Dáil Éireann Debate, Thursday - 8 September 2022
434. Deputy Pearse Doherty asked the Minister for Finance the tax expenditures and reliefs that are due to expire at the end of 2022; and the estimated cost of extending each to the end of 2023, in tabular form. [44351/22]
Amharc ar fhreagraThe table below lists measures with a sunset clause this year i.e. measures that are due to expire at the end of 2022.
|
Tax expenditure |
Sunset clause |
|
CGT Farm consolidation relief (Farm Restructuring Relief) |
31.12.2022 |
|
Residential Development (Stamp Duty) Refund Scheme |
31.12.2022 |
|
Young Trained Farmer Relief |
31.12.2022 |
|
Farm Consolidation Relief |
31.12.2022 |
|
Help to Buy Incentive |
31.12.2022 |
|
Knowledge Development Box |
31.12.2022 |
|
Special Assignee Relief Programme (SARP) |
31.12.2022 |
|
Stock Relief: New arrangements for qualifying farmers (Young Trained Farmer) |
31.12.2022 |
|
Stock Relief: Special provisions for Registered Farm Partnerships |
31.12.2022 |
|
Living City Initiative |
31.12.2022 |
|
Foreign Earnings Deduction |
31.12.2022 |
|
Sea-going naval personnel |
31.12.2022 |
|
Reduced rate of USC for Medical Card Holders |
31.12.2022 |
If any of these expenditures are extended in the upcoming budget, the cost of extending the measures will be set out in the Budget Day documentation based on the latest available data.
It should also be noted that tax expenditures generally involve the state forgoing revenue in order to provide for the each specific expenditure. The revenue foregone varies from year to year and is dependent, amongst other factors, of the take up of each scheme by tax payers.
My Department publishes a detailed Report on Tax Expenditures as part of the package of documentation that accompanies the Budget each year, with the report for Budget 2022 available at gov.ie - Budget 2022 (www.gov.ie) under “Taxation Measures”. Each report includes lists of the tax expenditures currently in effect, and for the most recently available two years, the revenue foregone and number of claims. While containing historical data, the Report may provide a useful guide to the future cost of tax expenditures, however it should be noted that due to various factors it is not possible to provide cost and take-up data for some of the tax expenditures listed.
A number of the expenditures which are due to expire at the end of 2022 are either partially or fully in the base. These are listed in the table below.
|
Tax expenditure |
Sunset clause |
Budget package cost €m |
|
Tax expenditure |
Sunset clause |
Budget package cost €m |
|
Young Trained Farmer Relief |
31.12.2022 |
15 |
|
Help to Buy Incentive |
31.12.2022 |
83 |
|
Stock Relief: New arrangements for qualifying farmers (Young Trained Farmer) |
31.12.2022 |
8 |
|
Sea-going naval personnel |
31.12.2022 |
0.5 |
It is important to note that the figures are based on extending each measure by one year and assume no policy changes in respect of each of the expenditures listed. They also assume no tax payer change in behaviour.
