Seán Canney
Ceist:225. Deputy Seán Canney asked the Minister for Transport the current status of a safe routes to school programme 2021 for a school (details supplied); and if he will make a statement on the matter. [57961/22]
Amharc ar fhreagraDepartmental Programmes
Ceisteanna (225)
Freagraí scríofa
The Safe Routes to School (SRTS) Programme was launched in March 2021 with the aim of supporting walking, scooting and cycling to primary and post-primary schools and creating safer walking and cycling routes within communities. This will help alleviate congestion at school gates and increase the number of students who walk or cycle to school by providing the necessary infrastructure.
The programme is administered on behalf of the Department by the National Transport Authority (NTA) and An Taisce Green Schools. Over 900 schools applied to the programme each year, and while 170 of these were selected for Round 1, all other schools which applied will enter the programme on a rolling basis. Round 2 is expected to be announced in the coming weeks.
I am aware that the school in question has applied to the Safe Routes to School Programme; however noting the role of the NTA in the matter, I have referred your question in relation to the status of this specific application to that agency for a more detailed answer. If you do not receive a reply within 10 working days please contact my private office.
A referred reply was forwarded to the Deputy under Standing Order 51
Cycling Facilities
Ceisteanna (226)
Cathal Crowe
Ceist:226. Deputy Cathal Crowe asked the Minister for Transport the status of the provision of cycling infrastructure at a location (details supplied) in County Clare. [58011/22]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise you on the status of this project.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
A referred reply was forwarded to the Deputy under Standing Order 51
Bus Services
Ceisteanna (227)
Catherine Murphy
Ceist:227. Deputy Catherine Murphy asked the Minister for Transport the number and percentage of the Dublin Bus fleet that is aged zero to one years old, between two and four years old, between five and eight years old, between nine and 12 years old and over 12 years old as of 16 November 2022, in tabular form. [58019/22]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has responsibility for the planning and development of public transport infrastructure, including the provision of the PSO bus fleet.
Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.
A referred reply was forwarded to the Deputy under Standing Order 51
Transport Infrastructure Ireland
Ceisteanna (228)
Catherine Murphy
Ceist:228. Deputy Catherine Murphy asked the Minister for Transport the amount that Transport Infrastructure Ireland has spent on road remarking and maintenance works on both the M50 and M4 in 2021 and to date in 2022, in tabular form. [58020/22]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise you.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
A referred reply was forwarded to the Deputy under Standing Order 51
Bus Services
Ceisteanna (229)
Paul Murphy
Ceist:229. Deputy Paul Murphy asked the Minister for Transport if he will request the NTA to take urgent action to resolve the issues with the 8:30am and 9:30am 175 buses from Citywest which frequently fail to show up, with no prior announcement on the real time system or the website of a company (details supplied); and if he will make a statement on the matter. [58050/22]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; I am not involved in the day-to-day operations of the Agencies under my remit.
Therefore, I have forwarded the Deputy's question in relation to the number of whole-time equivalent positions in the National Transport Authority (NTA) in each of the past five years to the Authority for direct reply. Please advise my private office if you do not receive a response within ten working days.
A referred reply was forwarded to the Deputy under Standing Order 51
Road Projects
Ceisteanna (230)
Jackie Cahill
Ceist:230. Deputy Jackie Cahill asked the Minister for Transport if a 2+2 lane dual carriageway is being considered for the N24 road improvement scheme between Cahir and Pallasgreen in County Tipperary; and if he will make a statement on the matter. [58060/22]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise you on the status of this project.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
A referred reply was forwarded to the Deputy under Standing Order 51
Road Tolls
Ceisteanna (231)
Bernard Durkan
Ceist:231. Deputy Bernard J. Durkan asked the Minister for Transport the total amount paid in tolls in the past five years to date in regard to all tolled locations throughout the country without exception; and if he will make a statement on the matter. [58121/22]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for overall policy and funding in relation to the national roads programme. Under the Roads Acts 1993-2015, the operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. Therefore, matters relating to the day to day operations regarding national roads, including toll roads and the establishment of a system of tolls, are within the remit of TII. More specifically, the statutory power to levy tolls, to make toll bye-laws and to enter into agreements with private investors are vested in TII under Part V of the Roads Act 1993 (as amended).
Noting the above position, I have referred the question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
With regard to the East Link Bridge, that is the responsibility of Dublin City Council and I have Minister has no function in relation to it. For details on tolling revenue for this bridge, I would advise you to contact Dublin City Council.
