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Home > Dail Eireann debate. Written answers 82 & 83 - Excise duties yield & Excise duties collection [31255/16 & 31257/16].

[Oireachtas] Dail Eireann debate. Written answers 82 & 83 - Excise duties yield & Excise duties collection [31255/16 & 31257/16]. (20 Oct 2016)

URL: https://www.oireachtas.ie/en/debates/question/2016...


Excise duties yield

82. Deputy Róisín Shortall asked the Minister for Finance if he will provide an analysis of the expected yield of excise duty for 2017 by sub-group, that is, VRT, tobacco, alcohol and so on; the percentage increase over the expected 2016 outcome; and if he will publish the underlying assumptions used in calculating the figures published in table 9, page c.24 of the economic and fiscal outlook published on budget day. [31255/16]

 

Minister for Finance (Deputy Michael Noonan): I am informed by Revenue that the expected yield from Excise duty in 2017, by sub group, is provided in the following table. These values are based on the Excise forecast as contained in Budget 2017.  

 

Sub group

Expected Yield 2017 (€m)

Percentage increase over the expected 2016 outcome (%)

VRT

810

2%

Tobacco

1,044

6%

Alcohol

1,246

5%

Mineral Oil Tax + Carbon

2,810

7%

Other Excise

75

2%

The allocation of Excise duties across the different subgroups may be subject to revision. As a significant proportion of receipts are yet to be collected in 2016, the allocation of the Excise forecast across the subgroups for next year may require revision. The aggregated excise forecast is prepared using a number of macro-economic drivers which are applied to the excise revenue base to assist in projecting excise receipts.

  

Excise duties collection

83. Deputy Róisín Shortall asked the Minister for Finance the likely loss of excise duties and VAT in 2017 for scenarios (details supplied) arising from the current and ongoing weakness in sterling and the methods used to calculate the response to the scenarios. [31257/16]

 

Minister for Finance (Deputy Michael Noonan):  I am informed by Revenue that the estimated losses of Excise duties and VAT for the scenarios supplied are shown in the following table. These estimates reflect reductions for alcohol and tobacco but do not include the vehicle element outlined by the Deputy. I am advised by Revenue that given the potential variation in reaction of consumers in response to a displacement of car purchases, it is not possible to reliably predict a cost for this element of the scenario.

 

 

Excise

VAT

Total

 

Loss

Loss

 

 

€m

€m

€m

Scenario A

315

201

516

Scenario B

As per Scenario A

 

 

Scenario C

352

230

582

 In estimating the above scenarios, it is assumed that the decline in sales of alcohol and tobacco in the Republic is not replaced by any other purchases, resulting in a complete loss of both VAT and Excise duties to the Exchequer on those sales.  These estimates are based on the Excise forecast in Budget 2017.  As a significant proportion of receipts are yet to be collected in 2016, the allocation of this forecast across the different commodity types may be subject to revision.

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