Written Answers Nos. 252-271
252. Deputy Fergus O'Dowd asked the Minister for Finance if a reply will issue to correspondence (details supplied) regarding the filing of income tax returns; and if he will make a statement on the matter. [23347/20]
View answerRevenue has assured me that it is very aware of the pressures faced by taxpayers and tax agents in meeting tax filing deadlines this year and is closely monitoring the position regarding the upcoming Income Tax pay and file deadline.
Revenue has advised me that it will confirm this year’s Income Tax filing deadline shortly.
253. Deputy Dara Calleary asked the Minister for Finance his views on insurance companies that are unwilling to compensate policy holders that have paid for specific business interruption cover in the event of an outbreak of infectious disease; the actions he has taken in respect of same; and if he will make a statement on the matter. [23364/20]
View answerI am aware of the concerns expressed about how the insurance industry is responding to the needs of its business policyholders in these difficult times, including honouring business interruption claims. As such, I have considerable sympathy for such policyholders. However, neither I, nor the Central Bank can direct or require that insurers cover claims, including those resulting from infectious diseases such as COVID-19, nor can we adjudicate on the validity of such claims.
That being said, this is an issue that Minister of State Fleming and I continue to follow closely. Whether a business can make a claim in relation to COVID-19 related loss of earnings will depend on the specifics of their policy. In cases where there is infectious disease cover, there may be other considerations which will influence the decision of an insurer to not pay a claim.
Accordingly, it is important therefore for businesses to engage directly with their insurer or broker on these matters, and where they believe an insurer has incorrectly rejected their claim, they should either consider referring the matter to the Financial Services Ombudsman (FSPO) for adjudication or where their claim is in excess of the FSPO €3 million limit they may wish to consider legal action. I understand that this is already happening in a number of cases.
Both my Department and I have had considerable engagement with the insurance industry on the issue of business interruption claims over the past number of months. From the outset I have made it very clear that as a general rule insurers should not attempt to reject claims on the basis of interpreting policies to their own advantage. They should engage with those impacted businesses honestly, fairly and professionally to honour those elements of the policies covered, in line with the Central Bank’s Consumer Protection Code. Furthermore, I have made it clear that the Government direction to close a business in the context of COVID 19 should be considered as such where a claim may be appropriate. I have also indicated to the insurance industry that adopting a “blanket” rejection of all business interruption claims, is doing the industry significant reputational damage and is not treating customers fairly. Most recently when Minister Fleming and I met with Insurance Ireland to discuss the Programme for Government’s ambitious insurance reform agenda, I continued to stress the need for an appropriate response from insurers.
Separately, the Central Bank’s Business Interruption Insurance Supervisory Framework sets out it’s expectations of insurance firms in handling COVID-19 related business interruption insurance claims. Where customers have an entitlement to claim under a business interruption insurance policy, the Bank expects that claims will be processed and paid promptly and fully. Significantly, where cover and related issues are disputed, the Bank expects firms to pay the reasonable costs of customer plaintiffs in agreed test case litigation. I welcome this move and I am aware that a number of test cases are due to be heard in the courts next month. The Central Bank is continuing to engage with the non-life insurance industry on these matters and will continue to closely monitor the situation to ensure that firms are meeting the expectations as previously set out.
The Deputy should be assured that Minister of State Fleming and I will continue to monitor the business interruption issue and will engage appropriately with the Central Bank on the matter. This issue is recognised in the Programme for Government’s extensive cross-Departmental insurance reform agenda, which amongst other things seeks to address consumer and business concerns on the cost and availability of insurance by building on the work of the Cost of Insurance Working Group.
254. Deputy John Brady asked the Minister for Finance if he plans to impose further increases in diesel levies; and if he will make a statement on the matter. [23386/20]
View answerAs the Deputy will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
255. Deputy Denis Naughten asked the Minister for Finance if the decision will be reviewed to cease the temporary wage subsidy scheme to public houses that remain closed in view of the fact that these employers are not in a position to top up the employment wage subsidy scheme; and if he will make a statement on the matter. [23398/20]
View answer280. Deputy Ged Nash asked the Minister for Finance the estimated cost to revenue of returning the new EWSS to the payment levels and thresholds that previously existed under the TWSS; if he will provide a comparison between returning to the previous TWSS rates and the current EWSS rates in tabular form; and if he will make a statement on the matter. [23744/20]
View answerI propose to take Questions Nos. 255 and 280 together.
