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Gnáthamharc

Tuesday, 31 Jan 2023

Written Answers Nos. 242-261

Rental Sector

Ceisteanna (242)

Richard Bruton

Ceist:

242. Deputy Richard Bruton asked the Minister for Finance if he is concerned by the rapid exit of very small landlords from the housing market, who typically have rent added to personal income to be taxed at the top rate; if restrictions still remain on the allowability of interest payments, or other legitimate expenses: and if his Department is considering the scope to build on the concessions outlined in Budget 2023 in order to consolidate supply in the market. [3929/23]

Amharc ar fhreagra

Freagraí scríofa

The Government is acutely aware of the difficulties in the housing market. As I have said on many occasions, the key problem is a lack of supply. This is why the Government is committed to increasing the supply of all types of homes – social, affordable, rental and owner-occupier.

My department continues to monitor all aspects of the property market, including the number of landlords in the rental sector. Central Statistics Office research on The Rental Sector in Ireland found that the total number of landlords in the market has reduced from approximately 170,000 in 2018 to 157,000 in 2021. The research also found that in 2018, landlords with only one or two tenancies accounted for 84 per cent of all landlords. Therefore, small scale landlords likely make up the majority of landlords who have decided to exit the market in recent years.

The exiting of small landlords from the private rental sector is a consequence of multiple factors. A changing regulatory environment which has been necessary to ensure a fair and effective residential rental sector that balances tenants' rights and landlords' responsibilities has resulted in a challenging compliance framework for some. The recent rise in house prices has also prompted some landlords to sell their rental properties in the absence of negative equity.

This raises concerns about the supply of rental properties. However, as part of the Housing for All action plan update published last November, the Department of Housing, Local Government and Heritage will commission a comprehensive review of the private rental sector. This review will take into account the significant regulatory changes over the past several years and will ensure that our housing system provides an efficient, affordable, safe and secure framework for both landlords and tenants.

The Government's Housing for All strategy also commits to delivering a total of 18,000 cost rental homes over the period to 2030. We continue to monitor how many small-scale landlords remain in the market and the Government will continue to work to increase the supply of public rental accommodation and review the private rental sector so that it works effectively for both landlords and tenants.

After deduction of allowable letting expenses, rental income is subject to tax as part of the total taxable income of the landlord. Individual landlords may be subject to income tax at their marginal rate of tax in addition to which USC and PRSI will also apply.

Corporate landlords are liable to corporation tax at 25%, and a further 20% “close company surcharge” may also apply where the rental profits are held within the company.

Specific tax rules apply to other entities such as REITs and funds.

In relation to mortgage interest relief for landlords, the position is that with effect from 1 January 2019, 100 per cent of the interest may be deducted on mortgages for residential rental properties.

In relation to other costs, deductible expenses include:

- The cost to the landlord of any goods provided or services rendered to a tenant.

- Cost of maintenance, repairs, insurance and management of the property. In the case of properties in managed estates or apartment buildings, this includes the annual management fee.

- The cost of registering a residential tenancy with the RTB.

- Cost of letting, including letting agency fees.

- Wear and tear allowance are available in respect of furniture, fixtures and fittings provided by a landlord. These allowances are granted at the rate of 12.5% per annum over a period of 8 years.

In addition, owners of rental properties are entitled to claim deductions up to €10,000 against rental income from that premises for various expenses incurred prior to it being first let after a six-month period of non-occupancy. These expenses include any rent payable in respect of the premises, general repairs and maintenance (capital expenditure excluded), insurance and management fees, rates, service charges, accountancy fees and certain mortgage protection policy premiums.

In relation to tax measures more generally, our recent history suggests that a cautious approach is warranted.

Decisions regarding tax incentives and reliefs are normally made in the context of the annual Budget and Finance Bill process. Such decisions must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines. The guidelines make clear that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures, where a tax-based incentive is more efficient than a direct expenditure intervention. Tax reliefs, no matter how worthwhile in themselves, may serve to narrow the tax base and can make general reform of the tax system that much more difficult.

I will continue to work with my colleagues in Government to ensure that any further interventions in the housing market are appropriately calibrated, represent the best use of scarce public resources and boost the supply of housing in both the public and private sectors.