A referred reply was forwarded to the Deputy under Standing Order 51
National Transport Authority
Ceisteanna (232)
Catherine Murphy
Ceist:232. Deputy Catherine Murphy asked the Minister for Transport if his Department and the NTA conduct gender and age audits of the NTA’s transport projects in the context of bus, rail, light rail, PSVs and sustainable travel methods, including walking; and if he will provide a schedule of audits and the dates on which they were conducted and locations. [58160/22]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; I am not involved in the day-to-day operations of the Agencies under my remit.
Therefore, I have forwarded the Deputy's question in relation to the number of whole-time equivalent positions in the National Transport Authority (NTA) in each of the past five years to the Authority for direct reply. Please advise my private office if you do not receive a response within ten working days.
A referred reply was forwarded to the Deputy under Standing Order 51
Environmental Schemes
Ceisteanna (233)
Seán Sherlock
Ceist:233. Deputy Sean Sherlock asked the Minister for Transport if it expected that the low emissions vehicle toll incentive scheme will be extended given that it is due to end on 31 December 2022. [58164/22]
Amharc ar fhreagraFreagraí scríofa
Providing a sustainable, low-carbon transport system is a key priority of my Department.
The Low Emission Vehicle Toll Incentive (LEVTI) Scheme was introduced in July 2018 and offers toll discounts for alternatively fuelled vehicles. BEV and PHEVs qualify for 50% and 25% toll reductions respectively up to a maximum €500 annual threshold for private vehicles and a maximum annual threshold of €1,000 for commercial vehicles (greater off-peak rates also apply to the M50 toll). The Scheme was expanded in 2020 to include toll reductions for electric motorbikes, hydrogen fuelled passenger cars and SPSVs, and heavy duty vehicles (trucks, buses and coaches) fuelled by compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen or electricity.
I am pleased to note that the scheme will continue in 2023 with discussions around the terms and conditions ongoing.
Road Tolls
Ceisteanna (234, 235)
Darren O'Rourke
Ceist:234. Deputy Darren O'Rourke asked the Minister for Transport if he was consulted about the proposed increase in toll charges; if he supports increasing toll charges at this time; and if he will make a statement on the matter. [58167/22]
Amharc ar fhreagraDarren O'Rourke
Ceist:235. Deputy Darren O'Rourke asked the Minister for Transport the total amount paid to toll operators in Ireland in relation to traffic guarantee clauses in the years 2020, 2021 and to date in 2022, in tabular form; and if he will make a statement on the matter. [58168/22]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 234 and 235 together.
As Minister for Transport, I have responsibility for overall policy and funding in relation to the national roads programme. Under the Roads Acts 1993-2015, the operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. Therefore, matters relating to the day-to-day operations regarding national roads, including toll roads and the establishment of a system of tolls, are a statutory function of TII. More specifically, the statutory power to levy tolls, to make toll Bye-Laws and to enter into agreements with private investors are vested in TII under Part V of the Roads Act 1993 (as amended). The Act does not provide for a consultative function with the Minister in relation to specific toll increases.
With regard to the payment mechanism associated with toll operations, it is governed by the Bye-Laws which exist for each tolling scheme. Additionally, in the case of the privately-operated toll schemes, there are contracts which are commercial agreements between TII and the Public Private Partnership (PPP) concessionaires concerned. The individual Bye-Laws for each scheme governs how toll increases may take place, which is in line with the Consumer Price Index. In addition to funding the operations and maintenance of the roads concerned, toll revenues also support the protection and renewal of the wider national road network.
Noting the above position, I have referred the question to TII for a direct reply as to the total amount paid to toll operators. Please advise my private office if you do not receive a reply within 10 working days.
A referred reply was forwarded to the Deputy under Standing Order 51
Question No. 235 answered with Question No. 234.