Between March and August 2020, over 65,000 employers received a subsidy under the Temporary Wage Subsidy Scheme (TWSS) with payments worth over €2.8 billion paid out to a total of 663,100 workers. The average monthly cost of the TWSS was around €500m which would be the expected cost per month if the measure was to be retained beyond the end date of 31 August.
The Employment Wage Subsidy Scheme (EWSS) was legislated for in the recently enacted Financial Provisions (Covid-19) (No. 2) Act 2020, replacing the TWSS from 1 September 2020 until March 2021. It provides a flat-rate subsidy to qualifying employers, based on the number of qualifying employees on the payroll. This adaptation from the TWSS will allow employers to rely on the continuation of support over a longer period of 8 months while also ensuring such support is sustainable and affordable. The EWSS is an economy wide scheme and it cannot be tailored to meet individual sectors’ needs. For businesses experiencing financial difficulties, there are a number of options open to them apart from the EWSS, including State backed loans and grants. Measures include the Credit Guarantee Scheme, the SBCI Working Capital Scheme, Sustaining Enterprise Fund, and the Covid-19 Business Loans Scheme.
It is expected that the EWSS will support around 350,000 jobs into the beginning of 2021. On this basis, it is estimated that the EWSS will cost €2.25 billion (€1.35 billion in 2020 inclusive of seasonal workers and €0.9 billion in 2021). The scheme is demand led and a significant surge in claims may require a policy review and re-evaluation of the terms of the scheme. These cost predictions are therefore subject to review and for every additional 50,000 qualifying employments, the cost increases by €0.25 billion.
The tentative costs per month between EWSS and TWSS are set out in the table below but it is emphasised that the cost of the EWSS is a projection and subject to review. Further, in both cases, the costs are on the basis of the schemes as implemented in their totality and individual elements of the scheme (such as the rates and qualifying criteria) have not been disaggregated. It is not possible to provide a reliable estimate of the cost of applying TWSS rates of payment to the EWSS as currently configured.
|
EWSS |
TWSS |
|
|
Total Cost |
€2.25 billion (8 months) |
€2.8 billion (6 months) |
|
Monthly Cost |
~€300 million |
~€500 million |
Although many of the strictest public health restrictions on the economy have been eased it is recognised that economic outputs are unlikely to return to normal for many businesses for much of the rest of 2020 because of the continued need to observe some requirements such as social distancing. The Government is therefore committed to a wage subsidy scheme to maintain the link between the employee and employer insofar as is possible into 2021. The position in relation to the EWSS, as with the Temporary Wage Subsidy Scheme (TWSS), does not affect any legal obligations that the employer may have to their employee as regards any terms, conditions or entitlements of their employment, including pay, sick pay or pension schemes.
I am satisfied that the EWSS will allow employers to rely on the continuation of support over a longer period of 8 months while also ensuring such support is sustainable and affordable. The level of subsidy being granted under the EWSS is commensurate with the average payment per worker under the TWSS which had been reducing since the start of June and since 14 August was €283 across all recipients and €219 in the case of first-time recipients.
256. Deputy Patricia Ryan asked the Minister for Finance if the difficulties that householders living close to bodies of water have in getting home insurance cover will be addressed; and if he will make a statement on the matter. [23510/20]
View answerI am conscious of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses. Accordingly, this is one of the reasons the Government has been prioritising investment in flood defences over in recent years.
However, you should be aware that the provision of insurance is a commercial matter for insurance companies, which is based on a proper assessment of the risks they are willing to accept. Consequently, neither I in my role as Minister for Finance nor the Central Bank can interfere in the provision or pricing of insurance products. This position is reinforced by the EU framework for insurance (Solvency II Directive).