Customs and Excise

Ceisteanna (243, 269)

Ged Nash

Ceist:

243. Deputy Ged Nash asked the Minister for Finance if he is giving consideration to extending the cut to excise duty on petrol and diesel beyond the end of February 2023; and if he will make a statement on the matter. [3950/23]

Amharc ar fhreagra

Carol Nolan

Ceist:

269. Deputy Carol Nolan asked the Minister for Finance if measures to offset the rising cost of fuel through a reduction in excise duty on fuels, a reduction of 20 cents on petrol and 15 cents on diesel fuel, will be continued for the duration of 2023; and if he will make a statement on the matter. [4339/23]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 243 and 269 together.

As the Deputies will be aware, these reduced rates are set to expire on 28th February 2023. In making any decision the Government will balance the costs of the measures in question against their social and economic impact. This matter is currently being considered.

Exchequer Payments

Ceisteanna (244)

Patricia Ryan

Ceist:

244. Deputy Patricia Ryan asked the Minister for Finance his plans to ensure there is no repeat of the unauthorised release of funds from the central fund of the Exchequer which took place on 28 October 2022 [3981/23]

Amharc ar fhreagra

Freagraí scríofa

The Secretary General and I fully accept the findings of the Comptroller and Auditor General (C&AG) report into this matter, and my Department have taken immediate steps to prevent a recurrence.

For background, the Department of Finance administers the Exchequer account (Central Fund), by issuing payment instructions to the Central Bank. Instructions must have prior authorisation from the Comptroller and Auditor General via a ‘credit’.

In December 2021, my Department put a ‘supply service credit’ in place for €53.2bn. On 28th October there was a grant of credit remaining of €1.8bn, when a payment instruction was issued that breached that limit. The grant of credit limit was not checked prior to the payment instruction being issued to the Central Bank. Furthermore, under the procedures at the time, the Central Bank did not check that sufficient credit was in place and proceeded to make the payment.

My Department fully accept that this is a serious matter, although it is important to stress that there was no error in the processing of payments, no risk of misallocated or overdrawn funds and no risk to the monies in the Exchequer account.

The C&AG was informed by the Department of the incident on the following business day, (1st of November). Subsequently, on the 3rd of November, following a request from the Minister of Finance, the C&AG issued a new supply services credit for 2022 for €14.8 billion.

At the behest of the Secretary General a report into the incident was carried out by an Assistant Secretary from outside the Division. The report made a number of recommendations, which have all now been implemented. They include:

- All staff in the section have now been made fully aware of the credits that are required during the year.

- The process used to track credits has been improved whereby all users will be warned when the grant of credit has fallen below a certain amount (€5 billion).

- Users will be prompted at the appropriate time to ensure that the ‘Vote to Complete’ credit is in place before the payment instruction is made.

- Procedures have been changed to ensure that the remaining limit on the grant of credit will accompany the payment instruction when it is sent for approval. This will take into account any other prior payment instructions issued that day.

- A report has been developed to show the current supply services grant of credit limit and its usage.

- All manuals, training and instructions have been amended to reflect these improvements.

- The introduction of a "four-eyes" principle between my Department and the Central Bank, in which credits are checked by both organisations

Departmental Meetings

Ceisteanna (245, 246)

Colm Burke

Ceist:

245. Deputy Colm Burke asked the Minister for Finance if officials within his Department have met with representatives of the tobacco industry, contrary to Article 5.3 of the WHO Framework Convention on Tobacco Control, which Ireland has ratified (details supplied); if so, the details of such meetings; and if he will make a statement on the matter. [3989/23]

Amharc ar fhreagra

Colm Burke

Ceist:

246. Deputy Colm Burke asked the Minister for Finance if officials within his Department do not meet with representatives of the tobacco industry, in adherence to Article 5.3 of the WHO Framework Convention on Tobacco Control, which Ireland has ratified (details supplied); and if he will make a statement on the matter. [3990/23]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 245 and 246 together.

I am aware of Article 5.3 of the World Health Organisation’s Framework Convention on Tobacco Control (FCTC), which states: "In setting and implementing their public health policies with respect to tobacco control, Parties shall act to protect these policies from commercial and other vested interests of the tobacco industry in accordance with national law."

In the context of public health policy, interactions with the tobacco industry should be limited and where interactions do take place, they should be conducted with maximum transparency in line with FCTC guidelines. The guidelines apply to setting and implementing Parties’ public health policies with respect to tobacco control. They also apply to persons, bodies or entities that contribute to, or could contribute to, the formulation, implementation, administration or enforcement of those policies. The Department of Health holds primacy in the development and promotion of public health policies.

