Written Answers Nos. 103-122
103. Deputy Peadar Tóibín asked the Minister for Finance if he plans to fully extended tax relief to accredited counselling and psychotherapy professionals as a qualifying health expense in Budget 2022 and the application of VAT exemption now rated at 13.5% on their earnings over €37,500 from 2022 tax status in line with other allied health professionals. [49141/21]
View answerThe position remains as outlined on 20 September 2021 to Deputy Cormac Devlin.
Section 469 of the Taxes Consolidation Act 1997 provides for tax relief in respect of qualifying health expenses. Section 469 defines "health expenses" as "expenses in respect of the provision of health care including the services of a practitioner".
A practitioner is defined in the section as "any person who is:
a. registered in the register established under section 43 of the Medical Practitioners Act 2007,
b. registered in the register established under section 26 of the Dentists Act, 1985, or,
c. in relation to health care provided outside the State, entitled under the laws of the country in which the care is provided to practice medicine or dentistry there".
In the case of counselling or psychotherapy, the relief is available where the counsellor, psychologist or psychotherapist carrying out the treatment is a qualified practitioner, or where a patient is referred by a qualified practitioner for a diagnostic procedure.
This is similar to the position that applies to other medical expenses, and I am satisfied that the legislation provides sufficient flexibility for expenses that should qualify for tax relief. Accordingly, there are no plans to change these arrangements at this time.
Comprehensive guidance material on medical expenses can be found on Revenue’s website in Tax and Duty Manual Part 15-01-12
www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-12.pdf
With regards to the application of VAT exemption now rated at 13.5% on earnings over €37,500 for counsellors and psychotherapists, the VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. Under domestic legislation, professional medical care services recognised as such by the Department of Health are exempt from VAT. Professional medical care services recognised by the Department of Health are generally those medical care services supplied by health professionals who are enrolled, registered, regulated, or designated on the appropriate statutory register provided for under the relevant legislation in force in the State or equivalent legislation applicable in other countries. This includes health professionals registered under the Medical Practitioners Act 2007, the Nurses Act 1985 and those engaged in a regulated profession designated under Section 4 of the Health and Social Care Professionals Act 2005.
Statutory Instrument No. 170 of 2018 (Health and Social Care Professionals Act 2005 (Regulations 2018) of 2 July 2018 designates psychotherapists and counsellors as a regulated profession and established the Counsellors and Psychotherapists Registration Board. Professional counselling and psychotherapy services provided by persons registered by this Board are exempt from VAT from the date of their registration.
The thirteen members of the Counsellors and Psychotherapists Registration Board were appointed with effect from 25 February 2019.
The Board has begun the substantial body of work which must be undertaken before it is in a position to open its registers. Questions on the establishment of the Counsellors and Psychotherapists Registration Board and their progress in opening their register are a matter for the Minister for Health.
104. Deputy Pearse Doherty asked the Minister for Finance if he has received a copy of the Statistical Report for the Special Assignee Relief Programme 2019 by the Revenue Commissioners; when the report will be published; and if he has requested a delay in the publication of same. [49144/21]
View answerI can confirm that I have received from the Revenue Commissioners a copy of their Annual Report on the Special Assignee Relief Programme (SARP) for 2019.
The document will be published today, Budget Day, within the Tax Expenditures Report which forms part of the Budget documentation.
I can also confirm that I did not request any delay in relation to publication of the SARP Annual Report.
105. Deputy Ged Nash asked the Minister for Finance the discussions he or his officials have had with a bank (details supplied) in relation to lifting the pay cap in view of comments by its CEO; and if the pay cap will not be lifted until at least a time that SEARS legislation is enacted. [49146/21]
View answer106. Deputy Ged Nash asked the Minister for Finance the discussion he has had with an organisation (details supplied) on the lifting of the pay cap; and if he will make a statement on the matter. [49147/21]
View answer108. Deputy Ged Nash asked the Minister for Finance his views on recent comments by a person (details supplied) that the lifting of the pay cap is vital to the long-term sustainability of the indigenous banking sector. [49149/21]
View answerI propose to take Questions Nos. 105, 106 and 108 together.
Statements made by the Bank of Ireland CEO, or any other official of the bank, in relation to challenges facing the banking sector is a matter entirely for those individuals. This includes remuneration restrictions. The same applies to statements made by officials of other banks and of the banking sector representative body, the BPFI.