Having said that, it is important to remind the Deputy that current government policy in relation to increasing flood insurance coverage is focused on the development of a sustainable, planned and risk-based approach to managing flooding problems. To achieve this aim there is a focus on:
- prioritising spending on flood relief measures by the Office of Public Works (OPW) and relevant local authorities,
- implementation of flood relief management plans by the OPW to deliver flood relief schemes, and
- maintaining channels of communication between the OPW and the insurance industry, in order to reach a better understanding about the provision of flood cover in affected areas.
The above approach is complemented by a Memorandum of Understanding between the OPW and industry representatives Insurance Ireland. This provides for the exchange of data in relation to completed flood defence schemes, which should in-turn provide a basis for the increased provision of flood insurance in areas where works have been completed. In this regard, the Insurance Ireland/OPW working group, which the Department of Finance attends, meets on a quarterly basis to support the information flow and improve the understanding of issues between both parties.
I acknowledge that while there has been an overall increase in the provision of flood insurance between 2015 and 2019, many householders are still experiencing difficulties. This is particularly the case for households living in areas with demountable flood defences.
My Department is reviewing the challenges of property insurance and flooding and indeed this is one of the actions assigned to the Department of Finance under the Climate Action Plan. Over the last year my Department launched a public consultation on Climate Change and Insurance and subsequently met with interested parties. The key themes that arose from the consultation related to (i) the lack of data on flood insurance coverage and (ii) the challenges of obtaining flood cover in areas with demountable defences. My Department is now meeting with key stakeholders such as the Central Bank, the OPW, Irish Public Bodies and the State Claims Agency to further review the issues raised and assess a feasible way forward. This review is in progress and my Department will continue to provide updates on this workstream to the Climate Action Delivery Board.
Finally, the Deputy should be assured that Minister of State Fleming and I will continue to be active on insurance issues including flooding, and we are proactively engaging on all aspects of insurance reform. This is recognised in the Programme for Government’s extensive cross-Departmental insurance reform agenda, which amongst other things, seeks to address consumer and business concerns on the cost and availability of insurance by building upon the work of the Cost of Insurance Working Group.
257. Deputy Brendan Griffin asked the Minister for Finance his views on a matter (details supplied) regarding the stay and spend scheme; and if he will make a statement on the matter. [23545/20]
View answerThe Stay and Spend scheme provides tax relief by means of a tax credit at the rate of 20% on qualifying expenditure of up to €625 per person, or €1,250 for a jointly assessed couple, in respect of 2020 and 2021. The tax credit is worth a maximum of €125, or €250 for a jointly assessed couple.
The scheme is a tax-based measure administered by Revenue and is one of a number of initiatives introduced by the Government as part of the July Stimulus Package with the aim of supporting employment.
With regard to the details supplied by the Deputy, it should be noted that, while the normal position is that a tax credit can only benefit a person who has an income tax liability, special arrangements have been made to extend the potential benefit of the Stay and Spend Tax Credit as widely as possible so that, even where a person does not have an income tax liability, he or she may still benefit by virtue of having a USC liability.
In terms of those on lower incomes, the position is that a full-time minimum wage worker will be able to absorb fully the Stay and Spend Tax Credit in either 2020 or 2021. Indeed a person who earns 75% of the minimum wage in the year, for example a person working part-time for just over 29 hours per week on the minimum wage, will also be able to fully absorb the credit in either 2020 or 2021. In this case, the person will not have an income tax liability, but, by virtue of the fact that the tax credit may be set against a USC liability, the person will be able to fully benefit.
The credit will be off-set against the claimant’s income tax liability in the year of assessment, after other allowances, deductions or reliefs have been given to the claimant. If the credit available to a claimant is higher than their income tax liability in the year of assessment, any excess credit may be off-set against their liability to USC in that same year. This credit can be used to reduce a claimant’s liability to income tax and USC in the year of assessment to nil.