Fuel Prices
Ceisteanna (236)
Niamh Smyth
Ceist:236. Deputy Niamh Smyth asked the Minister for Finance if he will review correspondence (details supplied); and if he will make a statement on the matter. [58007/22]
Amharc ar fhreagraFreagraí scríofa
Ireland’s taxation of fuel is governed by European Union law as set out in Directive 2003/96/EC, commonly known as the Energy Tax Directive (ETD). The ETD prescribes minimum tax rates for fuel with which all Member States must comply. There are three national legislative frameworks which provide for the charging of excise duty on different fuel types in the State. Firstly, ETD provisions in relation to liquid fuels used for motor or heating purposes are transposed into national law in Finance Act 1999. This law provides for the application of excise duty in the form of Mineral Oil Tax (MOT) to liquid fuels. It also provides for the application of MOT to natural gas used for propellant purposes, referred to as Mineral Oil Tax on Vehicle Gas (MOTVG). Secondly, Natural Gas Carbon Tax (NGCT) law, as set out in Finance Act 2010, provides for the taxation of natural gas used for non-propellant purposes. Finally, regarding solid fuel, the ETD mandates that coal be subject to taxation. Finance Act 2010 provides for Solid Fuel Carbon Tax (SFCT) to apply to coal and also to peat and peat products.
MOT is comprised of a non-carbon component and a carbon component with the carbon component being commonly referred to as carbon tax. The non-carbon component of MOT is often referred to as “excise”, “fuel excise”, “fuel tax” or “fuel duty” but it is important to note that both components are part of MOT which is an excise duty. NGCT and SFCT are also excise duties, but they are “pure” carbon taxes in that they do not comprise any non-carbon component. MOT, NGCT and SFCT rates are published on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/energy-excise-duty-rates.pdf.
Under MOT law any liquid, other than those prescribed in law, that is used as a motor or heating fuel is defined as a substitute fuel. Advanced synthetic fuels and biofuels are substitute fuels. Where a substitute fuel is used in place of a propellant fuel, it is subject to MOT at the MOT rate that applies to the fuel it is used in place of. For example, a substitute fuel used in place of auto-diesel in a motor vehicle would be taxed at the MOT rate for auto-diesel. A substitute fuel used for non-propellant purposes such as heating is chargeable, under section 96(2A)(c) of Finance Act 1999, at the MOT rate that applies to Marked Gas Oil (MGO), currently €111.14 per 1,000 litres. If a substitute fuel is produced from biomass, it qualifies for relief from the MOT carbon component. If an advanced synthetic fuel meets the criteria of being produced from biomass it would qualify for relief from the MOT carbon component.
Under MOT law, the carbon component of MOT is fully relieved for liquid biofuels and biogas that are produced from biomass. Section 94 of finance Act 1999 defines biomass as the biodegradable fraction of products, waste and residues from agriculture (including vegetal and animal substances), forestry and related industries, as well as the biodegradable fraction of industrial and municipal waste. Where a liquid biofuel, or a biogas, meets the criteria of being produced entirely from biomass, it is liable for the non-carbon component of MOT only, i.e. no carbon tax applies. With regard to blended fuels produced partially from biomass, the relief applies to the portion of fuel that meets the biofuel criteria set out in MOT legislation.
As already mentioned, biogas used for propellant purposes qualifies for relief from the MOT carbon component. Natural gas used for non-propellant purposes is subject to NGCT. However, biogas used in place of natural gas for non-propellant purposes falls outside the scope of NGCT meaning that it is not subject to fuel taxation, i.e. no carbon tax applies.
With regard to SFCT, a partial relief is available for biomass products. For the purposes of SFCT, biomass products are defined as any solid fuel product with a biomass content of 30 per cent or more. The rate of SFCT relief depends on the biomass proportion of the product and full details are published on the Revenue website at www.revenue.ie/en/companies-and-charities/excise-and-licences/energy-taxes/solid-fuel-carbon-tax/rate-of-tax.aspx
The biofuel reliefs and exclusions from MOT carbon tax, NGCT and SFCT are intended to promote a higher level of biofuel usage for motor and heating purposes and support Government’s commitment to incentivising more environmentally friendly alternatives to fossil fuels. The carbon tax reliefs and exclusions result in biofuels that are subject to SFCT being partially insulated from the ten-year trajectory of carbon tax increases which was introduced in Finance Act 2020. With regard to MOT and NGCT, biofuels are not impacted by the ten-year trajectory. This means that as annual carbon tax increases are implemented, the differential in tax costs between biofuels and fossil fuels will continue to widen, further incentivising the uptake of biofuels.
In order to understand and address any potential misinformation circulating about this matter Revenue was recently in touch with the oils industry and is currently preparing some further clarificatory information on biofuels and MOT to be published on its website in the coming days. I am further advised that Revenue’s “Mineral Oil Tax Warehouse Return User Guide” provides details for the industry on how biofuels blended with other fuels are to be accounted for. This guide is published at www.revenue.ie/en/companies-and-charities/documents/excise/energy-taxes/mineral-oil-tax-warehouse-return-user-guide.pdf.
