Written Answers Nos. 86-105
86. Deputy Fergus O'Dowd asked the Minister for Transport further to Parliamentary Question No. 875 of 3 June 2020, if further progress has been made in respect of the Meath County Council draft appraisal for the proposed Julianstown bypass; and if he will make a statement on the matter. [22881/20]
Amharc ar fhreagraAs outlined in the reply to Parliamentary Question No. 875 of 3 June 2020, the improvement and maintenance of regional and local roads is the statutory responsibility of the relevant local authority in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from the Council's own resources supplemented by State road grants.
The main focus of expenditure under the National Development Plan (NDP) is on the maintenance and renewal of the regional and local road network and implementation of the 12 regional and local road projects identified for development, subject to necessary approvals, in the NDP. Some limited provision is being made in the capital budget for the appraisal of a pipeline of upgrade projects. This is intended to cover the appraisal of projects for future development, if possible.
As previously indicated in relation to the appraisal of possible measures to manage traffic in the vicinity of Julianstown, the Department understands that Meath County Council intends to carry out an origin-destination information gathering exercise to obtain a clear indication of the traffic movements and patterns in and around Julianstown. The Council intends that the data collected from this exercise will inform a wider transport study for Drogheda and East Meath area that Meath County Council proposes to carry out in conjunction with Louth County Council as part of a future Joint Urban Plan. The Deputy may wish to contact Meath County Council to ascertain the current position regarding the collection of origin to destination data in view of the impact of Covid-19 restrictions on the exercise. The Council should also be able to provide an update regarding the implementation of the traffic management measures proposed for the Julianstown area.
As also explained previously, projects put forward for funding by local authorities must now comply with the revised Public Spending Code published in December 2019, including the requirement to prepare a Strategic Assessment Report.
87. Deputy Éamon Ó Cuív asked the Minister for Transport the steps being taken to ensure that drivers who are on a provisional driver licence can get driver tests in circumstances in which they need to drive a car for the purpose of going to work; and if he will make a statement on the matter. [22955/20]
Amharc ar fhreagraThe driver testing service restarted on a gradual basis during Phase 3 of the Government’s road map for easing of Covid19 restrictions.
On Monday 29 June, driving tests resumed on a gradual basis for trucks, buses and motorcycles (except for trucks in C1 and buses in D1 categories). Driving tests for cars, minibuses and vans resumed from the 16 July.
Essential workers and those who had appointments cancelled due to Covid 19 are being prioritised in the first instance. Initially, only those who are frontline healthcare workers will be deemed eligible for an urgent test slot. It must also be borne in mind, due to social distancing guidelines, fewer daily tests will be conducted by each driver tester. Therefore, while there will be some availability for urgent tests, the RSA's capacity to make these available in all cases will be limited.
My Department is remaining in close contact with the RSA, which is exploring how further to manage backlogs while prioritizing public health, and this process is being informed by lessons learned as centres operate under the new health restrictions.
88. Deputy Bríd Smith asked the Minister for Finance the number of recipients of the wage subsidy scheme at the end of August 2020; the number who will be in receipt of the new employment subsidy scheme; the number who receive top-ups from their employers; the average amount of these top-ups; and the number on the new scheme who are receiving less from this support than the current jobseeker's allowance. [22961/20]
Amharc ar fhreagraRevenue has published detailed statistics related to the Temporary Wage Subsidy Scheme (TWSS) on a weekly basis throughout the duration of the scheme to provide as timely and transparent data on the utilisation and impact of the TWSS as possible. These statistics, which include information on the cost, numbers of employees and employers availing of the scheme, are published at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of-taxpayers-and-returns/covid-19-wage-subsidy-scheme-statistics.aspx.
As set in the most recent report dated 3 September, it is estimated 360,000 employees were being directly supported by the Scheme in the last week, having received a subsidy in their most recent pay period. Between March and August 2020, over 65,000 employers have received a subsidy under the TWSS with payments worth over €2.8 billion paid out to a total of 663,100 workers.
Revenue has confirmed that over the course of the operation of the TWSS, more than 80% of employees were in receipt of top-ups (wages in addition to the subsidy) from their employers in most weeks. Towards the end of scheme, this approached an average of almost 90% in most weeks. The average top up amount for weekly paid employees was approximately €100 while the average TWSS payment was approximately €300.
Revenue has advised me that it has started to include information on the Employment Wage Subsidy Scheme (EWSS) in the statistical reports which are published at the above link. As of 7 September, over 30,000 employers had registered for the Scheme so far. The detail in the statistics, including the numbers of employees being supported by the EWSS, will be expanded in the coming weeks as the scheme progresses.
