Dáil Éireann Debate, Thursday - 6 October 2022
155. Deputy Jennifer Murnane O'Connor asked the Minister for Finance the amount in euros that the new concrete blocks levy will impact the cost of building one home; and if he will make a statement on the matter. [49343/22]
View answerAs was announced in my Budget 2023 speech last Tuesday, September 27th, I propose to introduce a levy on concrete blocks, pouring concrete and certain other concrete product which are used in the construction of buildings.
This levy will be set at a rate of 10% on the price of the concrete product, and will apply at the point of first supply of the product in the State. The levy will apply from 03 April 2023.In line with a Government Decision taken in November 2021, the target revenue of €80 million per annum generated from this levy is to contribute towards offsetting the cost to the Exchequer, and so the tax-payer, of the Defective Concrete Blocks (Mica) Redress Scheme.
The Department of Housing, Local Government and Heritage have had a bottom up scientific analysis carried out by an independent Construction Economics Cost Consultant.
They estimate that, taking account of the variables involved, the impact of the levy on construction costs would be between €800 to €1,600 for a typical 3 bed semi-detached or €750 to €1,100 for a 6 floor apartment block with basement. For a typical dwelling this is an increase in of approximately 0.4% - 0.9% in cost.
When soft costs including cost of finance, fees, risk and contingency are included the impact on range for a typical dwelling is €1400 to €2,200 and for a typical apartment is €1300 to €2100, so the increase in costs remains at approximately 0.4% to 0.9% with soft costs included.