Official Travel
Ceisteanna (237)
Carol Nolan
Ceist:237. Deputy Carol Nolan asked the Minister for Finance if he or any officials from his Department or from bodies under the aegis of his Department travelled to the Sharm el-Sheikh Climate Change Conference; the number who travelled; the costs incurred; and if he will make a statement on the matter. [57314/22]
Amharc ar fhreagraFreagraí scríofa
Ireland is represented at the COP27 climate conference in Sharm el-Sheikh by a national delegation led by the Minister for Environment, Climate, and Communications, Mr. Eamon Ryan T.D. and comprised of officials from six Government Departments.
Two officials from the Department of Finance attended, and no officials from any of the State bodies under the aegis of my Department travelled.
The costs incurred from participation in COP27 are not yet known.
Insurance Coverage
Ceisteanna (238)
Niall Collins
Ceist:238. Deputy Niall Collins asked the Minister for Finance if he will provide an update on any help or initiatives being undertaken to help owners of thatched properties get insurance for these properties; and if he will make a statement on the matter. [57362/22]
Amharc ar fhreagraFreagraí scríofa
While neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, I can assure the Deputy that this Government is committed to improving the cost and availability of insurance for all consumers, businesses and community groups across the State.
The whole-of-Government approach being taken through the Action Plan for Insurance Reform sets out 66 actions, which aim to improve both the cost and availability of this key financial service. The recently published third implementation report shows that 90 per cent of these actions are now being delivered.
The Deputy may be aware that the Department of Housing, Local Government and Heritage is currently undertaking a consultation into thatched properties and that insurance will form part of this. Owners of thatched buildings have been invited to contribute to the study and it is scheduled to conclude by the end of 2022. Any queries relating to this should be directed to the Department of Housing, Local Government and Heritage and my officials will continue to liaise closely with their counterparts on the issue.
As part of the effort to increase competition, the Department of Finance is working closely with the IDA to bring new entrants into the Irish insurance market, including in areas which have been identified as ‘pinch-points’ where capacity issues exist. The IDA will seek to leverage the achievements of the Government insurance reform agenda to date. Separately, my officials have informed me that there are insurance companies and brokers that currently offer cover for thatched properties, and that others are considering entering the market. We will continue to monitor developments in this area.
Finally, I would like to take this opportunity to assure the Deputy that securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland, including for thatched properties, remains a key policy priority for this Government.
Business Supports
Ceisteanna (239)
Mattie McGrath
Ceist:239. Deputy Mattie McGrath asked the Minister for Finance the reason that the temporary business energy support scheme excludes businesses whose main source of energy is oil, particularly in rural areas where gas is not available (details supplied); if he will modify the scheme to include such businesses; and if he will make a statement on the matter. [57436/22]
Amharc ar fhreagraFreagraí scríofa
Details of the new Temporary Business Energy Support Scheme (TBESS) are set out in Finance Bill 2022. The scheme will provide support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 28 February 2023 and will be available to tax compliant businesses carrying on a trade or profession the profits of which are chargeable to tax under Case I or Case II of Schedule D where they meet the eligibility criteria.
The TBESS operates by reference to bills for the metered supply of natural gas and electricity. The scheme is designed around determining increases in unit prices and actual consumption for the period in which a claim is made compared with a reference period that is 12 months prior to the claim period concerned. It is aimed at businesses whose average unit gas or electricity price has risen by over 50% for the relevant billing period between September 2022 and February 2023, as compared with their average unit gas or electricity price in for the corresponding reference period in the previous year. The scheme is based on information made available through electricity and gas meters, identifiable by a Meter Point Reference Number (MPRN) in the case of electricity, or a Gas Point Reference Number (GPRN) in the case of gas.
Payments will be made on the basis of 40% of the amount of the increase in eligible electricity or natural gas costs between the bill amount which is the subject of the claim and the bill amount in the corresponding reference period in the previous year, subject to a monthly cap on payments of €10,000 per trade or profession. The monthly cap may be increased where a business carries on its trade or profession from more than one location, as identified by the business having multiple electricity accounts/ MPRNs in different locations. The cap may be increased by €10,000 per electricity account/ MPRN, subject to an overall monthly cap of €30,000 per trade or profession. The increased cap is available in relation to both electricity and natural gas costs relating to the trade or profession. An overall cap on the amount of support that a business can claim will also apply in line with requirements of the European Commission’s Temporary Crisis Framework.
