Written Answers Nos. 210-222
214. Deputy Emer Higgins asked the Minister for Finance if he will provide a breakdown of the number of seizures of cannabinoids (cannabis edibles) products by the Revenue Commissioners for each of the years 2018 to 2022 and to date in 2023, in tabular form; the estimated street value or worth of those seizures; and if he will make a statement on the matter. [25751/23]
View answerRevenue has primary responsibility for the prevention, detection, interception and seizure of controlled drugs intended to be smuggled or illegally imported into, or exported from, the State. I am advised by Revenue that controlled drugs incorporate drug infused sweets, including cannabis and tetrahydrocannabinol (THC) infused jellies. Cannabis/THC jellies are edible products that contain synthetic THC, being the primary psychoactive compound found in the cannabis plant.
I am further advised by Revenue that its drugs interdiction strategy supports the Governments strategic approach to the misuse of drugs under the National Drugs Strategy 2017-2025.
A breakdown of seizures of cannabinoid products and the estimated street value of these seizures from 2018 to 2023 year to date inclusive are provided below in tabular form:
|
Year |
No. of Seizures |
Total Value of Seizures(€) |
|
2018 |
19 |
17,485 |
|
2019 |
103 |
23,944 |
|
2020 |
446 |
64,860 |
|
2021 |
221 |
69,488 |
|
2022 |
112 |
54,334 |
|
2023 YTD |
87 |
34,028 |
This Government is acutely aware of the sustained and significant damage that the importation of illicit drugs has on communities across the country and are particularly aware of the dangers posed, particularly to children, of cannabis edibles. The drug seizures outlined above were detected at key points of entry into the State, including ports, airports, postal and parcel courier hubs. I am advised by Revenue that it deploys enforcement personnel on a risk assessment basis at airports, ports and mail hubs/postal depots where goods enter the State with a view to optimising the impact of its efforts to address all aspects of illegal importations.
215. Deputy Holly Cairns asked the Minister for Finance his views on extending the small cider producer excise relief scheme to include mead as a premium Irish product; and if he will make a statement on the matter. [25807/23]
View answerThe Finance Act 2022 introduced a 50% excise relief to micro producers of 'cider and perry' as defined in section 73(1) of Finance Act 2003. The scope of the relief applies specifically to cider and perry exceeding 2.8% vol. but not exceeding 8.5% vol. This relief is available on up to 8,000 hectolitres of cider and perry produced by microproducers with an annual production threshold of up to 10,000 hectolitres. On a typical pint of cider or perry, the value of the relief works out at approximately 27c per pint.
While the EU Directive now allows for the extension of the relief to other fermented beverages, the relief scheme has been restricted to cider and perry at commencement this year. This is principally due to the administrative challenges associated with a broader relief as well as a concern around its application for the production of alcopops. The diversity of products in the applicable CN codes and the technical difficulties arising out of monitoring the products, are such that it was considered prudent that the relief be restricted to cider and perry at the outset.
The scope of the relief can be reviewed in the future once it is firmly established. As the relief scheme is only in operation for a number of months, there are no current plans to extend scope.
216. Deputy Marc Ó Cathasaigh asked the Minister for Finance the take-up, by county, of the deduction for retrofitting expenditure incentive for small-scale landlords who undertake retrofitting work while the tenant remains in situ, since its introduction; and if he will make a statement on the matter. [25880/23]
View answerA new tax incentive was introduced in Finance Act 2022 for small-scale landlords who undertake retrofitting works while the tenant remains in situ, which has the aim of attracting and retaining small-scale landlords in the private rental sector. This measure is provided for in section 97B of the Taxes Consolidation Act 1997.
The provision is intended to provide for a deduction of certain retrofitting expenses incurred by landlords on rented residential properties in calculating their Case V rental profits. The expenses that qualify for deduction are those in respect of which the landlord has received a home energy grant from the Sustainable Energy Authority of Ireland (SEAI). It should be noted that the expenses incurred must be in respect of the period 1 January 2023 to 31 December 2025. Furthermore, the maximum amount of tax deduction that can be claimed is the lesser of the qualifying expenditure incurred or €10,000 and a landlord is only entitled to claim the relief on a maximum of two of his/her rental properties.
The deduction operates in the same manner as any other permitted rental deductions. However, unlike other rental expenses, it will not be deducted for the year in which it is incurred. Instead, the deduction will be claimed against the rental income of the year following that in which the expense was incurred. For example, expenses incurred on retrofitting works in 2023 should be included in calculating rental profits for 2024 and may be claimed by a landlord on their income tax return for that year. As such, relief under this measure will be claimed for the first time in 2025, in respect of the 2024 tax year.
Income tax returns for 2024 are not due until Q4 2025, and as such Revenue has advised me that it is not currently possible to provide information on the take-up of the deduction for retrofitting expenditure.
