Written Answers Nos. 305-318
306. Deputy Brendan Smith asked the Minister for Finance if he will give detailed consideration to the issues raised in a report (details supplied) which outlines the difficulties that will arise for a sector with the introduction of a levy on products; if he is aware that such levy imposition will adversely affect this sector, particularly in the Border region; and if he will make a statement on the matter. [35294/23]
View answerAs the Deputy is aware, arising from a November 2021 Government decision that a levy be imposed on the construction sector to contribute towards the cost of the Mica Redress Scheme, the Defective Concrete Products Levy was announced as part of Budget 2023.
As part of the work undertaken on the impact that the levy could have on the construction sector the Department of Housing, Local Government and Heritage commissioned a bottom up scientific analysis, which was carried out by an independent Construction Economics Cost Consultant, to help identify the likely impact of the levy on construction costs.
This report was carried out in September 2022 and took account of the prevailing relevant costs in the construction sector as they applied at the time they were prepared. The costs set out in the report are for the third quarter of 2022 and account for inflation up to that point in time. This report was undertaken on the impact of the levy, as was announced in the Budget 2023 speech, and so the cost assessment is based on a 10% levy on concrete products for typical dwellings. As the rate of the levy as published in the Finance Bill 2022 was subsequently reduced to 5% following consideration of feedback received from industry participants and others, the costings in the analysis should be reduced by approximately 50% to determine the impact of the new design of the Defective Concrete Products Levy on costs. This report is available on the Department's website.
Therefore, while it should be noted that costs are subject to range of variables, and based on the situation in late 2022, the levy is expected to result in an increase in hard costs of between €400 to €800 for a typical 3 bed semi-detached house and between €375 to €550 per apartment in a typical 6 floor apartment block with basement carpark. When soft costs including cost of finance, fees, risk and contingency are included the impact of the levy for typical dwelling was estimated to be €700 to €1,100 and for a typical apartment €650 to €1,050.
The percentage increase in construction and development costs of the levy was therefore estimated to be approximately 0.2% to 0.45% for a typical semi-detached dwelling and 0.15% to 0.2% for a typical apartment for both hard and soft costs.
The levy is not due to be applied until 1 September 2023. The delay in its introduction was provided in order to allow time for all parties impacted by it to prepare for its introduction. I have no plans to further defer its introduction, but can confirm that its impact will be monitored once it is in place.
307. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of reducing the 0.5% rate of USC to 0% in first- and full-year terms, and in each of the years 2024, 2025, 2026, 2027, 2028 and 2029. [35334/23]
View answer308. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of reducing the 2% rate of USC to 1.05% and 0%, respectively, in first- and full-year terms, and in each of the years 2024 to 2029. [35338/23]
View answer309. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of reducing the 0.5% rate of USC to 0%, reducing the two% rate of USC to 0% and increasing the entry point for the 4.5% rate of USC to €30,000, in first and full-year terms, and in each of the years 2024, 2025, 2026, 2027, 2028 and 2029. [35349/23]
View answer311. Deputy Pearse Doherty asked the Minister for Finance the estimated cost, in first- and full-year terms, and in the years 2024, 2025, 2026, 2027, 2028 and 2029, of reducing the 0.5% rate of USC to 0%, reducing the 2% rate of USC to 0.5% and increasing the entry point of the 4.5% rate of USC from €22,920 to €23,930. [35383/23]
View answer312. Deputy Pearse Doherty asked the Minister for Finance the estimated cost, in first- and full-year terms, and in the years 2024, 2025, 2026, 2027, 2028 and 2029, of reducing the 0.5% rate of USC to 0%, reducing the 2% rate of USC to 0.5% and increasing the entry point of the 4.5% rate of USC from €22,920 to €24,336. [35384/23]
View answer313. Deputy Pearse Doherty asked the Minister for Finance the estimated cost, in first- and full-year terms, and in the years 2024, 2025, 2026, 2027, 2028 and 2029, of reducing the 0.5% rate of USC to 0%, reducing the 2% rate of USC to 0.5% and increasing the entry point of the 4.5% rate of USC from €22,920 to €24,945. [35385/23]
