Sir, – I find it remarkable that there was little or no mention of the pension levy when Budget 2019 was being discussed, particularly relating to the decision to increase the tourism VAT rate from 9 per cent to 13.5 per cent. If I recall correctly, one of the reasons given for imposing the unprecedented pension levy in 2011 was to help fund the jobs initiative, including introducing a 9 per cent VAT rate for the tourism sector. Now that the objectives of that plan appear to have been achieved, one would expect that the pension levy would gradually be reversed, similar to what is happening with other “recovery” measures taken at the time.
At a time when the Government and the pensions industry are encouraging employees to take out private pensions, it is concerning that the issue of the pension levy and possible future levies has not been raised either by politicians or the pension providers, with the latter regularly claiming to have the interests of their clients at heart.
It should be remembered that the levy applied to the capital value of relevant pensions funds at the time, thereby reducing permanently any possible future income that might accrue on such levied amounts. – Yours, etc,
MP MONAGHAN,
:fill(white):background_color(white)/static.themebuilder.aws.arc.pub/irishtimes/1647534191476.png)
Foxrock,
Dublin 18.