258. Deputy Brendan Griffin asked the Minister for Finance if the rate of VAT will be reduced on hospitality services to 5% to help struggling businesses to survive in the foreseeable future; if the full-year estimated adjustments as a result of such a measure in the current trading environment will be provided; and if he will make a statement on the matter. [23576/20]
View answerAs the Deputy will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
259. Deputy Brendan Griffin asked the Minister for Finance if the rate of excise applicable to alcohol sold for consumption on licensed premises will be reduced to help struggling businesses to survive in the foreseeable future; if the full-year estimated adjustments as a result of such a measure in the current trading environment will be provided; and if he will make a statement on the matter. [23577/20]
View answerAs the Deputy will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
260. Deputy Mairéad Farrell asked the Minister for Finance if there is a requirement for firms that have been afforded section 110 status under the Taxes Consolidation Act 1997 by the Revenue Commissioners to state in their financial statements that they are availing of this tax relief. [23601/20]
View answerThere are a number of conditions which a company must meet in order to be regarded as a qualifying company for the purposes of section 110 of the Taxes Consolidation Act 1997 (“TCA 1997”). One such conditions is that the company must notify Revenue of its intention to be a qualifying company by completing a Form S.110 no later than 8 weeks from the date the company commences its business as a qualifying company for the purposes of section 110 TCA 1997.
A qualifying company is also required to indicate on its annual corporation tax return that they are a qualifying company within the meaning of section 110 TCA 1997 and provide additional information in relation to the assets held by the company. Along with the filing of their annual corporation tax return, a qualifying company is required to file their annual financial statements with Revenue.
In addition to the Revenue reporting requirements, under section 18 of the Central Bank Act 1971, all qualifying companies are obliged to report quarterly data to the Central Bank. More information on this requirement is available at the following link: https://www.centralbank.ie/statistics/statistical-reporting-requirements/special-purpose-vehicles.
This is in addition to other reporting obligation which many such companies already have - where such vehicles are “Financial Vehicle Corporations” (securitisation vehicles), they are required to report quarterly data to the Central Bank under Regulation ECB/2013/40. More information on this requirement is available at the following link: https://www.centralbank.ie/statistics/statistical-reporting-requirements/financial-vehicle-corporations. This information is then reported to the European Central Bank. The European Central Bank statistics provide harmonised information on the securitisation market and can also be broken down by country. The country by country list can be accessed at the following link: https://www.ecb.europa.eu/stats/financial_corporations/list_of_financial_institutions/html/index.en.html.
There is no legislative requirement contained in the Tax Acts which requires a company to state in their financial statements that they are a qualifying company for the purposes of section 110 TCA 1997. However, where the qualifying company is an Irish registered company, it must prepare financial statements in accordance with the Companies Act 2014, which must give a true and fair view of the assets, liabilities and financial position of the company. This is generally taken to be the case where the financial statements are prepared under Irish or International accounting standards. Both such accounting standards require that a note to the financial statements explains the tax charge in the accounts. In addition, the Companies Act 2014, at paragraph 64 of Part IV of Schedule 3, requires that the financial statements of larger companies include certain particulars on the tax charge in the accounts. Given the material impact of being a qualifying company on the tax charge of the company, the tax note generally explicitly states that the company’s current tax is calculated in accordance with section 110 TCA 1997.
261. Deputy Steven Matthews asked the Minister for Finance if consideration has been given to entering further negotiations with the lending banks regarding a possible extension of mortgage breaks for those who continue to suffer significant drops in salary as a direct result of Covid-19. [23609/20]
View answerAs the Deputy is aware, on 18 March the Banking and Payments Federation of Ireland (BPFI) announced a co-ordinated approach by banks and other lenders to help their businesses and personal customers who were economically impacted by the Covid-19 crisis. These measures included flexible loan repayment arrangements, and included a loan payment break of up to three months which was subsequently extended for up to a six month period.
The financial circumstances of many of the borrowers which availed of a Covid-19 payment break have now normalised and they are in a position to return to making payments. In that regard, the BPFI has indicated that the broad options available to borrowers coming off a payment break will be to return to payments over the existing term of the loan, or to extend the term of the loan so as to make the monthly repayments more affordable for the borrower. It is important that lenders and borrowers coming off a payment break will engage so as to select the most appropriate new repayment arrangement in their individual case.
