Written Answers Nos. 297-321
297. Deputy Matt Carthy asked the Minister for Transport the National Road projects for which 2023 funding is dependent on match funding from EU sources such as the Connecting Europe Facility, in tabular form; and if he will make a statement on the matter. [13755/23]
View answerAs Minister for Transport I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise you on the status of EU linked projects.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
298. Deputy Pádraig Mac Lochlainn asked the Minister for Transport his views on the standards of services for lorry drivers that are required at service stations on motorways and national roads around Ireland; if he agrees that lorry drivers play a key role in our economy and deserve to have acceptable services at various locations on key transport routes; and if he will make a statement on the matter. [13940/23]
View answer299. Deputy Pádraig Mac Lochlainn asked the Minister for Transport his views on the standards of services for lorry drivers that are required at service stations on motorways and national roads around Ireland; if he agrees that lorry drivers play a key role in our economy and deserve to have acceptable services at various locations on key transport routes; and if he will make a statement on the matter. [13941/23]
View answerI propose to take Questions Nos. 298 and 299 together.
As Minister for Transport I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise you on the status of this project.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
300. Deputy Holly Cairns asked the Minister for Transport if he will meet with a group (details supplied) concerning issues relating to a semi-State transport body pension scheme. [14020/23]
View answerI do not intend to meet the group in question as issues in relation to CIÉ pension schemes are primarily a matter for the trustees of the schemes, the CIÉ Group and their employees. I can however, reassure the Deputy that I am regularly briefed by officials on issues relating to CIÉ pensions and such matters continue to be addressed through my Department's ongoing engagement with the company.
CIÉ has advised that the Group’s two pension schemes, namely the Regular Wages Scheme (“RWS”) and 1951 superannuation scheme (“1951 Scheme”), are currently not in compliance with the Minimum Funding Standard (MFS) as defined in the Pensions Act 1990.As the Deputy may be aware, the CIÉ Group is actively engaged in introducing changes to the schemes aimed at rectifying the significant deficit in order to meet the statutory Minimum Funding Standard required by the Pensions Authority. The changes also aim to sustain the pension schemes into the long-term.In relation to CIE's Regular Wages Scheme (RWS), I signed three Statutory Instruments related to the RWS on 6th July 2022, with an operative date of 18th July 2022. In regards to the 1951 Scheme, CIÉ has prepared and submitted a draft SI to give effect to Labour Court recommendations for the 1951 Scheme, as passed by ballot of scheme trade union members in May 2021. This is being considered by my Department in conjunction with NewERA. The deputies may also be aware that the rules governing the 1951 scheme are currently subject to ongoing legal proceedings before the Commercial Court. The Hearing commenced on 24 May 2022 for 4 days and the outcome from the Hearing is expected in the coming months.
303. Deputy Catherine Murphy asked the Minister for Transport if full catering facilities will resume on the Dublin to Sligo train service before the end of Q3, 2023. [14038/23]
View answerAs the Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport.
The issue raised by the Deputy regarding the status of catering services on board Iarnród Éireann Dublin to Sligo rail services is an operational matter for Iarnród Éireann, and I have therefore forwarded the Deputy's question to the company for direct reply.
Additionally, I understand that many of the stations on the Intercity network have existing retail / catering facilities available for customers, and Iarnród Éireann have advised that they will work with CIÉ Property in the interim period to further enhance, where possible, station-based retail and catering options for customers while also working towards the resumption of on-board catering as soon as possible.
304. Deputy Michael Healy-Rae asked the Minister for Finance if he has plans to review and change the structure of the taxation system (details supplied). [12238/23]
View answerThe Government is acutely aware of the difficulties in the housing market at present. The Minister for Housing, Local Government and Heritage has primary responsibility for housing policy. As part of the Housing for All action plan update published last November, I understand that his Department will undertake a review of the private rental sector. I expect that this review will take into account the significant regulatory changes over the past several years and will ensure that our housing system provides an efficient, affordable, safe and secure framework for both landlords and tenants.
The exiting of small landlords from the private rental sector is a consequence of multiple factors. A changing regulatory environment which has been necessary to ensure a fair and effective residential rental sector that balances tenants' rights and landlords' responsibilities has resulted in a challenging compliance framework for some. The recent rise in house prices has also prompted some landlords to sell their rental properties. Fears of legitimate access to their properties without encumbrance arising future policy decisions have been cited by others.
In relation to landlords subject to income tax, rental income is part of the total taxable income of the landlord. Individual landlords may be subject to income tax at their marginal rate of tax in addition to which USC and PRSI will also apply.