89. Deputy Bríd Smith asked the Minister for Finance the measures his Department has in place to ensure that workers who remain on the employment subsidy scheme with their employers and who are working a specified number of hours per week are not receiving less than the statutory minimum wage or their former hourly pay rates; and if he will make a statement on the matter. [22962/20]
Amharc ar fhreagraThe Employment Wage Subsidy Scheme (EWSS) is an economy-wide enterprise support that gives a flat rate subsidy to qualifying employers. It is a stand-alone measure to preserve the link between employee and employer and support firm viability through an unprecedented enterprise environment and it is based on clear, objective criteria that may be determined by the Revenue Commissioners.
The position in relation to the EWSS and the Temporary Wage Subsidy Scheme (TWSS) does not affect any legal obligations that the employer may have to their employee as regards any terms, conditions or entitlements of their employment, including pay, sick pay or pension schemes.
In designing the scheme, concerns around manipulation of access to the EWSS have been addressed to the greatest extent possible. Subsection 2(6) of Section 2B of the Financial Provisions (Covid-19) (No. 2) Bill 2020 has safeguards in place. This section provides Revenue with significant powers to address the type of abuse the Deputy is referring to, i.e. if an employer “has resorted to any contrivance by way of deferring, suspending increasing or decreasing the gross pay that would otherwise have been paid to the qualifying employee.”
Anything beyond that would be expressly outside of the remit of the Revenue Commissioners, but there are a sufficient number of bodies that deal with employment disputes in Ireland and where there is a high amount of expertise including the Workplace Relations Commission and the Labour Court. Although these bodies fall under the remit of the Department of Business, Enterprise and Innovation, it is understood that there are already checks and balances in place to ensure fairness to employees and employers.
Further, the proposed legislation requires that immediately at the end of each month, from August 2020 onwards, each employer availing of the EWSS must carry out a self-review of its business circumstances. Following such review, if it is manifest to the employer that it no longer will meet the eligibility test for qualification for the scheme, namely, at least a 30 per cent reduction in business turnover or customer orders in the period from 1 July to 31 December 2020 by reference to the corresponding 2019 period, then the employer must immediately cease claiming wage subsidy payments.
Finally, the administration of the EWSS will be placed under the care and management of Revenue, as was done with its predecessor, the TWSS. While Revenue’s focus on the EWSS in its early stages will no doubt be concentrated on getting the scheme up and running and ensuring that all employers who are eligible for subsidy payments receive the payments in a timely manner, I have no doubt but that Revenue will, in due course, undertake an appropriate employer compliance campaign relating to the EWSS.
90. Deputy Catherine Murphy asked the Minister for Finance the amount borrowed by the State to date from the European Commission under the SURE initiative; the way in which the funds will be distributed here; and if he will make a statement on the matter. [22738/20]
Amharc ar fhreagraThe SURE instrument is intended primarily to support Member States with efforts to protect workers and jobs, and also support some health-related measures. It is temporary in nature, with the duration and scope limited to tackling the consequences of the coronavirus pandemic. It was adopted at ECOFIN, and published in the Official Journal of the European Union on 19 May 2020.
Briefly, the Commission will borrow on financial markets to finance loans to Member States, allowing Member States benefit from the EU’s strong credit rating (AAA) and low borrowing costs. Under the proposal, SURE will provide financial assistance to Member States of up to €100bn in total. The loans are targeted to assist Member States to address sudden increases in public expenditure caused by the Covid-19 pandemic, in order to preserve employment (such as short-time work schemes and other similar measures put in place for the self-employed) and certain occupational health expenditure.
SURE would come with safeguards to ensure fair and equitable access to funding for MS, with no more than €60 billion available to any three MS, under the proposal. The loans will be underpinned by a system of voluntary guarantees from Member States. For a lending volume of €100bn under the SURE instrument, €25bn in guarantee commitments are required from all Member States collectively. This guarantee mechanism ensures MS do not have to pay any money upfront. The instrument would not become available until all Member States sign up to their guarantee amount, and these commitments would remain in place for the full term of the loans which they are underwriting.
Each Member State contributes to the guarantee in proportion to its relative share in the total Gross National Income of the Union. For Ireland, this would be equivalent to €483m (1.9% of EU-27 GNI).
