Dáil Éireann Debate, Thursday - 16 June 2022
18. Deputy Brendan Griffin asked the Minister for Finance the measures that he is considering to reduce the burden of taxation on renters, renovators, first-time buyers and landlords with single properties; if he will consider a special package to assist the categories aforementioned; and if he will make a statement on the matter. [31299/22]
Amharc ar fhreagraHousing policy is a matter in the first instance for my colleague the Minister for Housing, Local Government and Heritage.
The Deputy's question is focused on a number of specific categories of stakeholder in the property market. However, I would like to highlight that the Government's ‘Housing for All ’ strategy sets out the Government comprehensive policy to address housing in all its various aspects and to create a sustainable housing system into the future.
The strategy is a multi-annual, multi-billion euro plan to improve Ireland’s housing system and deliver more homes of all types whilst addressing pressures within our housing market. This approach is expected to benefit both prospective owner-occupiers and renters by addressing the mismatch between demand and supply which has been a long-standing characteristic of the housing market.
The role of the Minister for Finance is in relation to taxation. The specific actions which the Department of Finance is tasked with delivering under Housing for All are:
1. Consider extension to Help to Buy; this was completed in Q4 2021.
2. Introduce a new vacant land tax, which was the Residential Zoned Land Tax, completed in Q4 2021.
3. Assess the adequacy of funding for Housing for All targets, which was completed also in Q4 2021;
4. Review the Help to Buy scheme to ensure it is appropriately calibrated, which was completed in Q3 2021. In this regard, I might note that the current comprehensive review of the scheme arose on foot of a recommendation made in that 2021 exercise;
5. Collect data on vacancy with a view to introducing a vacant property tax; this is due for completion at the end of Q2 2022;
6. Review the options on the tax and fiscal treatment of rental accommodation providers, which is due in Q3 2022;
7. Expand data sharing efforts between the Residential Tenancies Board and Revenue and the Department of Housing, Local Government and Heritage, which is due in Q1 2023; and
8. Increase funding for the Land Development Agency, which is due in Q1 2024.
In relation to first-time buyers, the Help to Buy scheme was extended in Budget 2022 until 31 December 2022 and, as I referenced already, the scheme is being reviewed in a comprehensive way at present.
On the question of the tax treatment of landlords' rental income, as I said, my Department is committed to review the recommendations of the Report of the Working Group on the Tax and Fiscal Treatment of Rental Accommodation Providers (2017) . A copy of the 2017 report is available on the Department's website [at: www.gov.ie/en/collection/51d1c-budget-2018/ ]. I understand that the review is currently in hand.
As indicated to the Deputy previously in the replies to his questions no. 82 dated 1 June 2022 and no. 208 of 2 June 2022, proposals for any new tax reliefs must be assessed in accordance with my Department's Tax Expenditure Guidelines. These make clear that it is important that any policy proposal which involves tax expenditures should only occur in limited circumstances. In particular, they provide that a tax-based incentive should only be considered where it would be more efficient than a direct expenditure intervention.
Ireland’s past experience with tax incentives in the property sector strongly suggests the need for a cautionary stance when considering State intervention.
