Dáil Éireann Debate, Thursday - 26 November 2020
99. Deputy Aindrias Moynihan asked the Minister for Finance if a tax relief or credit could be introduced for low-to-mid-income families that do not meet the criteria to avail of social housing or HAP to assist with their rental payments; and if he will make a statement on the matter. [39119/20]
View answerThe rent relief tax credit was abolished in Budget 2011 and is no longer available to those that commenced renting for the first time from 8 December 2010. This followed a recommendation in the 2009 report by the Commission on Taxation that rent relief should be discontinued. The view of this independent commission was that, in the same manner in which mortgage interest relief increases the cost of housing, rent relief increases the cost of private rented accommodation.
I am advised that there is no reliable basis available on which to estimate the potential cost of the introduction of a tax relief as described by the Deputy. However, according to Census 2016 data, the private rented sector amounts to approximately 310,000 units. This figure includes those in receipt of rental support from the State. It is clear, therefore, that the costs involved would be likely to be very significant.
Furthermore, I must be mindful of the public finances and the many demands on the Exchequer. Tax reliefs, no matter how worthwhile in themselves, reduce the tax base and make general reform of the tax system that much more difficult.
Finally, a tax credit of this nature would be of little benefit to lower-income workers, the unemployed and students, who may not receive the benefit of the relief as they may not be paying sufficient levels of income tax.
I have, therefore, no plans at present to propose the introduction of rent relief or a rent tax credit.