I would make the point that there is already a range of tax-based measures in place to support private landlords. These measures include 100% mortgage interest relief, the new-retro-fitting allowance introduced in Finance Act 2022 and a number of other deductible expenses. For example, owners of rental properties are entitled to claim deductions of up to €10,000 against rental income from that premises for various expenses incurred prior to it being first let after a six-month period of non-occupancy.
As the Deputy will be aware, decisions regarding tax incentives and reliefs are normally made in the context of the annual Budget and Finance Bill process. Such decisions must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines. Tax reliefs, no matter how worthwhile in themselves, may serve to narrow the tax base and can make general reform of the tax system that much more difficult.
With that said, my Department continues to monitor all aspects of the property market, including the number of landlords in the rental sector, and I will continue to work with my colleagues in Government to ensure that any further interventions in the housing market are appropriately calibrated, represent the best use of scarce public resources and boost the supply of housing in both the public and private sectors.
305. Deputy Peadar Tóibín asked the Minister for Finance the number of times funding was moved across budget lines within his Department in a process known as virement; the name and purpose of the fund the money was taken from; the name and purpose of the fund the money was transferred to; the dates upon which he approved of such transfers, since he took office; if the Department of Public Expenditure was consulted prior to the transfer; and if he will make a statement on the matter. [12268/23]
View answerWork is ongoing on the 2022 Appropriation Account for Vote 7 The Department of Finance and as a result final figures are not yet confirmed.
Final virement sanction has not been obtained from the Department of Public Expenditure NDP and Reform as my Department works towards completing the account. However, my Department notified DPENDPR in September that virement may be required on a number of the administrative subheads and sought provisional sanction to do so.
At all times my Department complies with Section C of the Public Financial Procedures and ensures the virement is sought as part of the work on the account and signals a requirement for provisional sanction where required.
306. Deputy Michael Healy-Rae asked the Minister for Finance if an exemption will be made for a category of persons in relation to the zoning tax (details supplied); and if he will make a statement on the matter. [12313/23]
View answerFinance Act 2021 introduced Part 22A Residential Zoned Land Tax (RZLT) into the Taxes Consolidation Act 1997. The RZLT is designed to prompt residential development by landowners of land that is zoned for residential or mixed-use (including residential) purposes and that is serviced.
RZLT is an annual tax, calculated at a rate of 3% of the market value of the land within its scope. The tax will be due and payable from 2024 onwards in respect of land which fell within the scope of the tax on or before 1 January 2022. Where land is zoned or serviced after 1 January 2022, the tax will be first due in the third year after the year in which it comes within scope.
It is important to note that, to come within the scope of RZLT, farmland must be both zoned for residential use and serviced. Farmland that is zoned for residential use, but which is not currently serviced, is not within the scope of the tax and will only come within the scope of the tax should the land become serviced at some point in the future.
Land will be considered to be serviced for the purposes of the tax where it is reasonable to consider that the land has access to, or may be connected to, public infrastructure and facilities, including roads and footpaths, public lighting, foul sewer drainage, surface water drainage and water supply, necessary for dwellings to be developed on the land and with sufficient service capacity available for such development.
A draft RZLT map was published by local authorities on 1 November 2022. The purpose of the draft map was to allow landowners, including farmers, to see if their land is within the scope of the tax. If a landowner sees that their land is included on the draft map and believes that it should not be, they had the opportunity to make a submission to the local authority by 1 January 2023 seeking to have the map updated and their land removed from the map, or they could have sought to have their land rezoned.
The local authorities are currently considering the submissions received and will make a written determination on whether the land should stay on the map or be removed from it by 1 April 2023. If a landowner has requested a rezoning of their land, the local authority will consider the request and, if appropriate, they will commence a variation procedure to alter the zoning of the land. This variation procedure, and the local authority’s decision on whether or not to commence one, is part of the normal zoning process. If the landowner disagrees with the determination, they can appeal to An Bord Pleanála.
Agricultural land which is zoned solely or primarily for residential use meets the criteria set out within the legislation and therefore falls within the scope of the tax. These zonings are considered to reflect the housing need set out within the core strategy for the relevant local authority area and landowners within such zonings may fall within the scope of the tax, in the interests of ensuring an appropriate supply of housing on zoned lands.
It should also be noted that, while residential properties may appear on the local authority RZLT maps, residential property which is subject to LPT is exempt from RZLT. Further information regarding RZLT maps and related submission/variation processes are available on each local authority website, or at www.gov.ie/rzlt.