In the past, I have answered a parliamentary question for the Deputy in relation to remuneration restrictions at the banks. The position has not changed in the meantime and for the benefit of the Deputy, I am providing my previous response as follows:
Government policy on banking remuneration has remained unchanged since the financial crisis. Extensive restrictions are in place and these are not simply confined to a small number of senior bankers whose pay is restricted by the €500,000 pay cap. These affect circa 23,000 workers across the three banks in which the State has a shareholding. The policy dictates that variable pay including bonuses and any other fringe benefits including the likes of health insurance and childcare cannot be paid to any staff members from the most junior lowest paid staff to the most senior ranks.
As a result the previous Government undertook to carry out a review of Government bank remuneration policy to determine if it remained fit for purpose. My department worked with the specialist advisory division of Korn Ferry to undertake this review. Stakeholders engaged with included the major institutional investors in the banks, proxy advisory firms, the Financial Services Union (FSU), the chairs of the remuneration committee in each of the banks, the Central Bank of Ireland and representatives of the Single Supervisory Mechanism (SSM) in Frankfurt.
As I have indicated previously I have read the report. It is a complex and far ranging piece of work and it has most certainly informed my thinking on the issue.
I acknowledge that there is a very different European regulatory environment in place now which will help prevent the return to some of the excesses of the boom years including the EU Capital Requirements Directive (CRD IV) and the Remuneration Guidelines of the European Banking Authority.
Furthermore the powers of the Central Bank were significantly enhanced by the Central Bank (Supervision and Enforcement) Act 2013, particularly powers to take action against wrongdoing by financial services providers and to strengthen the ability of the Central Bank to take action against individuals.
However I believe the issue of bank remuneration is inextricably linked to further restoring public confidence in the culture and accountability of our banks and the forthcoming SEAR regime and the Central Bank (Amendment) Bill more generally, will provide an effective framework and will help to reassure the public that meaningful cultural change is underway in the banking sector.
107. Deputy Ged Nash asked the Minister for Finance if he will give a full report on discussion papers received from his officials on the sale of shares in a bank (details supplied); and if he will report on any meetings he or his Department have had with banks on the matter. [49148/21]
View answerOn the 23rd June, I announced my intention to sell part of the State’s 13.9% shareholding in Bank of Ireland by way of a trading plan. At the same time, I confirmed that I was limited in the amount of detail I could disclose in relation to the plan as it would be detrimental to maximising value for the taxpayer.
This position has not changed in the meantime and, accordingly, details including the number of shares sold, the average price achieved and the cash generated will be disclosed once the plan has been completed.
The Deputy may be aware that each time the State’s shareholding in BOI falls below a full percentage point a market announcement is required in compliance with Stock Exchange and investment regulations. The third such announcement issued on 1st October confirming that the State’s shareholding in the bank is now below 11%.
All I would add at this stage is to assure you that a full analysis of the options open to the State was conducted before I agreed to launch the trading plan. This was conducted by officials with assistance from advisors and I am confident that the approach taken will deliver good value for citizens as we reduce our ownership in the bank.
109. Deputy Catherine Murphy asked the Minister for Finance the progress made to date in respect of public liability insurance in the context of start-up businesses and existing businesses (details supplied) being quoted extremely high premiums placing an unnecessary burden on their ability to trade and or continued existence; and if he has engaged with the Tánaiste and Minister for Enterprise, Trade and Employment on this issue. [49171/21]
View answerI am aware that the affordability and availability of public liability insurance are issues of concern for many businesses, particularly those involved in tourism, such as the company referred to. As the Deputy will be aware, neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, nor do we have the power to direct insurance companies to provide cover to specific businesses or individuals. This position is reinforced by the EU Solvency II Directive framework.
However, Government understands the importance of businesses being able to access affordable insurance, and is working to improve the cost and availability of this vital financial service through 66 cross-departmental actions under the Action Plan for Insurance Reform. This work is being prioritised by the Cabinet Committee Sub-Group on Insurance Reform, which is chaired by the Tánaiste and Minister for Enterprise, Trade and Employment. The Sub-Group meets regularly to review the implementation of this reform agenda, which is progressing well, with 34 of the 66 actions now complete. Later this month, we will be meeting to discuss how to progress the remaining reforms in a timely manner.