Officials in my Department have limited engagement with the tobacco industry. Each year, industry representatives send pre-Budget submissions to the Department of Finance. These submissions are high level and typically give an overall view of market trends, including in relation to illicit tobacco and non-Irish duty paid tobacco in Ireland. On occasion, these representatives have met with Department of Finance officials to present their submissions. All interactions with the tobacco industry are accountable and transparent. The formulation and implementation of public health policies for tobacco control are not discussed with tobacco industry representatives, nor is any other information in relation to work being done by the Department of Finance.

I, and my officials, have responsibility for the taxation element of tobacco public health policy. Ireland currently has the highest rate of excise duty on tobacco products in the EU. This reflects a long-standing policy of levying high rates of excise duty on tobacco products to meet public health targets and to encourage people to quit smoking. Rate increases of 50 cent on 20 pack cigarettes (Most Popular Price Category) have been implemented in each of the last 8 budgets with pro rata or higher increases applied to Roll Your Own. It is clear that the limited interactions that the Department of Finance has with the tobacco industry has not impacted the taxation element of public health polices for tobacco. Other elements of public health polices are the responsibility of my colleague, the Minister for Health.

Question No. 246 answered with Question No. 245.

Business Supports

Ceisteanna (247)

Jennifer Murnane O'Connor

Ceist:

247. Deputy Jennifer Murnane O'Connor asked the Minister for Finance if he will address a matter in relation to the temporary business energy support scheme (details supplied) and the application of same to the charity sector; and if he will make a statement on the matter. [3998/23]

Amharc ar fhreagra

Freagraí scríofa

The Temporary Business Energy Support Scheme (TBESS) was introduced to support qualifying businesses with increases in their electricity or natural gas costs over the winter months.

Sections 100 to 102 of the Finance Act 2022 make provision for the TBESS. The scheme provides support to qualifying businesses - including companies, sole-traders, self-employed individuals and partnerships - in respect of energy costs relating to the period from 1 September 2022 to 28 February 2023.

A charity that carries on a trade, the profits or gains arising from which would be chargeable to tax under Case I of Schedule D, but for the exemption provided for section 208(2)(b) of the Taxes Consolidation Act 1997, will be regarded as an eligible business under the TBESS as regards that trading activity.

Where a charity is engaged in a number of activities, only some of which would be regarded as trading activities, then only the electricity and gas costs relevant to that activity may be eligible for support under the TBESS. Only metered gas and electricity costs incurred by the charity in respect of a location where the activities of a trade are carried on may be included in a claim under the scheme. This may require apportionment of costs between those activities that are trading in nature and those that are not.

Not for profit organisations that do not carry on a trade that is chargeable to tax, or that would be chargeable to tax but for the tax exemption referred to above, such organisations are not within the scope of the TBESS.

However, as the Deputy may be aware, there are other schemes which are aimed at assisting the community and voluntary sector with energy costs, such as the Community and Voluntary Energy Support Scheme (CVESS) which is under the auspices of the Department of Rural and Community Development.

Tax Data

Ceisteanna (248, 272)

Paul Kehoe

Ceist:

248. Deputy Paul Kehoe asked the Minister for Finance the total receipts from the 2% betting tax for 2019, 2020 and 2021; the breakdown between retail, online and phone betting amounts, respectively; and if he will make a statement on the matter. [4015/23]

Amharc ar fhreagra

Paul Kehoe

Ceist:

272. Deputy Paul Kehoe asked the Minister for Finance the total receipts from the 2% betting tax for 2022; the breakdown between retail, online and phone betting amounts, respectively; and if he will make a statement on the matter. [4497/23]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 248 and 272 together.

I am advised by Revenue that Betting Duty is charged on all bets placed by a person with a Licensed Bookmaker (Traditional Licence), a Licensed Remote Bookmaker (Remote Licence) or a Licensed Remote Betting Intermediary (Commissions Licence). The rate of Betting Duty charged on bets placed with holders of a Traditional and/or Remote Licence is 2%, while the rate of Betting Duty applicable to commissions charged by licensed intermediaries is 25%.