Furthermore, Finance Bill 2022 introduced an exemption for land that is within the scope of the tax but is subject to a contract that precludes the landowner from developing it. For the exemption to apply, the contract must have been entered into prior to 1 January 2022, i.e., prior to the introduction of RZLT. For example, where a farmer leased land prior to 1 January 2022 and the requisite conditions are met, the farmer may claim an exemption from the tax for the period of the lease.
307. Deputy Paul Murphy asked the Minister for Finance if he will instruct the Irish Credit Bureau to close a loan account (details supplied). [12325/23]
View answerThe Irish Credit Bureau (ICB) was a privately owned and operated credit reference entity that ceased operations in October 2021. While neither I nor the Central Bank of Ireland had any responsibility for the operation of the ICB, I understand that it deleted its records after it stopped providing a service.
However, the Deputy will be aware that the Credit Reporting Act 2013 (the Act) provided for the establishment of a Central Credit Register (CCR) by the Central Bank. Under the Act, lenders are obliged to submit information to the CCR on loans for €500 or more. On 30th June 2017, lenders began submitting information on active consumer loans such as credit cards, personal loans, overdrafts and mortgages. This was followed in March 2018 by business loans, moneylender loans and local authorities. Hire purchase, PCP and similar type products were included in June 2019. Lenders are obliged to submit information to the CCR that is accurate, complete and up to date.
The Central Bank advises that when a loan has been closed (i.e. repaid, refinanced or written-off) the lender must report this information at the next CCR reporting date. Once a loan is closed, the lender is not required to report any further information. Information is then retained for a period of five years, after which it will be deleted from the CCR in line with the Central Bank's retention policy.
The Act provides four important rights to borrowers:
- The right to a free report at any time, free of charge (subject to fair usage);
- The right to place an explanatory statement of up to 200 words on their credit report;
- The right to request an amendment to information if the borrower believes that information is incorrect, incomplete or not up to date;
- The right to place a Notice of Suspected Impersonation on their credit report.
If the individual wishes to exercise any of these rights, they may do so online at www.centralcreditregister.ie.
It is important to note that the CCR does not provide a credit rating or credit score. Also the CCR does not approve or sanction loan applications; subject to the consumer protection requirements associated with the provision of credit, decisions on applications for credit are a business matter for individual lenders.
308. Deputy Matt Shanahan asked the Minister for Finance the number of help-to-buy scheme mortgages drawn down in Waterford and nationally in two years, in tabular form; and if he will make a statement on the matter. [12355/23]
View answerThe Help to Buy (HTB) incentive 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 (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation. The incentive is accessed via an online-only application process which has been available since 3rd January 2017, currently covering the period 19 July 2016 to 31 December 2024.
I am advised by Revenue that applications for HTB may be made on a provisional basis as first-time buyers seek to clarify their entitlements in advance of commencing the purchase of a property. An application will only progress to the “claim” stage if and when the applicant decides to purchase a property that is eligible for the scheme. First-time buyers can submit their claim once a contract is signed for the purchase of a property. In the case of self-builds, the claim can be submitted after the draw-down of the first tranche of the mortgage.
When a claim is submitted, the information provided must be verified by the qualifying contractor or the solicitor acting on behalf of the self-builder. Claims cannot be approved and paid until the qualifying contractor or solicitor has verified the claim.
Revenue have advised that the table below provides a county breakdown of the number of approved claims for the years 2021 and 2022, based on the date of the commencement of the claim stage:
|
2021 |
2022 |
|
|
Carlow |
105 |
61 |
|
Cavan |
87 |
69 |
|
Clare |
166 |
94 |
|
Cork |
1,104 |
958 |
|
Donegal |
148 |
175 |
|
Dublin |
1,110 |
1,057 |
|
Galway |
417 |
326 |
|
Kerry |
104 |
115 |
|
Kildare |
990 |
1,029 |
|
Kilkenny |
122 |
118 |
|
Laois |
222 |
144 |
|
Leitrim |
29 |
18 |
|
Limerick |
256 |
176 |
|
Longford |
29 |
25 |
|
Louth |
342 |
312 |
|
Mayo |
160 |
166 |
|
Meath |
867 |
633 |
|
Monaghan |
100 |
81 |
|
Offaly |
135 |
153 |
|
Roscommon |
80 |
62 |
|
Sligo |
74 |
62 |
|
Tipperary |
133 |
112 |
|
Waterford |
192 |
162 |
|
Westmeath |
95 |
101 |
|
Wexford |
296 |
285 |
|
Wicklow |
310 |
249 |
|
Total |
7,673 |
6,743 |
The Deputy may wish to note that further annual statistical information in relation to the HTB scheme is available on the Revenue website at:www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/htb/htb-yearly.aspx
In addition to this, monthly statistics are also available and published online at: www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/htb/htb-monthly.aspx
309. Deputy Paul Murphy asked the Minister for Finance the reason a list of sporting groups receiving tax exemption under Section 235 of the Taxes Consolidation Act 1997 is no longer available to view on the Revenue Commissioners' website (details supplied); and if, in the interests of transparency, he will provide a copy of the list [12546/23]
View answerI am advised by Revenue that, in addition to a wide range of general information on tax matters, specific tax information where authorised and required by legislation, is published on Revenue’s website, www.revenue.ie. All information published by Revenue is regularly reviewed to check that the information is up to date; that it is clear and understandable and to ensure it complies with its statutory obligations.
