Written Answers Nos. 426-440
428. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by establishing a new levy of 5% on the profits of all airlines and aircraft leasing companies; and if he will make a statement on the matter. [41578/22]
View answerI am advised by Revenue that the gross additional yield from imposing a 5% levy on the taxable profits of all airlines and aircraft leasing companies is tentatively estimated to be in the region of €36 million for a full year. These estimates are based on the 2020 tax returns, the latest year for which fully analysed data is available.
These estimates do not take account of any potential change in behaviour by the entities concerned in response to the rate change.
As the Deputy will be aware, the trading profits of companies in Ireland are generally taxed at the standard corporation tax rate of 12.5%. Some of the main features of the current regime are its simplicity and that it applies to a broad base.
Imposing additional taxes on certain sectors would involve increased complexity and could change the attractiveness of Ireland's corporate tax regime. While it is possible that imposing such taxes could lead to theoretical gains, there is a risk of such taxes leading to lower levels of economic activity and to companies passing the additional tax burden onto their investors, suppliers and, ultimately, consumers.
It should be noted that Ireland’s corporation tax regime has been undergoing a process of significant reform in recent years. The Deputy will be aware that, on 8 October 2021, Ireland joined over 130 other member jurisdictions of the OECD/G20 Inclusive Framework in reaching an historic two-pillar agreement to address the BEPS-related tax challenges that have arisen from globalisation and digitalisation.
In consideration of the need for certainty regarding our corporation tax regime, and acknowledgment of the significant international corporate tax developments underway, I do not believe it is appropriate to introduce additional taxes or levies on companies at this time.
431. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by increasing the zoned land tax to 25% of market value of the land and in cases in which the levy will also be imposed if the planning permission is not commenced within 12 months of its granting or where the development is not completed within 36 months of the planning permission being granted; and if he will make a statement on the matter. [41602/22]
View answerThe residential zoned land tax (RZLT) is designed to prompt residential development by owners of land that is zoned for residential or mixed use purposes and that is serviced, and the primary objective of a RZLT is to increase the supply of housing rather than to raise revenue. The rate of residential zoned land tax is set at three percent on its commencement in 2024.
In relation to the Deputy's question regarding the estimated revenue yield from an increase in the residential zoned land tax from three percent to twenty-five percent, at this time it is not possible to estimate a projected yield increase as the mapping process by Local Authorities has not yet concluded.
In November this year the Local Authorities will publish the first draft of the zoned land maps, which will identify residential zoned land within scope of the tax. Following the publishing of the draft maps, there will be an appeals process whereby a person who believes their land does not justify inclusion within the tax can appeal to their Local Authority and An Bord Pleanála on the matter.
In December 2023 the Local Authorities will publish the final version of the residential zoned land maps. When the zoned land mapping process is concluded and the final maps are published, I will be in a better position to estimate the projected yield from land falling within the scope of the tax.
432. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by establishing a 10% levy on vacant or derelict residential property as per the number of vacant properties identified in the recent census but in cases in which properties tied up in probate, the fair deal scheme or holiday homes are excluded; and if he will make a statement on the matter. [41603/22]
View answerAccording to the preliminary Census figures release on 23 June, 166,752 vacant dwellings were recorded in Census 2022. The preliminary information also provided a breakdown by reason, this is available at:
www.cso.ie/en/csolatestnews/presspages/2022/censusofpopulation2022-preliminaryresults/.
It should be noted that the Census measure of vacancy is a point in time measure of vacancy relating to the weeks either side of Census Night and is not intended to be a measure of long term vacancy or that these properties are available for re-use. These homes may well have been occupied again a few weeks after Census Night. Dwellings under construction and derelict properties are also included in the Census count of vacant dwellings. The Census information does not include data on the valuation of properties.
The Census information released in June is preliminary and work is ongoing by the CSO with a view to sharing the full set of detailed results between April and December 2023.
Therefore, my Department or Revenue do not have the necessary information on which to calculate an estimate of the revenue effects sought by the Deputy.
433. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost of abolishing the help-to-buy-scheme; and if he will make a statement on the matter. [41604/22]
View answerThe Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with a deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in Section 477C of the Taxes Consolidation Act (TCA) 1997.