The receipts for 2019 to 2021 and the provisional receipts for 2022 in respect of Betting Duty broken down by licence type are provided in the table below:

Betting Duty Collected €m

Traditional Licence

Traditional Licence

Remote Licence

Commissions Licence

Year

In-house

Phone

Online

Online

2019

51.888

0.001

40.622

2.501

2020

39.013

0.008

44.935

2.815

2021

24.362

0.018

60.550

4.197

2022*

46.988

0.012

50.750

4.120

* 2022 values are provisional and may be subject to revision.

Business Supports

Ceisteanna (249, 250)

John Paul Phelan

Ceist:

249. Deputy John Paul Phelan asked the Minister for Finance if the Covid-19 loan scheme is being replaced by another similar type of loan, rather than a sudden wind-up of the scheme, given that the scheme has now finished; and if he will make a statement on the matter. [4022/23]

Amharc ar fhreagra

John Paul Phelan

Ceist:

250. Deputy John Paul Phelan asked the Minister for Finance if the Brexit impact loan scheme is being replaced by another similar type of loan, rather than a sudden wind-up of the scheme, given that the scheme has now finished; and if he will make a statement on the matter. [4023/23]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 249 and 250 together.

As both concern credit guarantee schemes operated by the Strategic Banking Co-operation of Ireland (SBCI), I propose to take the Deputy’s questions, PQ 4022/23 and PQ 4023/23, together.

As the Deputy will be aware, the Covid-19 Credit Guarantee Scheme (CCGS), operated by the SBCI in response to the challenges of the pandemic, was the largest loan guarantee scheme in the history of the State. This scheme provided €2 billion of additional credit capacity to SMEs and small mid-caps, including primary producers. The CCGS allowed loans with terms of up to five and a half years; and offered a range of lending products between €10,000 and €1 million. This scheme came to an end on 30 June 2022, due to the expiration of the EU Covid-19 Temporary State Aid Framework which underpinned the scheme.

The Brexit Impact Loan Scheme (BILS) to which the Deputy also refers was launched by the SBCI in October 2021. The BILS was designed to address the impact of Brexit on SMEs and small mid-caps, including primary producers. Its remit was extended to include a Covid Loan Scheme (CLS), which replaced the Covid-19 Credit Guarantee Scheme. The combined Brexit Impact Loan Scheme/Covid Loan Scheme was in place from 4 July to 31 December 2022; with a total lending capacity of €315 million.

While these schemes expired on 1 January 2023, I am pleased to advise the Deputy that the Ukraine Credit Guarantee Scheme (UCGS) was launched – 30 January 2023. This scheme, which unlocks €1.2 billion of low-cost, unsecured working capital, utilises the EU’s State Aid Temporary Crisis Framework to assist SMEs, Small Mid-caps and primary producers affected by the inflationary challenges being posed by the invasion of Ukraine by Russia.

In order to qualify for the scheme, the borrower will have to declare that costs have increased by a minimum of 10% on their 2020 figures and that the loan is being sought specifically as a result of difficulties being experienced due to the Ukraine crisis. Loan facilities ranging from €10,000 to €1 million will be available. Loans of up to €250,000 can be unsecured and can be used for overdrafts, working capital and term loan facilities.

The Deputy may also wish to note that the €500 million Growth and Sustainability Loan Scheme (GSLS) will be launched in Q2 2023. This scheme will be the successor scheme to the very successful Future Growth Loan Scheme (FGLS), which had made available up to €800 million in lending to assist long-term, strategic investment by eligible businesses, including in response to Brexit and Covid-19.

Similar to the FGLS, the GSLS will provide for loans of €25,000 to €3 million for terms of 7 to 10 years. Loans of up to €500,000 can be unsecured. The GSLS will be available to SMEs, including farmers and fishers, with maximum loans to mid-caps limited to €937,500 due to State Aid restrictions.

Under the GSLS, 70% of the lending volume will be provided for investment in business growth and sustainability, while a minimum of 30% of lending volume will be directed to investment in environmental sustainability. The SBCI will deliver the GSLS on behalf of the Minister for Enterprise, Trade and Employment and Minister for Agriculture, Food and the Marine.

Question No. 250 answered with Question No. 249.

Customs and Excise

Ceisteanna (251)

Robert Troy

Ceist:

251. Deputy Robert Troy asked the Minister for Finance the measures that are in place to ensure that materials from United Kingdom passing through Northern Ireland to the Republic of Ireland are captured for customs and excise to ensure a level playing field; and if he will make a statement on the matter. [4027/23]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that as provided for in the Protocol on Ireland and Northern Ireland, goods imported into Northern Ireland from the rest of the United Kingdom or any other third country are subject to EU Customs rules, procedures and formalities. The application and implementation of the Protocol, including the collection of Customs duties and other taxes, is the responsibility of the United Kingdom authorities with oversight from EU officials who have been carrying out this work in Northern Ireland since January 2021.