I note that the details supplied mention the UK’s withdrawal from the EU in relation to the capacity issues currently being experienced by some businesses when seeking public liability cover. Although exacerbated by Brexit, I understand that a more prominent reason for the market withdrawal of some international insurers in recent years has been instability in the personal injury claims environment. I believe the new Personal Injuries Guidelines , a key reform which has been delivered several months ahead of schedule, should help to reduce uncertainty for claimants and insurers, and encourage greater use of the Personal Injuries Assessment Board (PIAB) in claims settlement. Given that they have also cut award levels for many injuries, use of the Guidelines should reduce the overall cost of claims. I expect insurers to reflect these savings by lowering premiums for customers, including businesses. Government will hold the industry to account in this regard. I also believe insurers should now extend their risk appetite to provide insurance in sectors experiencing capacity issues, such as tourism, given the stability afforded by the Guidelines.
Upcoming Action Plan priorities also aim to ease the insurance burden for businesses in particular. These include legislative proposals to reform the law on Occupiers’ Liability and the Duty of Care, which are expected to be brought to Government for approval shortly. The Department of Enterprise, Trade and Employment is also working to bring forward legislation to enhance the role of the PIAB, which should lead to an increased number of claims being settled more cost-effectively. Minister of State Fleming and I will continue to work with colleagues to drive forward these reforms with a view to improving the insurance environment for both existing businesses and start-up firms, which are vital to the post-pandemic recovery.
110. Deputy Seán Haughey asked the Minister for Finance if a local property tax return can be made through the post using a hard copy form; if his attention has been drawn to difficulties faced by taxpayers who are not online in obtaining hard copy forms for local property tax; if a form can be sent to a person (details supplied); and if he will make a statement on the matter. [49172/21]
View answerI am advised by Revenue that over 1.4 million notices have issued to property owners in recent weeks, setting out what is required to meet Local Property Tax (LPT) obligations for the new ‘valuation period’ (2022 to 2025). This includes approximately 200,000 paper LPT Returns to property owners who have not previously availed of the online options.
Property owners who have not received a hard-copy LPT Return and are not able to file online should not be concerned and should contact the LPT Helpline on (01) 7383626 for assistance. Revenue’s call centre agents will help with the Return filing process and will set up the property owner’s preferred payment method. In advance of calling the Helpline, property owners will need to have determined the market value of their property so that the Return can be completed. They should also have their Property ID and PIN to hand, which can be found on any LPT correspondence previously received from Revenue.
When determining the market value of a property for the new ‘valuation period’, it is not necessary for property owners to use online sources for guidance if it is difficult for them to do so. Non-online sources such as the property pages in newspapers (local and/or national) or checking the information displayed in local auctioneer offices are alternative sources that can provide useful guidance to assist in determining the correct ‘valuation band’ to be applied.
Regarding the specific property referenced by the Deputy, Revenue has confirmed that it will make direct contact with the person in question and provide any assistance required.
111. Deputy Seán Haughey asked the Minister for Finance when local tax offices will be open to the public to facilitate taxpayers getting advice and assistance regarding their wish to make income tax returns in hard copy format; and if he will make a statement on the matter. [49173/21]
View answerRevenue has confirmed that the timelines around reopening offices and facilitating public access is kept under continuous review and will be considered further in line with the dates announced by Government for the easing of restrictions. In considering the most appropriate time to reopen offices, Revenue will continue to focus on customer and staff safety as its highest priority and, as was the case for most of its public offices before the pandemic, will re-open on an appointment only basis where all such meetings will fully observe the necessary social distancing protocols.
Throughout the pandemic, Revenue has continued to provide a full range of online services for taxpayers to manage their tax affairs, which for the most part remove any requirement to access public offices. These services, which include an online communications channel through the MyEnquiries system, are available 24/7, are easy to use and are fully secure.
For taxpayers who, for a variety of reasons, may not have access to the online services, Revenue is providing extensive support across its various telephone helplines and is operating a full service for queries being received through the postal system. Further details regarding the different telephone helplines is available on the Revenue website under "contact details", which may be of assistance to the Deputy. For the more complex matters that require one to one engagement, taxpayers can avail of virtual appointments with the relevant Revenue official through video-conferencing facilities.
Regarding income tax return filing, Revenue has advised me that mandatory electronic filing (e-filing) continues to be a requirement for most self-assessed taxpayers. The only exception is where a taxpayer is not e-enabled due to issues such as insufficient internet access, age related difficulties or physical/mental disability. Further information on mandatory e-filing, including the type of exclusions available is set out on the Revenue website (via "starting and running a business").
Finally, if the Deputy is aware of a specific taxpayer that requires assistance, he should provide the details through the Oireachtas Helpline and Revenue will make direct contact.
