Dáil Éireann Debate, Tuesday - 16 November 2021
225. Deputy Neasa Hourigan asked the Minister for Finance his plans to explore the potential for new tax measures to support retrofit as per action 214 of the Climate Action Plan 2021; and if he will make a statement on the matter. [56027/21]
View answerOne of the actions set out in the recently published Climate Action Plan is that my Department will explore the potential for new tax measures to support retrofit. As provided in the action plan, the timeline established for this action is Q4 2022. Details of the process are yet to be finalised.
In relation to the process of assessing proposals for tax expenditures generally, I would make the following observations:
- In the normal course of events, the introduction of any new tax expenditure measure would take place in the context of the annual Budget and Finance Bill process.
- It would also be usual that proposals for tax expenditure measures would be assessed in accordance with my Department's Tax Expenditure Guidelines. These make clear that it is important that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures and where a tax-based incentive is more efficient than a direct expenditure intervention.
- Furthermore, I must always be mindful of the public finances and the many demands on the Exchequer. Tax reliefs, no matter how worthwhile in themselves, lead to a narrowing of the tax base and a strong and convincing case for the benefits and outcomes need to be articulated in order for due consideration to be given for the commitment of scarce taxpayer resources for such reliefs.