Revenue is mindful of the obligations imposed on it by statute, in particular taxpayer confidentiality obligations under sections 851A and 851B of the Taxes Consolidation Act 1997. These confidentiality obligations apply equally to all taxpayers and are in place to safeguard taxpayer information.
In the absence of a clear statutory provision authorising or requiring the publication of the names or addresses of bodies which have received an exemption under section 235 of the Taxes Consolidation Act 1997, I am advised by Revenue that it is not in a position to publish a list containing such information, however, Revenue is continuing to carefully review its position regarding publication of such information in the future.
Exempted bodies are, of course, entitled to make the public aware of their tax status, and enquiries should be made directly, with bodies concerned. It is also the case that most of the sporting bodies operating in Ireland are eligible for the tax exemption.
310. Deputy Sean Sherlock asked the Minister for Finance if he is informed on the type of loans taken out by all customers of all financial institutions in the State; if so, if they are segmented by health needs, personal loan, car loan, mortgage, home improvement and so on; and if he will make a statement on the matter. [12585/23]
View answerOn the 29 November 2022, my Department published the report into the Retail Banking Review. The Review examined the evolution of the retail banking sector and the current landscape and it identified a range of issues and made recommendations to address them.
In section 2 of the report, information was provided on the key product offerings, including credit products, by category of firm as follows:-
Key Product offering by category of firm as at 31 December 2021
|
Category of firm |
Product |
€bn |
|
Traditional banks |
Deposits |
228 |
|
Loans |
176 |
|
|
Of which to Irish residents |
137 |
|
|
- Mortgages |
90 |
|
|
- SME |
18 |
|
|
- Consumer |
8 |
|
|
Non-banks |
Mortgages |
22 |
|
SME |
4 |
|
|
Credit Unions |
Deposits |
17 |
|
Loans - 90% of which is consumer credit |
5 |
311. Deputy Johnny Guirke asked the Minister for Finance if any projects under his remit are on hold due to Capital Funding pressures; if he will indicate the projects, in tabular form; and if he will make a statement on the matter. [12626/23]
View answerI can confirm that there are no projects under my remit on hold due to Capital funding pressures.
312. Deputy Michael Lowry asked the Minister for Finance if he is aware of the plight of motorcycling sport clubs in the Republic as a result of massive insurance premiums, and the current prospect of the governing bodies of such clubs being unable to secure an insurance quote to run events (details supplied); the steps being taken to ensure that such motorcycling sport clubs will be able to obtain an appropriate insurance quote that would allow for the running of any road, off-road, and circuit racing on the island of Ireland in 2023; and if he will make a statement on the matter. [12739/23]
View answerGovernment is aware that a small number of activity-related sectors are currently facing difficulty in terms of affordability and availability of insurance. We have therefore prioritised the implementation of the Action Plan for Insurance Reform, which aims to improve the cost and availability of insurance for all groups, including sporting organisations. The latest Implementation Report, published in November 2022, indicates that significant progress has been made, with approximately 90 percent of the actions either delivered or initiated.
Officials from my Department have been in contact with a wide range of stakeholders in the motorcycle racing sector to gain an insight into the scale of the issue you raise. This has also been raised with Insurance Ireland. I understand that while events such as motorcycle test and track days continue to operate, motorcycle racing is facing difficulties with insurance availability.
It is a feature of the Irish insurance market that some smaller sectors, including motorcycle racing, have traditionally been dependent on specialist UK providers passporting into Ireland. As a consequence of the UK’s decision to leave the EU, this practice has now ended and it has become more expensive and difficult for niche underwriters from the UK to provide their products here. This has been exacerbated by the small size of some of these sectors, meaning that just one or two large or catastrophic claims can negatively impact insurance capacity for an extended period of time.