Unfortunately, at the end of a payment beak there will be some borrowers who will continue to experience financial difficulty. In these circumstances, it will be particularly important that engagement should take place as early as possible. I would, therefore, encourage any borrower who feels he or she may have difficulty in resuming payments after a Covid-19 payment break to contact their lender and if possible to do so before the payment break end date. Borrowers have a suite of regulatory protections and lenders have specific obligations, under the Central Bank consumer protection framework, to support and work with borrowers in arrears or in pre-arrears. In particular, lenders are obliged to engage and work with co-operating borrowers to identify an appropriate and sustainable solution having regard to the particular circumstances of a case and that lenders should use the full suite of restructuring solutions available to them.
I will continue to work with the Central Bank, as regulator, and the industry to seek to ensure that banks continue to work with and pro-actively assist their customers who will still be experiencing difficulty at the end of a Covid-19 payment break and to ensure that the Central Bank consumer protection framework will be fully available to mortgage borrowers that will still need support.
262. Deputy Darren O'Rourke asked the Minister for Finance the amount of VAT collected from residential electricity customers in each of the years 2015 to 2019; the VAT that was collected from all electricity customers in the same years; and if he will make a statement on the matter. [23633/20]
View answer263. Deputy Darren O'Rourke asked the Minister for Finance the amount of VAT collected from residential gas customers in each of the years 2015 to 2019; the VAT that was collected from all gas customers in the same years; and if he will make a statement on the matter. [23634/20]
View answerI propose to take Questions Nos. 262 and 263 together.
I am advised by Revenue that traders are not required to separately identify the VAT yield generated from the supply of specific services on their VAT returns and as such it is not possible to separately report the VAT collected from the sale of electricity or the sale of gas.
However, using information from a combination of Personal Consumption Expenditure reports as compiled by the Central Statistics Office and Ireland’s VAT Own Resources, an estimate of the VAT on residential electricity and residential gas for the available years of 2015 to 2018 is provided below.
|
Year |
Estimated VAT yield - Electricity |
Estimated VAT yield - Gas |
|
2015 |
€243m |
€68m |
|
2016 |
€228m |
€66m |
|
2017 |
€193m |
€60m |
|
2018 |
€206m |
€65m |
264. Deputy Darren O'Rourke asked the Minister for Finance the amount collected in carbon tax on residential gas customers in each of the years 2015 to 2019; and if he will make a statement on the matter. [23635/20]
View answerI am advised by Revenue that a breakdown of the Carbon Tax receipts by residential gas customers is not available as this information is not specified in tax returns. The total amount collected in Carbon Tax on natural gas for the years 2015 to 2019 is available on the Revenue website at the following link:
https://www.revenue.ie/en/corporate/documents/statistics/excise/net-receipts-by-commodity.pdf
266. Deputy Ged Nash asked the Minister for Finance the status of the take-up of the TLTRO III by Irish pillar banks individually and collectively; the way in which this compares with the current EU average; and if he will make a statement on the matter. [23730/20]
View answerAs the Deputy is aware, as Minister for Finance I have no role in the day to day commercial activities of any of the banks. Decisions in relation to liquidity management and funding are matters for the Board and management teams in each of the banks.
The Deputy will be further aware that the liquidity and funding position of both AIB and Bank of Ireland is very strong as reported in their recent H1 2020 Results. Both banks have significant excess liquidity and therefore I understand that their need to access ECB funding is limited relative to some banks elsewhere in Europe who make extensive use of ECB facilities such as TLTRO to fill gaps in their funding.
My officials have been provided with the following responses from AIB and Bank of Ireland:
AIB
“AIB noted at the time of its half year results, that TLTRO III is under consideration for September 2020 drawdown, indicating a participation amount of €4bn-€6bn.“
Bank of Ireland
“There have been no TLTRO III drawdowns by Bank of Ireland. The Group continues to have significant liquidity available with very strong liquidity buffers to support customer lending. However, we will continue to consider future TLTRO operations.”