HTB is a demand-led tax expenditure which is subject to a broad range of variables, including housing completion rates and prices. The estimated cost of HTB in 2023 would be dependent on the nature and extent of the scheme in 2023, about which decisions have yet to be taken. As such, it is not possible to provide a reliable estimate of the savings that would arise from abolition of the scheme.
However, I am advised by Revenue that the total value of approved HTB claims that commenced claim stage in 2021 was €192 million, while the value of approved claims commenced in 2022 to-date is €93 million. Although it does not take account of any potential changes in taxpayer behaviour, the above costs can be assumed to be broadly indicative of the annual saving if the HTB scheme was abolished.
At present, HTB is subject to a sunset clause with an associated date of 31 December 2022. Accordingly, there is no provision in the current budgetary arithmetic in respect of the cost of the measure beyond end-December 2022.
The Deputy may wish to note that work by external consultants, Mazars, on the review of HTB is nearing completion. The outcome of this review will help to inform decisions on the future of the scheme beyond its current sunset date. However, this is a matter that will fall to be considered by Government in the context of the Budget 2023 process and it would not be appropriate for me to offer comment further at this time.
434. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by increasing stamp duty on non-residential property to 10%; and if he will make a statement on the matter. [41605/22]
View answerI am advised by Revenue that the ‘Ready Reckoner’, which is available at www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf, shows, on page 19, the estimated yield from changes to the rate of Stamp Duty on non-residential property.
The current rate of Stamp Duty on non-residential property is 7.5% and the proposed increases can be derived on a pro rata basis from the published table.
435. Deputy Richard Boyd Barrett asked the Minister for Finance the latest figures of the net worth of Irish households including the net worth of the top 1%, the top 5% and the top 10% of these households; the estimated revenue that would be generated by levying a tax of 2% on the top 5% allowing for a tax-free allowance for each household of €1 million; and if he will make a statement on the matter. [41606/22]
View answerIn order to estimate the potential revenue from a tax of the nature outlined in this question it would first be necessary to identify the net worth of Irish households at an individual level. I am informed by the Revenue Commissioners that they currently have no statistical basis for compiling estimates in relation to such a tax. Although an individual's assets and liabilities are declared to the Revenue in a number of specific circumstances (for example, after a death), this information is not a complete measure of financial assets in the State, nor is it recorded in a manner that would allow analysis of the implications of an overarching wealth based tax.
The Central Bank’s Quarterly Financial Accounts for Q4 2021 (published 12 May 2022) does contain an overall household net wealth figure, but not the breakdowns requested by the Deputy.
It shows that household net wealth increased by €38.5bn in Q4 2021, to reach a record high €995bn. It should be noted that this growth may not reflect the underlying experiences of all households, or the distribution of wealth, and does not provide the granularity of data required to arrive at an estimate of the nature being sought.
The CSO published their Household Finance and Consumption Survey 2020 in May 2022. It has a median household net wealth figure and also provides a breakdown by income deciles, though again not the breakdown requested by the Deputy.
Therefore I cannot provide the estimated yield from a tax of the nature outlined in this question.
436. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost of lost VAT to the Exchequer by introducing price controls that cap petrol and diesel at €1.75 per litre, electricity at 25-cent per kilowatt hour, natural gas at 8-cent per kilowatt hour and oil and kerosene at €1 per litre; and if he will make a statement on the matter. [41607/22]
View answerI am informed by Revenue that the theoretical estimated full year cost of introducing these measures is provided in the table below. The Deputy should note, however, that a price cap of this nature would result in operators selling fuel at below cost which is not sustainable in any business. The estimates are based on the most recently available price information and do not take account any behavioural change by either vendors or purchasers.
|
Commodity |
Price € |
VAT Loss (€m) |
|
Petrol (l) |
1.75 |
60 |
|
Diesel (l) |
1.75 |
65 |
|
Oil (l) |
1.00 |
3 |
|
Kerosene (l) |
1.00 |
85 |
|
Electricity (KWh) |
0.25 |
32 |
|
Gas (KWh) |
0.08 |
17 |
|
Total |
262 |
437. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by increasing capital gains tax to 40%; and if he will make a statement on the matter. [41608/22]
View answerI am advised by Revenue that the estimated yield from increasing the rate of Capital Gains Tax (CGT) is published on page 13 of the Revenue Ready Reckoner, available at www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.
