension fund levy raked in €68m more than expected – McGrath
Published on: 05 February 2015
New figures provided to Fianna Fáil Finance spokesperson Michael McGrath indicate that the levy on private pension funds took in €743m in 2014, €68m more than was anticipated at the start of the year. This brings the total raised from the levy in the last four years to €2,224m.
A levy of 0.15% will apply to private pension funds in 2015 despite the government originally saying the levy would cease at the end of 2014.
Deputy McGrath commented: “The pension fund levy was unfair from the very beginning as it represented double taxation on people’s pension savings which are already fully taxed when they are drawn down as income. One of the most galling aspects of the levy is that the government is taking money from pension schemes already under the water without any regard for the impact on the scheme members relying on that money for their retirement.
“The impact of the levy is clear: pension scheme members will enjoy less pension benefits directly as a result of the levy. The government has calculated that because people don’t have access to their pension savings now, they are largely oblivious to this tax. It has been the most daring financial smash and grab by any government in the history of the State.
“This government has effectively waged a war against people saving for their future. DIRT tax has been increased from 27% to 41% with an additional 4% PRSI applied to anyone with unearned income above €3,174 per annum. While the Tánaiste talks about encouraging people to save more for their retirement, the reality is real long term damage has been done to pension savings by the actions if this government. It reveals an entirely dysfunctional approach to policy formulation on its part.”
QUESTION NO: 53
DÁIL QUESTION addressed to the Minister for Finance (Deputy Michael Noonan) by Deputy Michael McGrath or WRITTEN ANSWER on 04/02/2015
To ask the Minister for Finance the final yield from the 0.75% pension fund levy in 2014; the way this compared to the projected yield at budget time; and if he will make a statement on the matter.
REPLY.
I am informed by the Revenue Commissioners that final receipts in 2014 from the Stamp Duty levy on pension fund assets, introduced in the Finance (No.2) Act 2011, are €743 million. The forecast yield for 2014 was €675 million.
QUESTION NO: 102
DÁIL QUESTION addressed to the Minister for Finance (Deputy Michael Noonan) by Deputy Michael McGrath for WRITTEN ANSWER on 17/07/2014
To ask the Minister for Finance if he will set out in tabular form the yield in each year since 2011 from the pension fund levy; the yield to date in 2014; and if he will make a statement on the matter.
REPLY.
I am informed by the Revenue Commissioners that receipts to date from the 0.6% Stamp Duty levy on pension fund assets, introduced in the Finance (No. 2) Act 2011, are as follows:
Year |
Yield (€ million) |
2011 |
463 |
2012 |
483 |
2013 |
535 |