217. Deputy Jim O'Callaghan asked the Minister for Finance the number of renters who have claimed the rent tax credit this year, by county, in tabular form. [25912/23]
View answerThe Rent Tax Credit, as provided for in section 473B of the Taxes Consolidation Act 1997 (TCA 1997), was introduced by Finance Act 2022 and may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.
Claims in respect of the 2022 year of assessment can be made by PAYE taxpayers by submitting an Income Tax return for that year. For claims relating to 2023, PAYE taxpayers have the option of claiming the rent tax credit due to them either as rent is incurred or at the end of the year through their Income Tax return.
The Rent Tax Credit statistics currently available refer only to claims by PAYE taxpayers for the 2022 tax year and the 2023 tax year to-date. Data on claims by self-assessed taxpayers is not yet available as these taxpayers’ returns are generally submitted later in the year. The statutory filing date for the 2022 tax return for self-assessed taxpayers is 31 October 2023.
Rent Tax Credit claims made are on a ‘taxpayer unit’ basis. A taxpayer unit is either an individual with any personal status who is singly assessed or a couple in a marriage or civil partnership who have elected for joint assessment.
Over 247,158 Rent Tax Credit claims have been made by almost 225,000 taxpayer units up to and including the 23 May 2023, consisting of:
(i) 193,283 taxpayer units that made claims for 2022 only,
(ii) 22,059 taxpayer units that made claims for both 2022 and 2023, and
(iii) 9,611 taxpayer units that made claims for 2023 only.
The number of taxpayer units that have claimed the Rent Tax Credit, by county, is presented below in tabular form.
|
County |
Number of Taxpayer Units Claiming |
|
Carlow |
1,936 |
|
Cavan |
1,695 |
|
Clare |
2,601 |
|
Cork |
24,664 |
|
Donegal |
2,637 |
|
Dublin |
102,583 |
|
Galway |
15,709 |
|
Kerry |
3,151 |
|
Kildare |
7,524 |
|
Kilkenny |
2,226 |
|
Laois |
1,641 |
|
Leitrim |
697 |
|
Limerick |
10,609 |
|
Longford |
1,223 |
|
Louth |
2,773 |
|
Mayo |
2,970 |
|
Meath |
3,796 |
|
Monaghan |
1,391 |
|
Offaly |
1,710 |
|
Roscommon |
1,383 |
|
Sligo |
2,489 |
|
Tipperary |
3,597 |
|
Waterford |
4,129 |
|
Westmeath |
3,088 |
|
Wexford |
3,296 |
|
Wicklow |
2,498 |
|
Not available currently |
12,937 |
|
Total |
224,953 |
218. Deputy Robert Troy asked the Minister for Finance if he will consider 100% mortgages based on a person’s proven track record of rental payments and the usual earning multiplier conditions, similar to the new offering approved in other countries (details supplied). [25929/23]
View answerThe Central Bank of Ireland, as part of its independent mandate to preserve and protect financial stability in Ireland, has statutory responsibility for the regulation of mortgage lending by banks and other Central Bank regulated mortgage lending institutions operating in Ireland. In line with this mandate it has introduced certain macroprudential measures for residential mortgage lending. These macro-prudential measures apply certain loan-to-value (LTV) and loan-to-income (LTI) restrictions to residential mortgage lending by financial institutions regulated by the Central Bank.
Following a comprehensive review, the Central Bank last October announced a number of targeted changes to the lending measures which came into effect from the start of 2023. For first time buyers (FTBs), the LTI limit was increased to 4 times the borrower’s income and the LTV limit was retained at 90% of the value of the residential property.
For second and subsequent buyers (SSBs) the maximum mortgage limits are 3.5 times the borrower’s income and 90% of the value of the residential property.
However, banks and other regulated lenders have, at their own discretion, a certain flexibility to provide a mortgage loan in excess of the specified regulatory limits and up to 15% of FTB lending can take place above these specified limits.
In addition, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 require lenders to assess the creditworthiness of the borrower and provide that mortgage credit should only be made available where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement.
This assessment generally takes into consideration rental payments being made by mortgage applicants when lenders are making their affordability assessment as part of regular underwriting process to assess borrowers’ ability to repay a mortgage.
Within this general regulatory framework, it is then a commercial matter for individual lenders to decide whether or not to provide a loan in any particular case, or how much credit to provide in any particular case, having regard to their own lending policies and underwriting criteria. Neither the Central Bank nor I have any function or role in such decision-making matters by credit institutions.
219. Deputy Brendan Griffin asked the Minister for Finance his views on rising insurance costs (details supplied); and if he will make a statement on the matter. [25945/23]
View answerI note that the question refers to the cost of insurance for a specific business. At the outset, it is important to note that neither I, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive).