For energy sources such as oil and LPG which are not provided through a metered supply, it would not be possible to accurately determine the actual usage for each monthly claim period, the relevant unit price for each claim period, or the actual increase in that unit price and usage over the same period in the reference period.
Revenue has published comprehensive guidelines on the operation of the scheme, which includes information on eligibility for the scheme and how claims may be made. The guidelines are available on the Revenue website.
Tax Code
Ceisteanna (240)
Emer Higgins
Ceist:240. Deputy Emer Higgins asked the Minister for Finance if he will consider introducing a two-tiered BIK system based on a person’s income, given the impact that the BIK changes introduced in Budget 2023 will have on workers during the cost-of-living crisis; and if he will make a statement on the matter. [57640/22]
Amharc ar fhreagraFreagraí scríofa
For clarity, I did not make any changes in Budget 2023 to existing benefit-in-kind (BIK) provisions that would negatively impact on the application of benefit-in-kind for workers. Rather, I amended two specific measures to further enhance the BIK treatment applicable to employees.
Firstly, the relief provided for in section 112B of the Taxes Consolidation Act 1997 (TCA), which is commonly referred to as the Small Benefit Exemption, was enhanced by increasing both the value and number of qualifying incentives that can be provided tax free by employers under this scheme, from €500 to €1,000 and one to two incentives respectively. This change will apply for the 2022 tax year and subsequent years. In addition, I introduced a higher exemption limit where an employer provides a cargo bike and related safety equipment to an employee under the Cycle to Work scheme, with the BIK exemption limit in respect of a cargo bike and safety equipment increased to €3,000 (with a limit of €1,250 and €1,500 for e-bikes applicable).
I made changes to the calculation of benefit-in-kind on employer provided vehicles, in section 6 of the Finance Act 2019. This measure is due to commence from 1 January 2023, and it is therefore assumed that the query is referring to the implementation of these new rules applying to the calculation of BIK in respect of employer provided cars to employees, for the tax year 2023 and subsequent years. This is a key part of Government policy to strengthen the environmental rationale behind employer-provided car taxation, as committed to in the Climate Action Plan.
Broadly, new rates of benefit-in-kind will apply to the provision of a company car, from 1 January 2023, which among existing factors will now take into account the CO2 emissions of the car, its original market value and the number of business kilometres travelled annually. Therefore, lower rates of tax will generally apply to cars that are more environmentally friendly. The early announcement of this measure in Budget 2020 was purposely provided to send an advanced signal to industry and allow for typical lease renewal periods of approximately 3 years.
It should also be noted that the charge to BIK is not related to an employee’s income. It is a charge for the benefit that an employee derives from the private use of an employer provided vehicle, thus explaining the rationale for the current approach.
In summary, this new BIK regime in respect of employer provided vehicles has an environmental rationale and is designed to incentivise the use of more environmentally friendly vehicles. It thereby seeks to change behaviours to get lower emissions vehicles, in particular EVs, into greater usage.
I have no proposals to make any change to the new BIK regime.
Finally, I am advised by Revenue that further information on the taxation of employer-provided vehicles is included in Tax and Duty Manual Part 05- 01-01b, which is available on the Revenue website.
Agriculture Supports
Ceisteanna (241)
Matt Carthy
Ceist:241. Deputy Matt Carthy asked the Minister for Finance if the Government intends to extend stock relief for young, trained farmers beyond mid-2023; and if he will make a statement on the matter. [57809/22]
Amharc ar fhreagraFreagraí scríofa
Stock relief is available to any person carrying on the trade of farming, the profits from which are chargeable to tax under Case I of Schedule D. The person may be an individual or a company, carrying on the trade either solely or in partnership. The amount of stock relief is equal to 25% of the amount by which the value of farm trading stock at the end of an accounting period exceeds the value of farm trading stock at the beginning of the accounting period. The relief is given in the form of a deductible trading expense for the relevant accounting period. General stock relief was extended in Finance Act 2021 to 31 December 2024.
A scheme of enhanced stock relief at the rate of 100% is available under section 667B of the Taxes Consolidation Act (TCA) 1997 for qualifying farmers (who are generally referred to as young, trained farmers) and stock relief at the rate of 50% is available for farmers who are members of a registered farm partnership under section 667C of the TCA 1997. Young trained farmers in a registered farm partnership may claim enhanced stock relief at a rate of 100%. These two reliefs are being extended to 30 June 2023.
