Dáil Éireann Debate, Thursday - 5 October 2023
112. Deputy Pearse Doherty asked the Minister for Finance for an update on the operation of the defective concrete products levy, its application to precast concrete products and autoclave aerated concrete, its impact on residential construction costs; and if he will make a statement on the matter. [43135/23]
View answerAs the Deputy will be 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 ("DCPL") was announced as part of Budget 2023.
The DCPL only came into effect on 1 September 2023, with the first return under it not due until 23 days after the end of the first accounting period, that is 23 days after 31 December 2023 i.e. 23 January 2024. It is therefore still too early to provide an update on the operation of the levy.
The DCPL applies, at a rate of 5% of the market value of the concrete products within scope of the levy, at the point of first supply of those products in the State on or after 1 September 2023. The levy applies to both supplies within the State and into the State (from outside the State) to ensure fairness of application of the levy.
It is important to note that pre-cast concrete products are not within the scope of the levy, and therefore the levy does not apply on supplies of such products. The DCPL does however, apply to the value of pouring concrete that forms a constituent element of precast concrete products.
In light of recent feedback from industry participants on the 6th of September 2023 I announced my intention to bring forward amendments in the forthcoming Finance Bill to exclude the value of pouring concrete used in precast products from the scope of the levy. This will come in to effect on 1 January 2024 and a refund scheme will apply for the interim period to the end of 2023. Concrete blocks and pouring concrete for use other than in precast products will remain within scope of the DCPL.
Recognising that pre-cast concrete is an important and growing export orientated sector, my Department is engaging with industry and other relevant experts to prepare the necessary amendments.
The levy is intended to apply to concrete blocks and my Department is aware of issues regarding autoclave aerated concrete blocks. The current legislation unintentionally did not sufficiently ensure that autoclave aerated concrete blocks are in scope of the levy. My Department is currently analysing this issue and I will make an amendment in the forthcoming Finance Bill to ensure that all blocks are in scope.