At the same time however, work is ongoing to investigate insurance in the sporting sector as a whole, by the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media in conjunction with Sports Ireland. Accordingly, National Governing Bodies have been invited to contribute to this exercise. Officials from the Department of Finance remain in contact with their counterparts and all queries regarding this study should be directed to the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media.
In conclusion, I wish to reassure you that it is the my intention to continue to work with my Government colleagues to ensure that the implementation of the Action Plan will continue to have a positive impact on the affordability and availability of insurance for all groups, including sporting clubs and organisations.
313. Deputy Neasa Hourigan asked the Minister for Finance his views on the decline in both the total number of individuals subject to the high-income individuals’ restriction and the estimated additional income tax due to the restriction in each of the each years since 2010; if he believes that the total number of individuals subject to the restriction should have been increasing in a growing economy; and if he will make a statement on the matter. [12753/23]
View answerThe restriction of reliefs' measure for individuals on high incomes, who make significant use of certain specified tax reliefs, was announced in Budget 2006 and came into effect from 1 January 2007.
The intention of the restriction is to seek to improve the balance between promoting tax equity in relation to those on high incomes while at the same time maintaining the incentive effect of the various tax reliefs introduced to achieve a particular public good.
The measure limits the use of certain tax reliefs and exemptions by those on high incomes. Prior to the introduction of this restriction, such individuals, by means of the cumulative use of various tax incentive reliefs, had been able to reduce their tax liability to very low levels. The restriction works by limiting the tot al amount of specified reliefs that a high income individual can use to reduce his or her tax liability in any one tax year.
The restriction, as introduced, ensured that individuals with adjusted income exceeding €500,000 paid at least an effective rate of tax of approximately 20% on that income. Where adjusted income was between €250,000 and €500,000, a tapering system ensured that there was a graduated introduction of the restriction, with the effective rate of tax increasing towards 20% as adjusted income increased towards €500,000.
In Budget 2010, changes to the restriction from the 2010 tax year were announced. Those individuals with adjusted income exceeding €400,000, as a result, now pay at least an effective income tax rate of approximately 30% on that income, while individuals now become subject to the restriction and the associated taper, where adjusted income is €125,000 or greater and where they claim €80,000 or more in specified reliefs.
In Finance Act 2011, the Universal Social Charge was introduced. As the USC is charged on an individual's aggregate income from all sources, the amount payable by an individual is not affected by the high earners' restriction. To examine the total amount of income tax paid, the USC is included.
The continued reduction in the numbers of those subject to the restriction is due to the elimination of a range of specified tax reliefs that are available to individuals. This has reduced the overall amount of income being sheltered from tax under these reliefs and consequently falling under the restriction each year. The decline in additional income generated by the restriction over recent years is an indicator of its successful operation.
The following table sets out statistics relating to the period between 2010 and 2019 (the most recent year for which data are available):
|
YEAR |
TOTAL NUMBER OF INDIVIDUALS |
ESTIMATED ADDITIONAL INCOME TAX €M |
|
2019 |
303 |
23.4 |
|
2018 |
358 |
26.4 |
|
2017 |
439 |
33.1 |
|
2016 |
521 |
38.51 |
|
2015 |
625 |
47.21 |
|
2014 |
779 |
54.73 |
|
2013 |
904 |
60.43 |
|
2012 |
1,050 |
63.21 |
|
2011 |
1,143 |
63.6 |
|
2010 |
1,544 |
80.18 |
Revenue's annual reports on the measure, including the report published in 2022 in respect of 2019 are available at the following link:
www.revenue.ie/en/corporate/information-about-revenue/research/statistical-reports/high-income-earners-reports.aspx.
314. Deputy Holly Cairns asked the Minister for Finance the steps he is taking to ensure that the fuel grant element of the disabled drivers' and passengers scheme facilitates disabled driver charging their electric car; and if he will make a statement on the matter. [12785/23]
View answerThe Disabled Drivers & Disabled Passengers Scheme (DDS) provides relief from VRT and VAT on an adapted car, as well as an exemption from motor tax and an annual fuel grant.
Under DDS provisions, the reliefs from VRT and VAT are generous in nature amounting to up to €10,000, €16,000 or €22,000, depending on the level of adaption required for the vehicle. There is no differentiation between electric and other vehicles in terms of available VRT/VAT relief.