267. Deputy Ged Nash asked the Minister for Finance the advice received by his officials regarding the revised help-to-buy scheme announced in the July stimulus package; the projected deadweight cost of the scheme; and if he will make a statement on the matter. [23731/20]
View answerI recently announced a temporary enhancement to the existing HTB scheme for the remainder of 2020 as part of the July Stimulus package. The legislation to give effect to this increase has been outlined in the Financial Provisions (Covid-19) (No.2) Act 2020 and was signed into law on 1 August 2020.
In summary, the legislation provides that where applicants
(I) enter into a contract for the purchase of a new house or apartment, or
(ii) make the first draw down of the mortgage in the case of a self-build property,
during the period from 23 July 2020 to 31 December 2020, they will be eligible for increased relief under the HTB scheme to the lesser of:
- €30,000 (increased from €20,000),
- 10 per cent (increased from 5 per cent) of either the purchase price of the new home or, in the case of self builds, the completion value of the property, or,
- the amount of Income Tax and DIRT paid in the four years prior to making the application.
All other conditions of the original HTB scheme remains the same.
The purpose of HTB is two-fold, firstly to assist first-time buyers with the deposit they need to buy or build a new home and secondly to stimulate the growth in supply of new homes. In assisting young people to take their first steps into home-ownership, the scheme supports a fundamental social policy objective.
I assume the Deputy is referring to the advice that I received from my officials in preparing the enhanced HTB measure for the Stimulus package. Such advice related to the intent of the enhancement, its operation and its impact for first-time buyers and its estimated cost.
It is not possible to provide a reliable cost estimate of any deadweight element that might arise in connection with the enhanced scheme. This is because the circumstances of potential beneficiaries are unknown. However, I would draw the Deputy's attention to a key feature of the scheme which is designed to minimise any deadweight effect, i.e. the minimum loan to value of 70% in order for purchases to be eligible for HTB - that requirement has not changed. In addition, as the as the Deputy may be aware, in 2018 I commissioned an independent Cost benefit Analysis (CBA) of the Help to Buy incentive. The report of the CBA was published on the day of Budget 2019. The analysis found a benefit-cost ratio of 1.28. indicating a moderate positive effect for the incentive.
The Report can be found at the following link.
www.budget.gov.ie/Budgets/2019/Documents/Tax%20Expenditures%20Report%20Budget%202019.pdf
268. Deputy Ged Nash asked the Minister for Finance the cost to Exchequer of removing stamp duty on credit cards; his views on removing stamp duty in view of safety concerns regarding the use of cash as a result of Covid-19; and if he will make a statement on the matter. [23732/20]
View answerI am advised by Revenue that based on 2020 tax forecasts, the estimated cost of removing Stamp Duty on credit cards would be in the region of €38 million. This does not include the cost of removing Stamp Duty on other payment cards, which would increase this cost by a further €17 million.
The €30 stamp duty on credit cards is generally collected by the card issuing financial institutions on 1 April each year for the preceding year, i.e. one year in arrears. The tax year for this stamp duty normally begins on 2 April each year.
As part of a package of measures I introduced in response to the early phase of the Covid 19 pandemic, I determined that for 2020, the stamp duty on credit cards, which is normally charged to accounts on 1 April each year, would not be collected until 1 July. It is however anticipated that the collection dates will revert to normal in 2021. The stamp duty collected on 1 July 2020 was in respect of the period 2 April 2019 to 1 April 2020. I did this to help mitigate the sudden and significant reduction in income that was being experienced by many at the time.
I am not aware of any evidence that the €30 annual stamp duty acts as a significant disincentive to the use or issuance of credit cards, particularly as it is not usage based, but is rather a flat charge that is levied each year, irrespective of whether a credit card is used or not in the 12 month period. I have no plans at this time to remove or amend that stamp duty.