On 24 and 25 August the EU Commission published plans to give €87.3bn in loans to 16 Member States as part of the first tranche of SURE loans. Once the Council approves these applications, financial support will be provided in the form of loans making use of the EU Commission’s low cost of borrowing. This funding will be made available over the course of the coming months. The remaining €12.7bn is available for disbursement. There will be more than one tranche of funding.
A decision to make a formal application to the SURE loan scheme will be taken by Government in the coming weeks and the necessary information is being prepared at present. It is likely that the expenditure on the (now ended) Temporary Wage Subsidy scheme will be largely eligible for the SURE instrument.
91. Deputy Patrick Costello asked the Minister for Finance if he has met formally with each of the CEOs of banks based here since 1 June 2020; and if so, the dates of each meeting in tabular form. [22760/20]
Amharc ar fhreagraThe Tánaiste and Minister for Enterprise, Trade and Employment, Mr Leo Varadkar TD, along with the Minister for Public Expenditure and Reform, Mr Michael McGrath TD and I met with the CEOs of AIB and Bank of Ireland on the 15th of July 2020 and with the CEO of Ulster Bank on the 16th of July 2020.
92. Deputy Niamh Smyth asked the Minister for Finance his plans to extend the help-to-buy scheme to a person (details supplied); and if he will make a statement on the matter. [22847/20]
Amharc ar fhreagraThe 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 Ireland over the previous four years, subject to limits outlined in the legislation.
The legislation governing the HTB scheme is set out in section 477C of the Taxes Consolidation Act 1997. In addition to requiring that the new property is occupied as the sole or main residence of a first time purchaser, the legislation also defines a ‘qualifying residence’ for the purposes of the scheme. The legislation is very specific as to the definition of a qualifying residence. It must be a new building which was not, at any time, used or suitable for use as a dwelling. Thus, for a property to qualify for HTB, it must be new or converted for use as a home not having been previously been used as a home. Renovation or refurbishment of old houses to either upgrade or reinstate them for habitation does not qualify for the HTB incentive.
As regards the specific case outlined in the Deputy’s question, given that the house has previously been lived in, Revenue advise me that it would not be considered a qualifying residence for the purposes of HTB, and HTB relief would not be available.
An increase in the supply of new housing remains a priority aim of Government policy. The Help to Buy (HTB) scheme is specifically designed to encourage an increase in demand for affordable new build homes in order to encourage the construction of an additional supply of such properties. If HTB were also available for second-hand properties, it would limit the incentive effect on the provision of additional supply. I have no plans to extend HTB to second-hand properties.
93. Deputy Sean Sherlock asked the Minister for Finance if there are dates by which a new hire must have been hired by a company to avail of the employment wage subsidy scheme. [22860/20]
Amharc ar fhreagraThe Employment Wages Subsidy Scheme (EWSS) was legislated for under the recently enacted Financial Provisions (Covid-19) (No. 2) Act 2020. The EWSS provides a flat-rate subsidy to qualifying employers, based on the number of qualifying employees on the payroll. For every qualifying employee paid between €203 and €1,462 gross per week, the level of subsidy is €203. For every qualifying employee paid between €151.50 and €202.99 gross per week, the subsidy is €151.50. No subsidy is paid for employees paid less than €151.50 or more than €1,462 gross per week.
Unlike the Temporary Wage Subsidy Scheme, there is no restriction on the date by which a new hire must have been hired by a company to avail of the EWSS, provided such recruitments are undertaken for bona fide business purposes and not with the intention to maximise subsidy claims. A subsidy can be claimed in respect of employees of an impacted business on the payroll and in receipt of gross wages between €151.50 and €1,462 subject to limited exceptions in relation to connected persons during the period of the scheme.
Connected persons includes the husband, wife, civil partner or relative of the employer, and relative includes a lineal descendant, brother, sister, uncle aunt, nice or nephew. I have been advised by Revenue that only connected persons on the payroll of the employer and paid at any time between 1 July 2019 to 30 June 2020 are eligible for EWSS. Thus newly hired connected persons are not considered eligible employees.
In recognition of the exclusion from TWSS of new entities, seasonal employees and new hires, under EWSS eligible employers can back date a claim for the EWSS to 1 July 2020 where the employer was not eligible for TWSS or, where the employer had employees not eligible for TWSS. These cases will be dealt with as part of a ‘sweepback’ with payment to employers made in September.