For goods destined for the Irish market, the Protocol allows for two Customs clearance options when bringing goods from Great Britain, through Northern Ireland. Traders can complete the import formalities, including the payment of any tax and duties owing, in Northern Ireland and then move the goods to Ireland or they can use the transit procedure to move the goods to an approved premises in Ireland and complete the import formalities in Ireland before the goods leave the approved premises.

Where goods are moved through Northern Ireland to Ireland under the transit procedure, import declarations are lodged to Revenue’s Automated Import System (AIS). All Customs declarations are risk analysed and Customs duties and other taxes, e.g., VAT, are secured before the goods are released from the approved premises. The clearance procedures are supplemented by Revenue’s compliance regime which includes Customs post-clearance checks and audits. This provides further assurance that traders comply with their tax and duty obligations.

Tax Code

Ceisteanna (252, 255, 265, 271, 280)

Ged Nash

Ceist:

252. Deputy Ged Nash asked the Minister for Finance his views on a VAT-related matter (details supplied); and if he will make a statement on the matter. [4042/23]

Amharc ar fhreagra

Fergus O'Dowd

Ceist:

255. Deputy Fergus O'Dowd asked the Minister for Finance his views on the concerns raised by a person (details supplied) in respect of the application of VAT for hairdressers; and if he will make a statement on the matter. [4071/23]

Amharc ar fhreagra

Colm Burke

Ceist:

265. Deputy Colm Burke asked the Minister for Finance to confirm that he will give serious consideration to retaining the 9% VAT rate on tourism and hospitality beyond 28 February 2023; and if he will make a statement on the matter. [4268/23]

Amharc ar fhreagra

Cathal Crowe

Ceist:

271. Deputy Cathal Crowe asked the Minister for Finance if he will consider halting the proposed VAT increase at the end of February 2023 to boost struggling businesses; and if a proposal (details supplied) for a further reduction will be considered; and if he will make a statement on the matter. [4496/23]

Amharc ar fhreagra

Paul Kehoe

Ceist:

280. Deputy Paul Kehoe asked the Minister for Finance if he will consider extending the 9% VAT rate for hairdressing services; if he is considering reducing the rate even further to 5%, as requested by industry leaders; and if he will make a statement on the matter. [4644/23]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 252, 255, 265, 271 and 280 together.

As the Deputies are aware, at present, the 9% rate applies on a temporary basis to a number of sectors in particular, tourism, hospitality and hairdressing. From 1 March 2023, these sectors are due to return to the 13.5% rate.

As I have said on a number of occasions, the Government will in the coming weeks examine the full suite of taxation and other measures that are due to expire at the end of February.

In making any decision the Government will balance the costs of the measures in question against their impact and the overall budgetary framework.

Vehicle Registration

Ceisteanna (253)

Michael Healy-Rae

Ceist:

253. Deputy Michael Healy-Rae asked the Minister for Finance if he will introduce personalised number plates for cars, given that this is common in other European Union member states and in the United Kingdom (details supplied); and if he will make a statement on the matter. [4060/23]

Amharc ar fhreagra

Freagraí scríofa

Under the Finance Act 1992, Revenue has responsibility for the assignment of vehicle identification marks (commonly known as registration numbers) and for prescribing the manner of their display (commonly known as registration plates) on vehicles in the State. This has been done in the “Vehicle Registration and Taxation Regulations 1992”, Statutory Instrument No. 318 of 1992, as amended.

The Regulations prescribe the format for a vehicle’s unique identification mark which, essentially, indicates the year and period when registered, the county, and the number assigned at registration, with these numbers generally being assigned in sequence. There is provision that, for a fee of €1,000, a vehicle owner may reserve a vehicle registration number, but this registration number must also comply with the prescribed format. The Regulations do not provide for personalised identification marks or registration plates, and the Irish system of prescribing identification marks does not lend itself to the introduction of such an arrangement.