Section 135C(3)(b) of the Finance Act 1992 separately provides that a Category A series production electric vehicle can avail of relief of up to €5,000 on the VRT due. Thus the amount of VRT due or paid on an electric vehicle may be lower than the maximum DDS relief permitted. In such cases the VRT relief provided through the DDS will equate to the actual VRT due or paid. VAT refunds are provided regardless of the type of vehicle.
DDS Scheme recipients with a petrol or diesel vehicle may claim payment of a fuel grant. The fuel grant covers the excise tax elements of petrol, diesel and liquefied petroleum gas (LPG). It is based on a per litre rate in respect of the mineral oil taxes applying to these products. An annual maximum of 2,730 litres applies in respect of a driver or passenger, and 4,100 litres in respect of an organisation.
As electricity supplied for household use is not subject to excise tax, there is no provision under the DDS to cover electricity used to recharge electric vehicles.
315. Deputy Holly Cairns asked the Minister for Finance if he will ensure that the rent-a-room scheme is extended to allow households that have an available bedroom to rent it to an asylum seeker. [12786/23]
View answerI am advised by Revenue that the scenario outlined in the Deputy’s Question currently qualifies under the rent-a-room scheme.Sums arising to an individual in respect of the letting for residential purposes of a room or rooms in an individual’s “sole or main residence”, including the provision of meals, cleaning, laundry or other services supplied in connection with the letting, may be exempt from income tax where the conditions set out in section 216A Taxes Consolidation Act 1997 are met. To qualify for rent-a-room relief, the total payment for the letting must be below the annual limit, which is€14,000. In establishing whether the income exceeds the limit, the gross amount is taken into account and no deduction is allowed for any expenses that have been incurred in connection with obtaining the income. The relief does not apply to short term lettings of 28 or fewer days, except in certain defined circumstances (lettings to students, disabled individuals, and “digs” for a minimum of four consecutive days per week for at least four consecutive weeks). There are also restrictions relating to lettings to immediate family members and lettings paid for by the individual’s employer.Further information on rent-a-room relief is available from the Revenue website at:www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/index.aspx .
316. Deputy Joe Flaherty asked the Minister for Finance if, following the Advisory Group on the Provision of Support including Accommodation to Persons in the International Protection Process, the rent-a-room scheme can be expanded to allow households to rent the room to an asylum seeker. [12884/23]
View answerI am advised by Revenue that the scenario outlined in the Deputy’s Question currently qualifies under the Rent-a-Room scheme.Sums arising to an individual in respect of the letting for residential purposes of a room or rooms in their “sole or main residence”, including the provision of meals, cleaning, laundry or other services supplied in connection with the letting, may be exempt from income tax, USC and PRSI on that rental income where the conditions set out in section 216A Taxes Consolidation Act 1997 are met.To qualify for Rent-a-Room relief, the total payment for the letting must be below the annual limit, which is €14,000. In establishing whether the income exceeds the limit, the gross amount is taken into account and no deduction is allowed for any expenses that have been incurred in connection with obtaining the income.
The relief does not apply to short term lettings of 28 or fewer days, except in certain defined circumstances (lettings to students, disabled individuals, and “digs” for a minimum of four consecutive days per week for at least four consecutive weeks). There are also restrictions relating to lettings to immediate family members and lettings paid for by the individual’s employer.
Although the Rent-a-Room relief applies automatically, the scheme does not remove the obligation to include this rental income on a tax return. An individual letting a room in their home in under the Rent-a-Room scheme and who is required to submit an annual return of income to Revenue must enter the amount of exempt rental income in the ‘Exempt Income’ section of their return.Further information on Rent-a-Room relief is available from the Revenue website at:www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/index.aspx .
317. Deputy Denis Naughten asked the Minister for Finance the progress made by his Department in respect of targets and goals set out in sustainable development goals of the 2030 United Nations Agenda for Sustainable Development under the policy remit of his Department; and if these targets and goals will be met by their respective deadlines. [12902/23]
View answerI would like to thank the Deputy for his question and the opportunity it affords me to outline Ireland’s approach to the SDGs and that of my department.
The 2030 Agenda for Sustainable Development and the 17 Sustainable Development Goals (SDGs) is a significant and ambitious framework. A whole-of-Government approach to its implementation has been taken in Ireland.
Ireland’s Second National Implementation Plan for the Sustainable Development Goals, 2022 – 2024 was published in October 2022. The Plan was developed by the Department of the Environment, Climate and Communications in collaboration with all Government Departments, key stakeholders, and based on input from two public consultation processes. A key objective of the Plan is to achieve greater policy Coherence for Sustainable Development (PCSD) with the aim of accelerating achievement of the Sustainable Development Goals (SDGs) at all levels of Government.