Unlike general stock relief, these reliefs are permissible forms of state aid and approval for the relief to be operated is granted in accordance with the EU's current Agricultural Block Exemption Regulation (ABER). The current ABER is due to expire on 31 December 2022, and the 6 month extension to this relief reflects the transitional provisions provided for within the current ABER which allow any exempted schemes to remain exempted during an adjustment period of six months.
The intention is that, once the new ABER is agreed, the relief will be extended to 31 December 2024 so as to align with general stock relief again.
Covid-19 Pandemic Supports
Ceisteanna (242)
Catherine Murphy
Ceist:242. Deputy Catherine Murphy asked the Minister for Finance the way in which in a person’s tax liability in respect of PUP is calculated if they are married and self-employed; if he will clarify the person liable to cover the liability (details supplied). [57871/22]
Amharc ar fhreagraFreagraí scríofa
Pandemic Unemployment Payments (PUP) are classified in legislation as income supports and as such are subject to income tax but are exempt from the Universal Social Charge (USC) and Pay Related Social Insurance (PRSI). This is the case whether the recipient of the PUP was either a former PAYE worker or a person who was previously self-employed.
The PUP was not taxed in the normal ‘real-time’ manner in 2020, meaning the collection of any tax due was deferred until year end. This approach was adopted to ensure that payments reached recipients as quickly as possible, given the suddenness of the pandemic and in the expectation at the time that the emergency supports would be short-term in nature, which turned out not to be the case due to the continued prevalence of COVID-19.
From 2021, the mechanism to tax the PUP, in common with other Department of Social Protection (DSP) payments, including Jobseeker's’ Benefit and Illness Benefit, was to reduce the recipient’s tax credits and rate bands, ensuring as far as possible, that the right amount of tax is collected at the right time.
The taxation of the PUP in real time in 2021 meant that, for PAYE employees, the tax credits of the person receiving the payment were reduced to take account of the PUP. However, there are differences in how the taxation of DSP payments, including the PUP, is handled for self-assessed taxpayers. In particular, for self-assessed taxpayers where neither they nor their spouse have a PAYE income, the tax credits of the person receiving the DSP payment would not be adjusted. This reflects the position that, for self-assessed taxpayers who do not have any PAYE income, their tax credits are offset against the tax due when their return is submitted after the end of the tax year. Tax due on any taxable DSP payments they may have received is calculated when they submit their income tax return for the year.
Where the person, or their spouse has an active PAYE employment on record, their tax credits will generally be adjusted to reflect the impact of the tax due on the DSP payment.
In the case of a PAYE worker, jointly assessed with a self-assessed spouse, the tax credits allocated to the PAYE spouse’s employment are adjusted to collect the tax on the DSP income. While in most cases the credits of the PAYE spouse will be adjusted, there may be some scenarios where the PAYE spouse’s credits may not be affected. This approach is a longstanding one that operates in all cases involving jointly assessed couples and civil partnerships, where one spouse/civil partner is in self-employment and the other is taxed through the PAYE system.
State Savings Schemes
Ceisteanna (243)
Neale Richmond
Ceist:243. Deputy Neale Richmond asked the Minister for Finance his views on whether Ireland should have an individual savings allowance system, including the stocks and shares individual savings allowance as is the case in the United Kingdom; and if he will make a statement on the matter. [57937/22]
Amharc ar fhreagraFreagraí scríofa
I note the Deputy's query in relation to the introduction of a scheme in Ireland similar to the UK ISA scheme. In this regard, I would highlight that the National Treasury Management Agency (NTMA), through State Savings products, already offers a wide range of tax free savings products to the general public, including Prize Bonds and fixed rate savings bonds/certificates. Both short term and long term fixed rate products are offered, with maturities from 3 to 10 years.
The interest rates on offer are competitive and provide good value for the holders of State Savings products. The return for the saver rewards those who hold products to maturity. However, early redemption is also possible.
The currently available tax-free State Savings products therefore allow the saver to invest in a competitive, flexible product which is tax free and afforded full State protection. The NTMA keeps these products under review.
More generally, tax policy and legislation, including savings tax, is reviewed by the Tax Strategy Group (TSG), as part of the annual Budget and Finance Bill process, and is considered in the wider policy context.