The existing identification mark is integral to the operations of a number of agencies apart from Revenue, including An Garda Síochána, the Department of Transport, the Road Safety Authority, and Transport Infrastructure Ireland. Any change to the existing specification could only be undertaken after an assessment of the impact of such changes, including in relation to the systems and other changes that would be required. The Deputy’s suggestion has been raised a number of times over the years, but the systems development required, including to registration plate recognition systems, would be likely to far outweigh the potential benefits to the Exchequer from the possibility of charging higher fees for personalised numbers.

Tax Code

Ceisteanna (254)

Réada Cronin

Ceist:

254. Deputy Réada Cronin asked the Minister for Finance if his Department will examine the situation whereby a young worker, already struggling with exorbitant rent, the high cost of fuel, and a cost-of-living crisis generally, is now struggling even more, given the increases to benefit-on-kind on their company car, which they regard as essential to the fulfilment of their employment; and if he will make a statement on the matter. [4070/23]

Amharc ar fhreagra

Freagraí scríofa

Recent Government policy has focused on strengthening the environmental rationale behind company car taxation. Until the changes brought in as part of the Finance Act 2019, Ireland’s vehicle benefit-in-kind regime was unusual in that there was no overall CO2 rationale in the regime. This is despite a CO2 based vehicle BIK regime being legislated for as far back as 2008 (but never having been commenced).

In Finance Act 2019, a CO2-based BIK regime for company cars was legislated for from 1 January 2023. From the beginning of this year, the amount taxable as BIK is determined by the car’s original market value (OMV) and the annual business kilometres driven, while new CO2 emissions-based bands determines whether a standard, discounted, or surcharged rate is taxable.

In certain instances, this new regime will provide for higher BIK rates, for example in relation to above average emissions and high mileage cars. It should be noted, however, that the rates remain largely the same in the lower to mid mileage ranges for the average lower emission car. Additionally, EVs benefit from a preferential rate of BIK, ranging from 9 – 22.5% depending on mileage. Fossil-fuel vehicles are subject to higher BIK rates, up to 37.5%. This new structure with CO2-based discounts and surcharges is designed to incentivise employers to provide employees with low-emission cars.

I am aware that there have been arguments surrounding the mileage bands in the new BIK structure, as they can be perceived as incentivising higher mileage to avail of lower rates, leading to higher levels of emissions. The rationale behind the mileage bands is that the greater the business mileage, the more the car is a benefit to the company rather than its employee (on average); and the more the car depreciates in value, the less of a benefit it is to the employee (in years 2 and 3) as the asset from which the benefit is derived is depreciating faster. Mileage bands also ensure that cars that are more integral to the conduct of business receive preferential tax treatment.

I believe that better value for money for the taxpayer is achieved by curtailing the number of subsidies available and building an environmental rationale directly into the BIK regime. It was determined in this context that reforming the BIK system to include emissions bands provides for a more sustainable environmental rationale than the continuation of the current system with exemptions for electric vehicles (EVs). This brings the taxation system around company cars into step with other CO2-based motor taxes as well as the long-established CO2-based vehicle BIK regimes in other member states.

In addition to the above and in light of government commitments on climate change, Budget 2022 extended the preferential BIK treatment for EVs to end 2025 with a tapering mechanism on the vehicle value threshold. This means that the quantum of the relief is phased down from €50,000 in 2022, to €35,000 in 2023, €20,000 in 2024, and €10,000 in 2025. This BIK exemption forms part of a broader series of very generous measures to support the uptake of EVs, including a reduced rate of 7% VRT, a VRT relief of up to €5,000, low motor tax of €120 per annum, SEAI grants, discounted tolls fees, and 0% BIK on electric charging.

Finally, it should be noted that this new BIK charging mechanism was legislated for in 2019 and was announced as part of Budget 2020. I am satisfied that this has provided a sufficient lead in time to adapt to this new system before its recent implementation.

Question No. 255 answered with Question No. 252.

Departmental Schemes

Ceisteanna (256)

Jennifer Murnane O'Connor

Ceist:

256. Deputy Jennifer Murnane O'Connor asked the Minister for Finance if a review is currently being undertaken of the disabled drivers and disabled passengers (tax concessions) scheme; if so, the status of that review; and if he will make a statement on the matter. [4080/23]

Amharc ar fhreagra

Freagraí scríofa

My predecessor Minister Donohoe committed to a comprehensive review of the Disabled Drivers and Passengers Scheme (DDS) as part of a broader review of mobility supports. In order to achieve this objective, Minister O’Gorman agreed in September 2021 that the DDS review should be incorporated into the work of the National Disability Inclusion Strategy (NDIS) Transport Working Group (TWG).

