The Finance Bill, which provides for some of the changes to the TBESS, passed in the Seanad this evening so will be signed into law shortly. As the Deputies will know, the reduction in the energy cost threshold for entry to the scheme from 50% to 30% will be backdated to September 2022. Therefore, businesses that did not qualify all along because they did not meet that 50% test, if they meet the new 30% test, will receive the payment and it will be backdated to last autumn. The increase in the payment of the eligib…

As Deputy Boyd Barrett will be aware, it is long-standing practice of the Minister for Finance not to comment, certainly in any detail, in advance of the budget on taxation matters that might be the subject of budget decisions. The Government is acutely aware of the difficulties in the housing market and the challenges they present for many people and families at the moment. The need to address vacancy and to ensure all viable housing stock is being used is a priority for the Government. In Housing for All, the Gov…

The tax for which I have specific policy responsibility is the vacant homes tax, which has only just come into being. It has yet to be paid by anyone. We are in the first chargeable period. Returns will be made and the charge will be levied. The Revenue Commissioners will provide information to me regarding the operation of that tax and I will come to a view as to whether we need to change the nature of that tax. I would make the point that it is for habitable properties only. The issue of dereliction is related bu…

When we get the full data and having looked at the legitimate exemptions that are provided for in law in terms of the vacant homes tax, the number of people who are directly impacted will not be as high as some are suggesting. I do not think the yield will be as high as some people might think either because of the exemptions that are in place, and which need to be there. That is just that whole area of habitable properties. When I look at the derelict sites issue, however, I see that the levies collected in 2021 c…

I propose to take Questions Nos. 68 and 208 together. Since the UK left the EU Single Market and customs union, from 1 January 2021, the movement of goods from Great Britain into the EU is an importation from a third country and, in accordance with the terms of the withdrawal agreement, such goods must be declared to customs and are liable to customs duty, if applicable, and VAT at import. However, the EU-UK Trade and Cooperation Agreement eliminated tariff duties for trade between the EU and Great Britain where th…

Since 1 May 2023, the UK Government has introduced a new scheme known as the second-hand motor vehicle payment scheme. The new scheme allows car dealers who are VAT registered in Northern Ireland and other member states to reclaim the VAT element of the vehicle cost if the vehicle is purchased in Great Britain and removed or exported from there by the purchaser or by the Great Britain dealer. This means that Irish car dealers will now be in the same position as Northern Irish car dealers when purchasing a qualifyin…

As I said in the initial reply, the new scheme that has been produced by the UK Government is very recent. It only came in on 1 May. The Revenue Commissioners are currently examining the second-hand motor vehicle payment scheme. They are considering the impact and they will publish updated guidance shortly. I am not currently considering any particular change to the application of VRT but in light of the introduction of the new scheme in the UK, I will discuss the matter with Revenue to see what we might need to co…

I thank the Deputy. It has been a messy period for the motor sector and its trade with the North and Great Britain because of Brexit. When one considers what has transpired since Brexit, including the unilateral changes that were made in January 2021 and the fact that Revenue had to update its guidance in response to the withdrawal agreement, the Northern Ireland protocol and a new scheme from the UK that was introduced last week, there have been too many changes and we need a period of certainty. I will engage wit…

Notwithstanding good progress in reducing our shareholdings in the banking system and returning funds to the Exchequer, the State remains a majority shareholder in AIB, with a 53% stake, and in Permanent TSB, with a stake of approximately 62%. It continues to be this Government’s belief that banking in the main is an activity that should be provided by the private sector and that taxpayer funds which were used to rescue the banks should be recovered and used for the benefit of the citizens of the State. The State r…

We must have a banking system that provides services to customers. The State had to rescue the banks by investing an enormous amount of money. We are recouping much of that money but still have a journey to go. All of that work and the services provided by the banking sector, which supports thousands of staff in Ireland, is complemented by the work of the credit union movement. Credit unions are community-focused and their volunteer ethos is unique. The Government is a strong supporter of the credit union movement.

The truth is that the sector is now looking at and embracing enormous opportunity. As bank branches are closing around the country, credit unions are present and embedded in communities. We are now providing the policy and legislative framework to enable them to grow and prosper into the future. We will continue with that work.

In accordance with Standing Order 56, I wish to correct the record of the House concerning a response I gave on 18 April in the course of the Dáil debate on the Financial Resolution to apply a 0% rate of VAT to the supply and installation of solar panels from 1 May 2023. Deputy O'Donoghue sought to clarify if the proposed measure was only for supply and installation of solar panels or if the 0% rate would also apply to the supply of solar panels without installation. Based on the indications I had at the time, I st…

I wish to advise the Deputy that there are currently 6 staff from my Department working with the European Union in Brussels, in addition to 2 Central Bank of Ireland staff who are currently seconded to the Department of Finance working with the European Union. 4 staff are based in the Permanent Representation of Ireland to the European Union (Perm Rep), whose roles and position are as follows: Counsellor - Principal Officer (PO) Fiscal Attaché - Assistant Principal (AP) Budget Attaché - Assistant Principal (AP) Fin…

I propose to take Questions Nos. 351, 352, 353, 354, 355 and 356 together. The Debt Warehousing scheme allows for the deferral of the payment of VAT, PAYE (Employer) and certain self-assessed income tax liabilities, including TWSS and EWSS overpayments. It provided a vital liquidity support to businesses during the Covid pandemic and continues to support businesses as they recover from the impacts of the pandemic and the current energy crisis. The scheme was automatically available to businesses and individuals tha…

I wish to highlight, as Minister for Finance, I am precluded from intervening in commercial and operational decisions in any particular bank, even one in which the State has a shareholding. Decisions in this regard, are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis. This independence is protected by a Relationship Framework which is a legally binding document that cannot be changed unilaterally. This framework, which is publicly available,…

I assume that the Deputy’s question relates specifically to Income Tax, as opposed to Universal Social Charge. On that basis, I am advised by Revenue that the estimated first and full year yield to the Exchequer from the introduction of a third rate of income tax of 45 per cent applicable to taxable income in excess of €400,000 is €160 million and €220 million respectively.

I am advised by Revenue that the estimated additional full-year revenue generated from a 50% Capital Gains Tax (CGT) rate applying to the taxable gains of individuals with incomes of more than €375,000 would be in excess of €103 million. This full-year estimate is based on 2020 data, the latest year for which fully analysed data are available. This estimate assumes no change in behaviour by individuals resulting from the increase in the tax rate.

The Temporary Business Energy Support Scheme (TBESS) was introduced in Finance Act 2022 to support qualifying businesses with increases in their electricity or natural gas costs arising from the invasion of Ukraine by Russia. The scheme provides support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 30 April 2023. However, subject to State aid approval and enactment of changes proposed in Finance Bill 2023, this period is to be extended to cover energy costs up t…

I am advised by Revenue that the total receipts collected from Tobacco Products Tax (TPT) in 2021, and prior years, are published on the Revenue website at the following link: www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/receipts-volume-and-price/excise-receipts-commodity.aspx The provisional TPT receipts for 2022 are €1,160.6 million.

The Help to Buy (HTB) scheme is designed to assist first-time buyers with the deposit required to purchase or self-build a new house or apartment to live in as their home. It is a condition of the scheme that the applicant is compliant with their tax obligations and has Tax Clearance. I am advised by Revenue that the HTB application concerned is currently pending as the Income Tax Return for 2022, which is one of the years selected on the HTB application, is outstanding for one of the applicants. In addition, the a…