112. Deputy Francis Noel Duffy asked the Minister for Finance the justification for the 4% interest charged per annum on deferred local property tax in cases in which the Revenue Commissioners make a determination that a householder's income is insufficient and does not have the capacity to pay the tax; if this high interest charge will be reviewed; and if he will make a statement on the matter. [49242/21]
View answerThe 2012 report of the Interdepartmental Group on the Design of a Property Tax considered the issue of introducing an exemption or waiver for property owners below a certain income threshold. Having considered the possible inequities and administrative challenges of such an exemption or waiver structure the group recommended instead a deferral scheme that would assist property owners in a number of different scenarios including low income. The interdepartmental group recommended that where taxpayers are entitled to, and have elected for, deferral of LPT, interest due on deferred payments should be at a lower rate to the rate charged on overdue LPT which is 8% per annum. The Government accepted these recommendations.
Part 12 of the Finance (Local Property Tax) Act 2012 (as amended) accordingly includes arrangements whereby a person may opt to defer, or partially defer, payment of the tax if certain conditions are met. Any LPT that is deferred between 2013 and 2021 carries an interest charge of 4% per annum. Interest will accrue on the deferred amount until such time that it is paid off. In providing for the possibility of deferral of the tax, the reduced rate of interest recognises that the circumstances in which a person defers the tax charge are very different from those where the property owner simply fails to pay the tax.
A review of the interest rate on deferred LPT took place this year, in advance of the next LPT valuation period (i.e. 2022 to 2025). The review took account of the Covid initiative on the warehousing of tax debts, in respect of which a reduced interest rate of 3% applies for late payment of outstanding liabilities. In the interests of consistency and fairness, the Government decided to reduce the LPT deferral rate to 3%. The 3% rate will apply to any LPT that is deferred on or after 1 January 2022. It will also apply to any LPT that was deferred between 2013 and 2021, to the extent that it is still outstanding in 2022. The recently enacted Finance (Local Property Tax) (Amendment) Act 2021 also provides that for 2022 the deferral income thresholds will be increased to €18,000 for a single owner (from €15,000) and €30,000 for a couple (from €25,000).
Where a liable person does not qualify for or does not wish to avail of a deferral there are a wide number of phased payment options available to assist with budgeting. The various options are designed to provide the maximum possible flexibility for individual circumstances. Throughout the pandemic, Revenue has engaged extensively with individual taxpayers experiencing financial difficulties due to the pandemic to agree flexible arrangements that best suit their circumstances, including in respect of LPT liabilities and will continue to fully engage with taxpayers facing tax payment difficulties.
113. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which projects that fall under his Department and are within the revised National Development Plan are at an advanced stage; the extent to which preliminary work has taken place or on-site works are in hand or proposed; the expected delivery date of each; and if he will make a statement on the matter. [49253/21]
View answerThe Department of Finance (Vote 7) has a capital allocation of €1m per annum under the revised National Development plan 2021-2023. This budget is allocated to fund expenditure on IT hardware, systems development and for maintenance and building works on the Departmental offices. Due to the nature of the expenditure expected no preliminary work has taken place.
The Office of the Revenue Commissioners (Vote 9) has advised that its digitalisation agenda is under way. This includes the modernisation of Customs processes under the Union Customs Code (UCC) multi-year EU programme which has already delivered a new import system. Work is also well advanced on a new export system, which is scheduled for delivery in 2022. Further development of Revenue’s tax systems via real time electronic connectivity are at planning stage with incremental delivery planned over the next number of years.
114. Deputy Peadar Tóibín asked the Minister for Finance if a decision has been made on whether to extend the banking levy considering the last payment under the legislation is to be made no later than the 20 October 2021. [49312/21]
View answerAs the Deputy is aware, the Financial Institutions ("Bank") Levy was introduced for the three-year period 2014 to 2016 with the purpose of enabling the banking sector to contribute to economic recovery. In the Finance Act 2016 the Levy was extended until 2021. That extension had been subject to a review being undertaken of the methodology used to calculate the levy, which included a public consultation with stakeholders in June 2016. That stakeholder exercise was inconclusive in terms of getting external agreement on a possible replacement to the DIRT-based methodology.
Ultimately the DIRT-based formula was retained but the then Minister for Finance took into account the suggestion that arose from the Public Consultation that the base year for calculating Levy liability should not be static, and announced in Budget 2017 the introduction of a rolling two-year series of base years.