The NDIS TWG was tasked, under Action 104 of the NDIS, with reviewing all Government-funded transport and mobility supports for those with a disability and for making proposals for transport and mobility solutions for those with a disability.

The Working Group, under the Chairpersonship of Minister of State Anne Rabbitte, held a number of meetings across 2022. A draft final report was considered at its final meeting on 8th December. It is expected the final report will be published soon.

As part of its engagement in this process, the Department of Finance established an information-gathering Criteria Sub-group (CSG) at the start of 2022. Its membership comprised of former members of the Disabled Drivers Medical Board of Appeal (DDMBA) and Principal Medical Officers (PMOs) in the HSE. Its purpose was to capture their experiences, expertise and perspectives in relation to the practical operational and administrative challenges of the DDS, as well as to explore what alternative vehicular arrangements were available for those with mobility issues based on international experience. The CSG work led to the production of five papers and a technical annex, submitted to the Department of Children, Equality, Disability, Integration and Youth in July 2022.

The main conclusion of the CSG is that the DDS needs to be replaced with a fit for purpose, needs-based vehicular adaptation scheme in line with best international practice.

This conclusion, together with design principles and parameters for the new scheme as based on international practice, were incorporated into a response to three questions posed in September 2022 to members of the NDIS Transport Working Group, in respect of proposals for enhanced, new and/or reconfigured supports to meet the transport and mobility needs for those with a disability.

I hope my Department's views with respect to introducing a new vehicular adaptation scheme, will be incorporated into the Working Group's final report.

Tax Code

Ceisteanna (257)

Michael Collins

Ceist:

257. Deputy Michael Collins asked the Minister for Finance if he will consider keeping the VAT rate at 9%; and if he will make a statement on the matter. [3879/23]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the Directive.

Currently, the 9% rate applies on a temporary basis to the hospitality and tourism sectors which includes the supply of hotel accommodation and the supply of meals in hotels (excluding alcohol and soft drinks) until 28 February 2023. From 1 March 2023, these sectors are due to return to the 13.5% rate. As I have said on a number of occasions, the government will in the coming weeks examine the full suite of taxation and other measures that are due to expire at the end of February.

Departmental Staff

Ceisteanna (258)

Mairéad Farrell

Ceist:

258. Deputy Mairéad Farrell asked the Minister for Finance the names of any advisers who have taken up employment in his Department since the Government rotation in December 2022; the annual salary they are being paid; and if he will make a statement on the matter. [4123/23]

Amharc ar fhreagra

Freagraí scríofa

I wish to advise the Deputy that there are currently two Special Advisers to the Minister employed by the Department of Finance:

- Kevin Barrett

- Grant Sweetnam

In line with DPER guidelines, both advisers are placed on the Principal Officer Standard (PPC) salary scale, which is as follows:

€95,301 – €99,345 – €103,358 – €107,400 – €110,811 (Normal Maximum) – €114,347 (Long Service Increment 1, received after 3 years on the Normal Max) – €117,879 (Long Service Increment 2, received after 6 years on the Normal Max).

State Bodies

Ceisteanna (259, 260, 275, 276, 277)

Jackie Cahill

Ceist:

259. Deputy Jackie Cahill asked the Minister for Finance the current status of the Disabled Drivers Medical Board of appeal; if they are operational; the current processing time; and if he will make a statement on the matter. [4163/23]

Amharc ar fhreagra

Jackie Cahill

Ceist:

260. Deputy Jackie Cahill asked the Minister for Finance how an individual undertakes the appeals process, with regard to a primary medical certificate refusal, to the Disabled Drivers Medical Board of Appeal; and if he will make a statement on the matter. [4164/23]

Amharc ar fhreagra

Michael Lowry

Ceist:

275. Deputy Michael Lowry asked the Minister for Finance if he will provide an update on the recruitment of the Primary Medical Certificates Appeals Board since the Board's resignation in 2021; the proposals that are being made to address the backlog in appeals made to the Board by persons with disabilities; and if he will make a statement on the matter. [4533/23]

Amharc ar fhreagra

Michael Lowry

Ceist:

276. Deputy Michael Lowry asked the Minister for Finance if he will report on the Primary Medical Certificate Appeals Board; the number of applications that are waiting to be processed by the Appeals Board; and if he will make a statement on the matter. [4534/23]

Amharc ar fhreagra

Michael Lowry

Ceist:

277. Deputy Michael Lowry asked the Minister for Finance when the primary Medical Certificates Appeals Board will provide a ruling to a person (details supplied) in County Tipperary who has appealed the refusal of a recent application; and if he will make a statement on the matter. [4558/23]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 259, 260 and 275 to 277, inclusive, together.