Finally, I would draw the attention of the Deputy to the comprehensive information on the Employment Wage Subsidy Scheme, including guidance for employers who wish to make a claim under the ‘sweepback’ process which is available on the Revenue website.
https://www.revenue.ie/en/corporate/communications/documents/ewss-guidelines.pdf
94. Deputy Steven Matthews asked the Minister for Finance if consideration has been given to allowing sole traders to access the employment wage subsidy scheme, as they would be entitled to if they were listed as a company director in circumstances in which all other qualifying criteria for the scheme are met. [22871/20]
Amharc ar fhreagraThe Employment Wage Subsidy Scheme (EWSS) was legislated for in the recently enacted Financial Provisions (Covid-19) (No. 2) Act 2020. The objective of the EWSS is to support employment and maintain the link between the employer and employee insofar as is possible, as well as enabling employers scale back up their business.
The EWSS provides a flat-rate subsidy to qualifying employers based on the number of qualifying employees on the payroll. A sole-trader’s business may be a qualifying employer for the purpose of the scheme, the same as is the case for any other employer. As was the case under the Temporary Wage Subsidy Scheme (TWSS), sole-traders are not eligible to claim the EWSS in respect of their own employment as they are not employees – and further, may not necessarily be paid via the payroll system unlike proprietary directors who are obliged to have PAYE operated on any payments made to them personally.
The EWSS is a significant economy wide support for employers, but it is not the only measure that the Government have put in place to support businesses at this time, including those that are specifically targeted at sole-traders, such as the income tax loss relief measure that was announced in July as part of the Stimulus Package. This new once-off income tax relief is targeted at self-employed individuals carrying on a trade or profession who were profitable in 2019 but, as a result of the Covid-19 pandemic, incur losses in 2020. The measure allows such individuals to claim to have those losses (and certain unused capital allowances) carried back and deducted from their profits for the tax year 2019 providing a cash-flow boost of up to €5,000 or €10,000 as applicable.
Further, there are a range of other business support measures available, such as Credit Guarantee Scheme, the SBCI Working Capital Scheme, Sustaining Enterprise Fund, and the Covid-19 Business Loans Scheme.
95. Deputy Darren O'Rourke asked the Minister for Finance if he has spoken directly with his Australian counterpart in the past six months. [22883/20]
Amharc ar fhreagraIn the past six months I have spoken directly with my Australian counterpart on one occasion, by phone on the 30th July. This call is an example of ongoing dialogue between Finance Minister counterparts across all countries, which has become ever more important during the current Covid-19 pandemic and its associated impact on international travel and engagement.
This engagement provided an opportunity to engage constructively on the strong relationship between our countries, the Covid-19 pandemic and the global economic situation, and the many areas of common interest and engagement shared by Ireland and Australia.
96. Deputy Ged Nash asked the Minister for Finance the projected deficit for 2020 on the basis of revenue receipts to date based on the Exchequer returns for August 2020; if he will provide updated projections for revenue across the various tax heads; and if he will make a statement on the matter. [22927/20]
Amharc ar fhreagra105. Deputy Ged Nash asked the Minister for Finance the estimated impact of the July stimulus proposals on the Exchequer deficit for 2020 and 2021; the breakdown of the impact by individual tax heads; and if he will make a statement on the matter. [22938/20]
Amharc ar fhreagra107. Deputy Ged Nash asked the Minister for Finance the most up-to-date estimate of the deficit for 2020 and 2021 based on current analysis; and if he will make a statement on the matter. [22941/20]
Amharc ar fhreagra108. Deputy Ged Nash asked the Minister for Finance the estimated Exchequer borrowing requirement for 2020 and 2021 based on current analysis; and if he will make a statement on the matter. [22942/20]
Amharc ar fhreagraI propose to take Questions Nos. 96, 105, 107 and 108 together.
As the Deputy will be aware, the unprecedented economic situation of the last six months has meant that medium-term economic and fiscal forecasts are subject to an exceptional level of uncertainty.
My Department’s most recent official forecasts, published in the Stability Programme Update, were, accordingly, produced on a short-term basis, as per guidance from the European Commission. At that time , a general government deficit in the range of €23 to €30 billion, or 7 to 10 per cent GDP was estimated for this year. While the situation remains highly uncertain, the Department of Finance is currently undertaking work on a full set of updated economic and fiscal forecasts as part of preparation for Budget 2021.
The continuing uncertainty means that my officials will take into consideration all possible data points and relevant information, such as the recently published Q2 National Accounts data and the September Exchequer returns, to ensure that the forecasts are as accurate as possible. Projections produced earlier would be based on less information and, as a result, would likely be less accurate.