View answer314. Deputy Pearse Doherty asked the Minister for Finance the estimated cost, in first- and full-year terms, and in the years 2024, 2025, 2026, 2027, 2028 and 2029, of reducing the 0.5% rate of USC to 0%, reducing the 2% rate of USC to 0.5% and increasing the entry point of the 4.5% rate of USC from €22,920 to €25,959. [35386/23]
View answer315. Deputy Pearse Doherty asked the Minister for Finance the estimated cost, in first- and full-year terms, and in the years 2024, 2025, 2026, 2027, 2028 and 2029, of reducing the 0.5% rate of USC to 0%, reducing the 2% rate of USC to 0.5% and increasing the entry point of the 4.5% rate of USC from €22,920 to €26,567. [35387/23]
View answer316. Deputy Pearse Doherty asked the Minister for Finance the estimated cost, in first- and full-year terms, and in the years 2024, 2025, 2026, 2027, 2028 and 2029, of reducing the 0.5% rate of USC to 0%, reducing the 2% rate of USC to 0.5% and increasing the entry point to the 4.5% rate of USC from €22,920 to €28,088. [35388/23]
View answer317. Deputy Pearse Doherty asked the Minister for Finance the estimated cost in first- and full-year terms, and in the years 2024, 2025, 2026, 2027, 2028 and 2029, of reducing the 0.5% rate of USC to 0%, reducing the 2% rate of USC to 1% and increasing the entry point of the 4.5% rate of USC from €22,920 to €23,930. [35392/23]
View answer318. Deputy Pearse Doherty asked the Minister for Finance the estimated cost in first- and full-year terms, and in the years 2024, 2025, 2026, 2027, 2028 and 2029, of reducing the 0.5% rate of USC to 0%, reducing the 2% rate of USC to 1% and increasing the entry point of the 4.5% rate of USC from €22,920 to €24,336. [35393/23]
View answer319. Deputy Pearse Doherty asked the Minister for Finance The estimated cost in first- and full-year terms, and in the years 2024, 2025, 2026, 2027, 2028 and 2029, of reducing the 0.5% rate of USC to 0%, reducing the 2% rate of USC to 1% and increasing the entry point of the 4.5% rate of USC from €22,920 to €24,945. [35394/23]
View answer320. Deputy Pearse Doherty asked the Minister for Finance the estimated cost in first- and full-year terms, and in the years 2024, 2025, 2026, 2027, 2028 and 2029, of reducing the 0.5% rate of USC to 0%, reducing the 2% rate of USC to 1% and increasing the entry point of the 4.5% rate of USC from €22,920 to €25,959. [35395/23]
View answer321. Deputy Pearse Doherty asked the Minister for Finance the estimated cost in first- and full-year terms, and in the years 2024, 2025, 2026, 2027, 2028 and 2029, of reducing the 0.5% rate of USC to 0%, reducing the 2% rate of USC to 1% and increasing the entry point of the 4.5% rate of USC from €22,920 to €26,567. [35396/23]
View answer322. Deputy Pearse Doherty asked the Minister for Finance the estimated cost in first- and full-year terms, and in the years 2024, 2025, 2026, 2027, 2028 and 2029, of reducing the 0.5% rate of USC to 0%, reducing the 2% rate of USC to 1% and increasing the entry point of the 4.% rate of USC from €22,920 to €28,088. [35397/23]
View answer323. Deputy Pearse Doherty asked the Minister for Finance the estimated cost, in first- and full-year terms, of increasing the personal, employee PAYE and earned income tax credits by €50, respectively, disaggregated by credit type. [35409/23]
View answer324. Deputy Pearse Doherty asked the Minister for Finance the estimated cost, in first- and full-year terms, of increasing the personal, employee PAYE and earned income tax credits by €100, respectively, disaggregated by credit type. [35410/23]
View answer325. Deputy Pearse Doherty asked the Minister for Finance the estimated cost, in first- and full-year terms, of increasing the personal, employee PAYE and earned income tax credits by €45, respectively, disaggregated by credit type. [35411/23]
View answerI propose to take Questions Nos. 307 to 309, inclusive, and 311 to 325, inclusive, together.
The Department of Finance has opened its pre-budget costings service, this is available with effect from 3 July 2023. The procedures for availing of this service are set out in a letter dated 3 July 2023 from the Secretary General of the Department to all recognised parties and technical groups in Dáil Éireann. To ensure efficiency and fairness all costing requests should be made in this manner, via the standard request format template, instead of the Parliamentary Question system at this time.
310. Deputy Richard Bruton asked the Minister for Finance the latest statistics for the number of persons claiming each category of credit or allowance in the income tax code; and the cost in each case. [35377/23]
View answerThe position currently is that the most up to date statistics for the number of persons claiming each category of credit or allowance in the income tax code is contained on the Revenue website and this is updated on an ongoing basis. Further information can be found at this link: www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.pdf
I am advised by Revenue that it expects to publish an update of costs of tax expenditures by August 2023.