The Plan is supplemented by two supporting documents: an SDG policy map which identifies the lead Departments and relevant national policies for each of the 169 SDG targets; and a Policy Update document which provides policy updates for each of these targets. These documents are available at www.gov.ie/sdgs
The Central Statistics Office, in collaboration with all Government Departments, has prepared a series of statistical publications which monitor and report on how Ireland is progressing towards meeting its targets under the 17 SDGs. Reports are available for SDGs 1 – 16 and can be found on the central statistics website.
Ireland will present its second Voluntary National Review (VNR) to the United Nations High-Level Political Forum in July 2023. The VNR report will comprise a high-level data section and a more detailed appendix reporting on progress in respect of achieving the SDGs and related targets.
The whole-of-Government approach to implementation of the SDGs means all Ministers are responsible for implementing the SDGs related to their functions. The Department of Finance has been assigned responsibility for a number of goals and sub-targets, spanning from promoting inclusive economic growth to building partnerships for sustainable development.
As the Deputy will note, the targets assigned to the Department of Finance as either lead or stakeholder and my Department has published these obligations online at www.gov.ie/en/publication/032fa-sustainable-development-goals/ .
In line with Action 4 of the first National Implementation Plan my Department’s Statement of Strategy 2021-2023 makes specific reference to our SDG targets (available at the following link: assets.gov.ie/122270/1d8bd1ca-295f-42b2-9998-1c83ae04e716.pdf The Statement plays an important role in the delivery of policy objectives insofar as it provides a framework to translate such objectives into policies and operational business plans designed to achieve implementation. My Department's obligations in respect of the achievement of SDGs have therefore been embedded within the fabric of how it does its business. It is my hope that these steps towards enhanced policy coherence, alignment and mainstreaming of SDGs into policy areas will contribute to an accelerated progression towards SDG implementation.
Moving forward, I can assure the Deputy of my Department’s continued focus and commitment to the whole of Government approach in the achievement of the Sustainable Development Goals.
318. Deputy Ciarán Cannon asked the Minister for Finance the value to the Exchequer of the amount of VAT collected annually under Section 9 of Annex III of the EU VAT Directive. [12918/23]
View answerI am informed by Revenue that a breakdown of net tax receipts, including VAT, by economic sector is available on the Revenue website at: revenue.ie/en/corporate/information-about-revenue/statistics/receipts/receipts-sector.aspx
VAT registered persons are associated with a particular economic sector using the NACE classification. However, writers, composers and performing artists are included under the category of “Other Activities and Sectors”. As this category covers a range of miscellaneous activities, Revenue does not have data from which to provide the specific information as requested by the Deputy
319. Deputy Thomas Pringle asked the Minister for Finance if he will consider releasing funds from the national reserve fund to alleviate the capital funding pressures which are now delaying NDP delivery; and if he will make a statement on the matter. [12956/23]
View answerMatters relating to all aspects of the implementation of the National Development Plan are a matter for my colleague Mr. Pascal Donohoe TD, Minister for Public Expenditure, National Development Plan Delivery and Reform.
Following Dáil approval to transfer €2 billion in 2022 and €4 billion in 2023, which happened in November 2022 and February 2023, respectively, the National Reserve Fund currently has a balance of €6 billion. Any future transfers to the Fund or drawdowns from it will be decided as part of annual budgetary processes in the years concerned.
Section 9 (2) of the National Surplus (Reserve Fund for Exceptional Contingencies) Act 2019 which is the statutory basis of the National Reserve Fund sets out the circumstances under which the Fund can be drawn down as being to:
a. remedy or mitigate the occurrence in the State of exceptional circumstances;
b. prevent potential serious damage to the financial system in the State and ensure the continued stability of that system; or
c. support major structural reforms which have direct long-term positive budgetary effects within the meaning of Article 5 of Council Regulation (EC) No. 1466 of 1997 as amended by Regulation (EU) No. 1175 of 2011.
320. Deputy Paul Donnelly asked the Minister for Finance the reason the VAT rate for dog grooming is at 23%, while the hair dressing industry is taxed at 9%; and if he will make a statement on the matter. [13029/23]
View answerI am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the Directive.
The provision of dog grooming services is not included in Annex III and as such is subject to the standard rate of VAT, currently 23%. There is no discretion under the Directive for Ireland to apply a reduced rate of VAT to this service.
As hairdressing is included in Annex III of the VAT Directive a reduced rate of VAT may be applied to it.
