Róisín Shortall (Dublin North West, Social Democrats)
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216. To ask the Minister for Finance the expected revenue yield from an increase in excise on diesel of five cent per litre; the expected cost of using the diesel rebate scheme to offset such an increase for commercial transport;; and if he will make a statement on the matter. [32931/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the estimated yield from increasing the Excise on diesel by a range of amounts is shown on page 22 of Revenue’s Ready Reckoner which can be located at the following link: . The yield from a five cent per litre increase is estimated at €137m per annum.

Based on the volume of diesel on which claims were received in previous years, the cost of using the Diesel Rebate Scheme to offset a 5c increase for qualifying commercial transport is estimated to be in the region of €20 million.

Róisín Shortall (Dublin North West, Social Democrats)
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217. To ask the Minister for Finance the adjustment made for indexation of income tax bands and income tax rates when calculating the budgetary stance for Budget 2022; the estimated additional savings that could be made by not indexing income tax bands and income tax rates; and if he will make a statement on the matter. [32932/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Programme for Government, “Our Shared Future”, states that “from Budget 2022 onwards, in the event that incomes are again rising as the economy recovers, credits and bands will be index linked to earnings. This will be done to prevent an increase in the real burden of income tax, to prevent more low income workers being taken into the tax net because of no changes to the tax system and to ensure there is no increase in the number of people having to pay higher income tax and USC rates”. 

The Summer Economic Statement (SES), which will be published in the coming weeks, will include a high level update to the fiscal forecast published in April, taking into account the measures announced in the Economic Recovery Plan. The SES will also set-out a budgetary framework within which Budget 2022 can be delivered.

In general, consideration of any changes to the income tax rates and bands are undertaken within the annual Budgetary and Finance Bill process. As is normal, the Deputy will appreciate that I cannot comment on any possible changes in advance of Budget 2022, as any decisions in this regard will have to be considered within the overall Budgetary context, as well as the ongoing effects of Covid-19 on the economy.

That said, I will continue to assess the effects of the Covid-19 pandemic on the economy, and monitor the labour market and wage growth, with a view to ensuring that the broader tax system is as fair and equitable as possible.

For the information of the Deputy, page 9 of Revenue’s post-Budget 2021 Ready Reckoner, published in November 2020, includes the estimated cost of indexation at 1%, across various tax credits and bands, as well as USC band rates and exemption limits. This information is set out in the table below or available at the following link -