The updated set of economic and fiscal forecasts, which will take into account the fiscal impact of the July stimulus package, taxation receipts to-date and any decisions made in the context of the Budget will be published next month.
97. Deputy Ged Nash asked the Minister for Finance the estimated cost of the temporary wage subsidy scheme in 2020; the projected cost if it had been retained for the rest of the year; the number of employers that accessed the scheme; the number of employees who have been supported; and if he will make a statement on the matter. [22928/20]
Amharc ar fhreagra98. Deputy Ged Nash asked the Minister for Finance the projected cost of the employment wage subsidy scheme in 2020 and 2021; the projected cost if it had been retained at the same rate as the temporary wage subsidy scheme; the number of employers that have accessed the scheme; the number of employees who have been supported; the estimated full-year cost for 2021 if it were extended for the rest of the year; and if he will make a statement on the matter. [22929/20]
Amharc ar fhreagraI propose to take Questions Nos. 97 and 98 together.
Between March and August 2020, over 65,000 employers have received a subsidy under the Temporary Wage Subsidy Scheme (TWSS) with payments worth over €2.8 billion paid out to a total of 663,100 workers. The average monthly cost is around €500m which would be the expected cost per month if the measure was to be retained beyond the end date of 31 August.
Revenue published detailed statistical updates on the TWSS on a weekly basis for the duration of the scheme in order to provide as timely and transparent data on the utilisation and impact of the TWSS as possible. These statistics are available at: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of-taxpayers-and-returns/covid-19-wage-subsidy-scheme-statistics.aspx.
The Employment Wage Subsidy Scheme (EWSS) was legislated for in the recently enacted Financial Provisions (Covid-19) (No. 2) Act 2020, replacing the TWSS from 1 September 2020 until March 2021. It provides a flat-rate subsidy to qualifying employers, based on the number of qualifying employees on the payroll. This adaptation from the TWSS will allow employers to rely on the continuation of support over a longer period of 8 months while also ensuring such support is sustainable and affordable.
Revenue has confirmed that it has started to include information on the EWSS in their statistics, also located at the above link. As of 7 September, over 30,000 employers have registered for the Scheme. The EWSS detail in the statistics, including the numbers of employees being supported, will be expanded in the coming weeks as the scheme progresses.
It is expected that the EWSS will support around 350,000 jobs into the beginning of 2021. On this basis, it is estimated that the EWSS will cost €2.25 billion (€1.35 billion in 2020 inclusive of seasonal workers and €0.9 billion in 2021). All things remaining the same, a tentative estimate of the additional cost if the EWSS was to be extended for the full year 2021 would be in the region of €3 billion. The scheme is demand led and a significant surge in claims may require a policy review and re-evaluation of the terms of the scheme. These cost predictions are therefore subject to review and for every additional 50,000 qualifying employments, the cost increases by €0.25 billion.
Although many of the strictest public health restrictions on the economy have been eased it is recognised that economic outputs are unlikely to return to normal for many businesses for much of the rest of 2020 because of the continued need to observe some requirements such as social distancing. The Government is therefore committed to a wage subsidy scheme to maintain the link between the employee and employer insofar as is possible into 2021.
99. Deputy Ged Nash asked the Minister for Finance the projected yield in 2021 from ending the refundable aspect of the research and development tax credit; and if he will make a statement on the matter. [22930/20]
Amharc ar fhreagraI am advised by Revenue that information in respect of the Research and Development (R&D) tax credit is available at: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/r-and-d-tax-credits.aspx. This includes the cost of payable tax credits for each of the relevant years. The most recent year for which returns have been filed is 2018.
It is not possible to accurately predict the yield from ending the payable element of the R&D credit, as information in respect of the future level of the payable credit is not available. This is dependent on both the future profitability of claimant companies as well as their level of qualifying R&D activity.
100. Deputy Ged Nash asked the Minister for Finance the projected yield from abolishing relief under section 604A; the cost to date to the Exchequer annually of this relief; and if he will make a statement on the matter. [22933/20]
Amharc ar fhreagraSection 604A of the Taxes Consolidation Act 1997 provides relief, from CGT for property purchased in any state in the European Economic Area between 7 December 2011 and 31 December 2014, on any gain in respect of the disposal where that property is held for 7 years. Consequently, the gain attributed to that 7-year period will not attract CGT.
Finance Act 2017 amended the relief, providing that where the property is held for at least 4 years and less than 7 years, any gain will not be liable to CGT where the disposal is made on or after 1 January 2018.