The Deputy may be interested to know that by way of special derogation from the general rule, Ireland is permitted to continue its long-standing practice of applying a reduced rate, currently 13.5%, to the supply of services by a veterinary surgeon in the course of their profession, but there are strict restrictions on this derogation, including that the rate cannot be reduced below 12%. However, where a veterinary surgeon carries out a dog grooming services as part of the veterinary procedure, such as treating an illness or disease, the dog grooming is considered part of the veterinary procedure and the entire procedure is liable to VAT at the reduced rate. Where a veterinary surgeon provides a dog grooming service as a supply that is distinct from a veterinary procedure the service is liable to VAT at the standard rate of 23%.
321. Deputy Michael Creed asked the Minister for Finance if he will clarify the situation regarding excise duties and taxes and levies presently collected from an alternative fuel (details supplied). [13070/23]
View answerThe application of excise duty on fuel in Ireland is governed by European Union law as set out in Directive 2003/96/EC, commonly known as the Energy Tax Directive (ETD). The ETD prescribes minimum tax rates for fuel with which all Member States must comply. ETD provisions on mineral oils are transposed into national law in Finance Act 1999 (as amended). Finance Act 1999 provides for the application of excise duty in the form of Mineral Oil Tax (MOT) to liquid fuels used for motor or heating purposes.
MOT is comprised of a non-carbon component and a carbon component with the carbon component being commonly referred to as carbon tax. The non-carbon component of MOT is often referred to as “excise”, “fuel excise”, “fuel tax” or “fuel duty” but it is important to note that both components are part of MOT which is an excise duty. MOT law specifies rates of taxation for certain fuels and uses. Standard rates apply to fuels used for propellant purposes including in road vehicles. Reduced rates apply to fuels used for all other purposes, such as heating. Full details on current MOT rates are published on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/energy-excise-duty-rates.pdf.
The Deputy has asked about taxation of an alternative fuel, namely Hydrotreated Vegetable Oil (HVO). Where a liquid that is not specified in MOT law is used as a motor or heating fuel, “substitute fuel” rates apply. A substitute fuel used in place of auto-diesel attracts the auto-diesel rate of MOT and petrol substitutes are taxed at MOT rate applicable to petrol. Substitute fuels used for reduced rate purposes, attract the Marked Gas Oil rate of MOT. Where a substitute fuel meets the criteria of being produced entirely from biomass it is regarded as a biofuel for MOT purposes. The State’s MOT law - as governed by the ETD - relieves biofuels from the carbon component of MOT. This relief is provided for in section 100(5) of Finance Act 1999 which has been in place since 2012. The table below summarises current MOT rates applicable to substitute fuels. It also details the effective MOT rate on qualifying biofuels, net of the carbon tax relief.
MOT Rates Applicable To Substitute Fuels per 1000 Litres
|
Substitute fuel use |
Non-carbon component of MOT |
Carbon component of MOT |
Total MOT(i.e. Non-carbon plus carbon) |
Effective MOT on biofuel (i.e. Non-carbon rate only) |
|
Instead of petrol |
€371.11 |
€112.23 |
€483.34 |
€371.11 |
|
Instead of auto-diesel |
€295.64 |
€129.81 |
€425.45 |
€295.64 |
|
Non-propellant purposes such as heating |
€00.00 |
€111.14 |
€111.14 |
€00.00 |
As the rates above indicate, biofuels such as HVO benefit from significantly lower MOT rates due to the carbon tax relief.
In relation to Value-Added Tax (VAT), the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the Directive. Motor fuels such as petrol including bio-ethanol petrol blends and auto-diesel are not included in the categories of goods and services on which the EU Directive allows a lower rate of VAT or an exemption to be applied, and so they are liable to VAT at the standard rate, currently 23%. Biofuel and non-food vegetable oils, such as HVO, used to fuel vehicles also attract the standard rate of VAT. HVO used as heating fuel is liable for the reduced VAT rate of 13.5%.
I am informed by my colleague, the Minister for Environment, Climate and Communication, that HVO is subject to the Renewable Transport Fuel Levy, provided for by section 44N of the National Oil Reserves Agency Act 2007 (as amended). The current rate of the levy is €1 per 1000 litres of relevant disposals of renewable transport fuels, reduced from €20 per 1000 litres in 2020. The reduced rate was applied to incentivise biofuel use and to help to bridge any cost differentials between biofuels and fossil fuels. The Renewable Transport Fuel Levy is collected by the National Oil Reserves Agency and is used to offset costs involved in the administration by the Agency of the Renewable Transport Fuel Obligation Scheme.