Nevertheless, this Government is aware that certain business sectors are currently facing difficulty in terms of affordability and availability of insurance, and has therefore continued to prioritise the delivery of the Action Plan for Insurance Reform . The latest implementation report, published in November 2022, indicates that significant progress has been achieved, with the vast majority of actions now completed, and the remainder ongoing.
Key reforms include the introduction of the Personal Injuries Guidelines, with data from the Personal Injuries Assessment Board (PIAB) indicating that the overall average award has fallen by 38 per cent compared to awards made in 2020 under the Book of Quantum. Another key, complementary action is the Personal Injuries Resolution Board Act 2022 , which aims to increase the number of personal injury claims settled through the PIAB, thereby reducing the expense and time associated with personal injuries litigation. Further actions aimed at lowering costs include measures to reduce fraud, and legislation placing perjury on a statutory footing for the first time.
Minister of State Carroll MacNeill has met with the main insurers in the Irish market to set out the Government’s expectation that savings arising from this wide-ranging reform agenda will be reflected via reduced premiums, as well as increased availability of cover. In addition, the Office to Promote Competition in the Insurance Market is working closely with IDA Ireland to help leverage the ongoing reforms, with the objective of targeting new entrants to the Irish market, or persuading current incumbents to expand their risk appetite. In my engagement with industry, including its representative body Insurance Ireland, I have also impressed upon them the importance of insurers increasing their risk appetite, especially to provide cover for small and niche sectors that may be experiencing issues with affordability and availability.
In terms of next steps, rebalancing the Duty of Care legislation (the Occupiers’ Liability Act 1995 ) is now a priority. This legislation, which is expected to be passed this summer, would help to reduce frivolous claims proceeding to litigation. In time, cost savings from reduced claims should also help to lower premiums for businesses, particularly those engaged in high-risk/high-footfall areas, where claims associated with ‘slips, trips and falls’ are more prevalent.
In conclusion, I wish to assure the Deputy that seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. For my part, I am committed to working with colleagues to complete outstanding reforms, and monitoring their impact, with a view to achieving an improved insurance environment for all policyholders, including SMEs.
220. Deputy Carol Nolan asked the Minister for Finance if his Department assists with, or makes a financial contribution to, the sourcing or provision of childcare or crèche facilities for the children of staff members of any grade or position; if so, the names of the providers; the costs incurred for the period 2020 to date in 2023; the number of staff who have availed of such assistance over this timeframe; and if he will make a statement on the matter. [25972/23]
View answerI wish to inform the Deputy that the Department of Finance does not assist or make financial contribution to, the sourcing or provision of childcare or creche facilities for the children of staff members of any grade or position.
221. Deputy John McGuinness asked the Minister for Finance if, in view of the underlying deficit of approximately €4 billion being recorded on a 12-month rolling sum basis to the end of April this year, and given that this is coinciding with almost full employment in the economy, the public finances are in structural deficit; and if he will make a statement on the matter. [25987/23]
View answerMy Department published estimates of the structural budget balance for 2023 in the Government's Stability Programme Update last month.
The estimates show a modest structural surplus (c.0.8 per cent of GNI*) for this year. However, these are subject to considerable uncertainty as has been highlighted on many occasions by my Department.
It is certainly the case that the economy is at full employment with almost no slack in the economy. Because of this, it will be important to calibrate budgetary policy so as to avoid adding to inflationary pressures.
In recognition of windfall taxes, Government is taking steps to mitigate this risk. €6 billion in windfall receipts have been transferred to the National Reserve Fund and my officials have published a scoping paper on establishing a longer-term investment vehicle to make use of this windfall. Discussions on such a fund are ongoing and I intend to bring a proposal to Cabinet in the coming weeks.
Finally, the best way in which we can maintain our public finances on a stable trajectory and minimise the risks around corporation tax concentration is by pursuing a sustainable budgetary strategy. Government will set out its strategy for Budget 2024 in the Summer Economic Statement, which will be published over the coming period.
222. Deputy Colm Brophy asked the Minister for Finance if the recent announcement to make solar panels VAT-exempt will be applied so as to refund the VAT portion to those who placed orders prior to the announcement; and if there will be a retrospective clawback for those who have purchased and fitted in 2023. [26150/23]
View answerAs the Deputy will be aware VAT operates on two monthly cycles, consequently the Dáil passed a Financial Resolution on 18 April 2023 to allow this important measure in relation to solar panels to come into effect on 1 May, which was the start of the next VAT period.
If I had waited until the Finance Bill passed through the Oireachtas and was signed into law, the measure would not had come into effect until 1 July. In order to prevent market dislocation by an extended lead in period for the measure I secured cabinet approval for the use of a Financial Resolution to bring forward the implementation date to 1 May.
The zero rate of VAT for solar panels can only operate from this date forward. I have no discretion to apply this measure on a retrospective basis.