269. Deputy Ged Nash asked the Minister for Finance the anticipated savings to the Exchequer in 2021, in tabular form, from the ending the employment and investment incentive, the key employee engagement programme, the special assignee relief programme and the foreign earnings deduction; and if he will make a statement on the matter. [23733/20]
View answer270. Deputy Ged Nash asked the Minister for Finance the anticipated savings to the Exchequer in 2021 from the ending rent-a-room relief; and if he will make a statement on the matter. [23734/20]
View answerI propose to take Questions Nos. 269 and 270 together.
The latest costs available for the Employment & Investment Incentive (EII), the Special Assignee Relief Programme (SARP), Foreign Earnings Deduction (FED) and Rent-A-Room Relief can be found in the Cost of Tax Expenditures report which is published on the Revenue website at link: https://www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.pdf.
A summary table can also be found below.
These costs can be assumed to be broadly indicative of the savings to the Exchequer if the reliefs were ended for a given year. However, this does not take account of changes in taxpayer behaviour or the secondary economic benefit provided by the reliefs.
Regarding the Key Employee Engagement Scheme (KEEP), I am advised by Revenue that 10 companies granted qualifying share options to 87 key employees during 2018 (the first year of the scheme). Generally, a key employee must hold the option for 12 months prior to exercise and, as such, 2019 was the earliest date that individuals could exercise their options to acquire shares in the qualifying companies. Returns for 2019 will not be filed with Revenue until later in 2020 so no information is available at this time. The Deputy may also wish to note that KEEP options may be exercised for up to 10 years from the date of grant and therefore it is not certain when the first exercises will occur.
|
Measure |
Cost |
|
SARP |
€28.1 million (2017 - the most recent year for which figures have been published) |
|
FED |
€5.4 million (2018) |
|
Rent-A-Room Relief |
€19.7 million (2018) |
|
KEEP |
- |
271. Deputy Ged Nash asked the Minister for Finance the cost of fossil fuel subsidies per year since 2016; the anticipated savings to the Exchequer in 2021 from eliminating damaging fossil fuel subsides; and if he will make a statement on the matter. [23735/20]
View answerI am advised by Revenue that, based on the methodology it used, the estimated cost of fossil fuel subsidies for the years 2016 to 2019 is shown in the table below. The savings to the Exchequer in 2021 from eliminating these subsidies is estimated to be in the region of €1.5 billion, but this does not factor in any subsequent change in consumption due to the increased Excise rates that would arise.
|
2016 |
2017 |
2018 |
2019 |
|
|
€m |
€m |
€m |
€m |
|
|
Excise forgone: Excise rate on Auto-diesel* |
384.1 |
380.3 |
414.8 |
422.8 |
|
Excise forgone: Excise rate on Marked Gas Oil* |
400.4 |
405.7 |
454.9 |
473.0 |
|
Excise forgone: Excise rate on Kerosene* |
568.7 |
589.9 |
622.5 |
578.7 |
|
Excise forgone: Excise rate on Fuel Oil* |
31.3 |
31.8 |
27.1 |
24.7 |
|
Diesel Rebate Scheme |
1.3 |
1.3 |
3.5 |
10.3 |
|
Marine Diesel Scheme |
2.3 |
2.7 |
3.2 |
2.7 |
|
Commercial Sea Navigation |
10.1 |
8.9 |
9.8 |
10.5 |
|
Horticulture Excise Duty Repayment |
0.05 |
0.05 |
0.05 |
0.08 |
|
Fuel Excise Repayment for Disabled Drivers and Disabled Passengers |
8.6 |
9.5 |
10.3 |
10.5 |
|
Total |
1,407 |
1,430 |
1,546 |
1,533 |
|
*Excise compared to the rate for Petrol |
I am further advised by Revenue that consumption data required for it to estimate the cost of fossil fuel subsidies on aviation fuel is not readily available (there is no excise charged on aviation fuel used in cross border travel). The CSO published a research paper in 2019 on fossil fuel and similar subsidies in the years 2012 to 2016. Based on the methodology it used, the CSO estimated that the fossil fuel subsidy on aviation fuel amounted to €494.4 million in 2016.
In addition, fuel used for commercial marine purposes is also included in CSO calculations of fossil fuel subsidies but not included in Revenue estimates as these fuels are, like aviation fuel, exempt from excise.