In order to protect the annual €150 million yield based on the financial institutions' DIRT liability, the rate payable has increased from 35% in 2014 to 308% for 2021.
The Bank Levy is due to cease in 2021. I am currently considering whether to extend the levy beyond 2021, and if so the format it will take. In making my decision on this matter, the Deputy should note that I will be giving consideration to the significant changes taking place in the Irish banking sector, including the planned withdrawal of two retail banks from the market.
115. Deputy Peadar Tóibín asked the Minister for Finance the number of REITs operating in the Irish market; and the number of properties held by these REITs. [49326/21]
View answerI am advised by Revenue that due to the small number (less than 10) of Real Estate Investment Trusts (REITs) that operate in Ireland and Revenue’s obligation to maintain the confidentiality of taxpayer information, specific quantitative information in relation to these entities cannot be provided.
However I would note that REITs are required to be publicly listed companies and therefore publish information such as annual accounts online, which may be of assistance to the Deputy.
116. Deputy Peadar Tóibín asked the Minister for Finance the number of property purchases, residential and rental, which included the purchase of more than ten properties in each of the years 2015 to 2020. [49328/21]
View answerI am advised by Revenue that the table below provides the number of property purchases and properties purchased, where greater than ten properties were included in a single transaction in each of the years from 2015 to 2020. The data are based on Stamp Duty returns where multiple purchases were filed on a single instrument.
The returns do not indicate whether the intended use of the properties by the purchaser was rental or otherwise.
|
Year |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
|
Number of Properties |
1,278 |
765 |
534 |
797 |
1,018 |
462 |
|
Number of Transactions |
60 |
47 |
32 |
46 |
59 |
28 |
117. Deputy Peadar Tóibín asked the Minister for Finance the number of automatic teller machines closed by county in each of the past five years; and the number which were installed in each of the past five years by county. [49353/21]
View answerThe level of data requested is not available on Automatic Teller Machines (ATMs) operating in Ireland.
I am informed by the Central Bank of Ireland that the total number of ATMs in Ireland has remained relatively stable over the past 12 months, however, there has been a shift in ownership with bank ownership falling significantly since 2016.
The Banking and Payments Federation of Ireland (BPFI) collects data on the total number of bank operated ATMs across the country. This has been declining in recent years, mainly because banks have sold, mostly offsite, ATMs to independent ATM operators.
I am informed by the BPFI that in June 2021 there were approximately 2,260 ATMs operated by banks, this is down from approximately 2,350 in December 2020.
118. Deputy Claire Kerrane asked the Minister for Finance the estimated full year cost of recruiting four additional assistant principal officer case managers for the Tax Appeals Commission. [49367/21]
View answerIn response to the Deputies’ question I am informed by the Tax Appeals Commission that the estimated full year cost of recruiting four additional Case Managers at Assistant Principal Officer level is €278,808 (excluding Employer’s PRSI) or €309,616 (including Employer’s PRSI).
Section 20 of the Finance (Tax Appeals) Act 2015, as amended, provides that the staff of the Commission are civil servants and as such their salary is as per the published civil service pay scales. The starting point of the salary of an Assistant Principal Officer is currently €69,702 and the above estimate assumes that the additional staff are new entrants to the Civil Service recruited through the Public Appointments Service. The latest pay scales of civil servants at all grades (including Assistant Principal Officer) are provided in the Department of Public Expenditure and Reform’s Circular 19/2021, available at the following link: www.gov.ie/en/circular/7bdc5-application-of-1-october-2021-pay-adjustments/
The staffing needs of the Tax Appeals Commission are continuously reviewed, taking account of workloads, management priorities and the ongoing need to respond to changing demands.
119. Deputy Paul Murphy asked the Minister for Finance if his attention has been drawn to the fact that unlike commercial landlords, owner-occupiers and social landlords cannot write-off their defects levies against their tax liabilities (details supplied); and if he will ensure that Budget 2022 contains measures to assist owner-occupiers and social housing providers who have paid or are paying levies for remediating defects. [49397/21]
View answerAs the Deputy will be aware, the Minister for Housing, Local Government and Heritage, has established an Independent Working Group to examine the issue of defective housing. Officials from my Department participate in this Working Group. The objectives of the group are to identify the scope of relevant significant defects in housing, to evaluate the scale of housing affected, to propose a means of prioritising defects, to evaluate the cost of remediation, to recommend appropriate mechanisms for resolving defects and, to consider financing options in line with the Programme for Government commitment to identifying options for those impacted by defects to access low-cost, long-term finance.