While the exact changes sought by the Deputy are not provided, they can be estimated on a straight-line or pro-rata basis. These estimates do not take account of any potential change in behaviour by taxpayers in response to changes in the tax rate.
438. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by establishing a new rate of corporate tax of 50% on the profits of all energy companies; and if he will make a statement on the matter. [41609/22]
View answerEnergy policy, including increasing costs of energy supply and the taxation of profits, is a matter of key concern to the Government. In April, the Government approved and published the National Energy Security Framework, which sets the overarching response to the impacts of the war in Ukraine on the energy system in Ireland. The Framework outlines the structures which are in place within Government to monitor and manage our energy supplies, it sets out the plans which are in place to deal with energy security emergencies and it sets out how Government can support households and businesses to save energy and save money.
The Framework includes a commitment to work with the European Commission and other Member States to consider the proposals set out in the EU’s REPowerEU plan. Under REPowerEU, it is considered that taxation or regulatory measures aimed at removing gains created by the current crisis situation could be considered.
The increasing cost of energy supply is complex and there are many factors which must be considered including energy security, rising input costs and costs to consumers, and the need to reduce dependence on fossil fuels. The complexities of the energy market and the range of producers and contracts must also be acknowledged. The Renewable Energy Support Scheme (RESS) contains strong consumer protection measures, with wholesale market revenues above the auction price returned to electricity consumers through the Public Service Obligation Levy. All of these aspects must be considered in connection with proposed new policy measures.
Energy policy is under the remit of the Department of the Environment, Climate and Communications (DECC). The Energy Security Energy Group, which is chaired by DECC and includes the Commission for Regulation of Utilities, is considering these issues in its role overseeing the implementation of the National Energy Security Framework.
Officials in DECC are working to examine where gains created by the current crisis situation may be occurring and to consider what, if any, action would be appropriate having regard to over-arching energy policy. This includes engaging with Department of Finance officials to determine potential fiscal response measures. This ongoing work includes consideration of potential negative impacts of any such action. For example, there is a risk that a windfall tax may lead to higher consumer costs and negatively impact upon investment in the energy sector, particularly in the area of renewables. This would negatively impact the Government's ambitions to tackle climate change through the reduction of carbon emissions.
It is worth noting that the Government has taken a number of measures to reduce the burden on consumers in relation to the cost of energy. This includes providing €200 worth of energy credit to every household in the country; reductions in fuel excise duty; and a reduction in the VAT rate for electricity and gas.
With regard to the projected yield to the Exchequer of introducing a new windfall profits tax on energy providers. Trading profits of companies in Ireland are generally taxed at the standard Corporation Tax rate of 12.5%.
I am advised by Revenue that it is tentatively estimated that establishing a corporation tax rate of 50% on the profits of all energy providers would generate approximately €271 million for a full year. This estimate is based on the 2020 tax returns of energy providers, the latest year for which fully analysed data are available. It should be noted that this estimate does not take account of any potential change in behaviour by the entities concerned in response to changes in the tax rate.
439. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost of reducing the pension earnings limit from €115,000 to €60,000; and if he will make a statement on the matter. [41619/22]
View answerI am informed by Revenue that the estimated full year yield from decreases in the earnings limit for Occupational Pension Schemes, Retirement Annuity Contracts and Personal Retirement Savings Accounts can be found by consulting page 10 of the Revenue Ready Reckoner, published on the Revenue website at
www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.
440. Deputy Ged Nash asked the Minister for Finance the dividends paid by State-owned enterprises under the remit of his Department in each of the past five years; the projected dividends to be received in 2022, in tabular form; and if he will make a statement on the matter. [41650/22]
View answerI wish to inform the Deputy that it is not possible to provide the information sought in the time available and, therefore, I will make arrangements to provide the information in line with Standing Orders.