The Disabled Drivers & Disabled Passengers Scheme provides relief from VRT and VAT on an adapted car, as well as an exemption from motor tax and an annual fuel grant.

The Scheme is open to severely and permanently disabled persons who also meet the below medical criteria, as a driver or as a passenger and also to certain organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant.

To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled, and satisfy at least one of the following medical criteria, in order to obtain a Primary Medical Certificate:

- be wholly or almost wholly without the use of both legs;

- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;

- be without both hands or without both arms;

- be without one or both legs;

- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;

- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

In the event that a PMC is not granted by the relevant Senior Area Medical Officer an appeal may be made to the independent Disabled Drivers Medical Board of Appeal (DDMBA) who operate out of the National Rehabilitation Hospital in Dun Laoghaire.

It is expected that the DDMBA will be established shortly. The background is that following the resignation of all members of the previous DDMBA, effective from 30th November 2021, two Expression of Interest campaigns have been held, seeking suitable candidates for the Board. The Department of Health has led on all actions and tasks with respect to the Expression of Interest Campaigns. Department of Finance officials have provided support to the Department of Health in this matter.

The first campaign closed on 29th April. As there were insufficient suitable candidates arising from the first campaign, a second round was issued with a closing date of 5th July 2022. Five members are legislatively required for a functional Board with a quorum of three needed for any appeal hearing. Two other candidates were recently nominated by the Minister for Health. All five candidates have now successfully completed Garda Vetting.

My officials are currently in the process of finalising details, so that I can appoint the five members to the Board. I am hopeful that the new Board will be up and running in the next few weeks, and once operational, it will consider the best way of ensuring outstanding appeals are addressed as quickly as possible. You should also note that my officials have had two meetings with the nominated members in order to begin the preparations for the commencement of the appeals process.

As of 31st December 2022, there are currently 759 people awaiting an appeal hearing with 382 of those dating back to 2021 and the remaining 377 people applying for an appeal in 2022.

Requests for appeal hearings can be sent to the DDMBA secretary in the National Rehabilitation Hospital (NRH). The NRH provides clinical facilities and staffing (including a secretary) to facilitate the DDMBA in carrying out its remit, and costs incurred are reimbursed to the NRH annually by DFIN. Appeal hearing dates for the outstanding appeals will be issued once the new Board is in place.

You should be aware that assessments for the primary medical certificate, by the HSE, are continuing to take place. In this regard, an important point to make is that even though there has been no appeal mechanism since the previous Board resigned, applicants who have been deemed not to have met one of the six eligibility criteria required for a PMC are entitled to request another PMC assessment six months after an unsuccessful PMC assessment.

Question No. 260 answered with Question No. 259.

Primary Medical Certificates

Ceisteanna (261)

Jackie Cahill

Ceist:

261. Deputy Jackie Cahill asked the Minister for Finance the criteria that one must meet to qualify for a primary medical certificate; and if he will make a statement on the matter. [4165/23]

Amharc ar fhreagra

Freagraí scríofa

The Disabled Drivers & Disabled Passengers Scheme provides relief from VRT and VAT on an adapted car, as well as an exemption from motor tax and an annual fuel grant.

The Scheme is open to severely and permanently disabled persons, as a driver or as a passenger and also to certain organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate (PMC) issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant.

To qualify for a PMC an applicant satisfy at least one of the following medical criteria:

- be wholly or almost wholly without the use of both legs;

- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;

- be without both hands or without both arms;

- be without one or both legs;

- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;

- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

In the event that a PMC is not granted by the relevant Senior Area Medical Officer an appeal may be made to the independent Disabled Drivers Medical Board of Appeal (DDMBA) who operate out of the National Rehabilitation Hospital in Dun Laoghaire. A request for an appeal hearing much be made within 28 days of receiving notice of an unsuccessful PMC.

The Minister has no role in relation to the granting or refusal of PMCs and the HSE and the Medical Board of Appeal must be independent in their clinical determinations.

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