Separately, my Department's Tax Expenditure Guidelines are clear that a tax-based intervention should only be considered where it would be more efficient than a direct expenditure measure.
In the circumstances, any intervention by me would seem to be premature at this point.
120. Deputy Peadar Tóibín asked the Minister for Finance the number of businesses availing of debt warehousing with the Revenue Commissioners; the total amount of debt that is warehoused; if the Revenue Commissioners estimated the amount of this debt that will not be paid; and if it is included in the published tax receipts for 2021. [49419/21]
View answerThe Debt Warehousing Scheme remains available to support businesses that are experiencing tax payment difficulties arising from the COVID-19 pandemic. The scheme applies to VAT debts, PAYE (Employer) debts, certain self-assessed income tax amounts and overpayments of both the Temporary Wage Subsidy Scheme (TWSS) and the Employment Wage Subsidy Scheme (EWSS). To qualify for debt warehousing, a business must continue to file all tax returns, even though the liability cannot be paid.
For eligible businesses, Period 1, the period during which tax debts may be warehoused, has been extended to 31st December 2021, and tax debts can then be ‘parked’ interest-free until 31st December 2022. At that point, the warehoused debt may be paid in full without incurring an interest charge or can be paid through a tailored phased payment arrangement starting in 2023 at a significantly reduced interest rate of 3% per annum. This compares to the standard rate of 8% or 10% per annum that would otherwise apply to such debts.
Revenue has advised me that the total amount of debt warehoused at the end of September 2021 was €2.7 billion in respect of over 93,000 businesses. At the end of 2022, Revenue will engage with all businesses availing of the scheme to agree a suitable phased payment arrangement in respect of the ‘parked’ liability. These arrangements will be flexible and will be extended to suit individual financial circumstances, providing current taxes are paid as they fall due. Revenue has not estimated the potential amount of warehoused debt that will not be paid as the expectation at this point is that flexible payment arrangements will assist businesses in meeting their obligations over time.
Finally, the value of the debt warehoused is not included in the published tax receipts for 2021 as the debt has been ‘parked’, therefore it has not been collected. Where businesses opt to make an early payment of these debts in 2021, this figure will be included in the published tax receipts. Further information on the Debt Warehousing Scheme is available on the Revenue website.
121. Deputy Richard Boyd Barrett asked the Minister for Finance if he has plans to extend the help to buy scheme to include second-hand homes; and if he will make a statement on the matter. [49446/21]
View answerHelp-to-Buy (HTB) is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C of the Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the scheme. Another main aim of the policy underpinning the design of scheme is to help encourage the building of additional new properties.
With regard to the Deputy's question about extending the scheme to second-hand properties, HTB is specifically designed to encourage an increase in demand for new build homes in order to encourage the construction of an additional supply of such properties. A move to include second-hand properties within the scope of the relief might not improve its effectiveness; on the contrary, it could serve to dilute the incentive effect of the measure in terms of encouraging additional supply. I can confirm, therefore, that I have no plans at present in this regard.
122. Deputy Fergus O'Dowd asked the Minister for Finance if his attention has been drawn to the financial difficulties and need for special relief for glasshouse growers in Ireland (details supplied); and if he will make a statement on the matter. [49493/21]
View answerMineral Oil Tax (MOT) applies to minerals oils used for motor or heating purposes in the State. The rate of MOT is comprised of a carbon and non-carbon component.
I am advised by Revenue that Section 98 of Finance Act 1999 provides for a partial relief for MOT for heavy oil and liquefied petroleum gas (LPG) used in horticultural production and the cultivation of mushrooms. Heavy oil refers to diesel, kerosene, and fuel oil, and LPG is defined in MOT legislation as “petroleum gases and other gaseous hydrocarbons falling within CN Codes 2711 12 11 to 2711 19 00”. The relief is operated by way of repayment only. The repayment amount is the difference between the MOT paid and the predetermined rate set out in section 98 for heavy oil/LPG. More information on the operation of the relief is also available on Revenue’s website.
With regard to carbon tax and Budget 2022, as the Deputy will be aware, it is a longstanding 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.
The Deputy will also be aware that there are support schemes and investment aid available to horticultural producers from the Department of Agriculture, Food and the Marine and Bord Bia. Full details are available at the website addresses below.
www.gov.ie/en/service/d6dde0-commercial-horticulture-investment-aid-scheme-2020/
www.bordbia.ie/farmers-growers/get-involved/how-we-help/