Where the property is held for more than 7 years, relief is reduced in the same proportion that the period of 7 years bears to the overall period of ownership. For example, if the property is held for 9 years, relief will be provided on 7/9ths of the gain.
I am advised that Revenue has this year published a detailed statistical analysis of Section 604A relief from Capital Tax Gains, available at:
https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/section-604a-relief.aspx.
Information in respect of Section 604A is available for the first time on 2018 tax returns. Information for later years will be published when returns for those years are filed. It is not possible to accurately predict the yield from abolishing the relief as information is not available in respect of possible future claims. The cost of the relief for 2018 is estimated at €113 million.
101. Deputy Ged Nash asked the Minister for Finance the projected yield from every €1 per tonne increase in the carbon tax; the estimated yield if there were a €10 increase in 2021; and if he will make a statement on the matter. [22934/20]
Amharc ar fhreagraI am advised by Revenue that the pre-Budget 2021 Ready Reckoner, published at: https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf, shows on page 21 the estimated yield from increasing Carbon Tax by a range of amounts including €1 and €10 per tonne.
102. Deputy Ged Nash asked the Minister for Finance the number of persons who availed of the cycle to work scheme in each of the years 2017 to 2019 and to date in 2020; the cost of the scheme in each of the years; the number of persons who accessed the maximum amount of tax relief in each of those years; the average tax relief in each year; and if he will make a statement on the matter. [22935/20]
Amharc ar fhreagra103. Deputy Ged Nash asked the Minister for Finance the rationale for the increase in the amount of tax relief available under the cycle to work scheme to €1,500 for pedelecs and ebikes and €1,250 for all other bicycles; and if he will make a statement on the matter. [22936/20]
Amharc ar fhreagraI propose to take Questions Nos. 102 and 103 together.
As I have said in response to a number of parliamentary questions, most recently PQ no. 10942/20 on 16 June 2020, the cycle to work scheme operates on a self-administration basis. Relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation. There is no notification procedure for employers involved. This approach was taken with the deliberate intention of keeping the scheme simple and reducing administration on the part of employers.
Accordingly, there are no records available on the number of people availing of the scheme.
Tax expenditure reports prepared by my Department have estimated the cost in the full years referenced at €4 million but have been clear that this figure was an estimate as separate returns are not required.
The Programme for Government- Our Shared Future recognises that “Necessary improvements in climate impact, quality of life, air quality and physical and mental health demand that every effort is made by the Government to make active travel and public transport better and more accessible.”
The Programme provides a commitment to widen the eligibility of the Bike to Work scheme and specifically to “provide an increased proportionate allowance for e-bikes and cargo bikes.”
Section 9 of the Financial Provision (Covid-19)(No.2) Act 2020 provided for amendments to the Cycle to Work Scheme to increase the allowable expenditure from €1,000 to €1,500 in respect of e-bikes and €1,250 in respect of bicycles and to amend the conditions to allow the purchase of a new bicycle every 4 years instead of 5.
Prior to this, the threshold had not been changed since the cycle to work scheme was introduced in 2009. It should also be noted that safety equipment such as cycle helmets, panniers and luggage carriers and locks can add significantly to the base cost of the bicycle. As pedelecs (e-bikes) are more expensive than other bicycles a higher threshold was provided for them.
104. Deputy Ged Nash asked the Minister for Finance the tax reliefs exempted from the high-income individual restriction; the estimated additional yield if those reliefs were not exempted; and if he will make a statement on the matter. [22937/20]
Amharc ar fhreagraRevenue prepares an annual report on the High Income Individuals’ Restriction (HIIR), which is published at https://www.revenue.ie/en/corporate/information-about-revenue/research/statistical-reports/high-income-earners-reports.aspx. Table 3 on page 10 of the analysis for 2017 shows, in relation to each specified relief, the number of individuals subject to the Restriction who declared that they used the relief. It also includes the amount of the relief declared as used by those individuals. I expect that report for 2018 will be published shortly.
I am advised by Revenue that it is not possible to assess the implications of the extension of the restriction to other reliefs, as such reliefs are not reported on HIIR returns filed by the relevant individuals. In any event, the purpose of the HIIR is to limit reliefs so that the relevant cohort of high earning taxpayers is paying a minimum effective rate. The HIIR analysis published by Revenue indicates that this outcome is already being achieved. The limiting of further reliefs in the manner suggested would therefore have no effect on the yield of the HIIR since the restriction only applies up to the point where an individual meets the minimum effective rate and not beyond that point.
