Written Answers Nos. 92-100
92. Deputy Carol Nolan asked the Minister for Finance further to Parliamentary Question No. 232 of 7 March 2023, the projected revenue in a full year of a return to a 13.5% VAT rate for the hospitality sector; and if he will make a statement on the matter. [14048/23]
Amharc ar fhreagraI am informed by Revenue that a breakdown of net tax receipts, including VAT, by economic sector is available on the Revenue website at: revenue.ie/en/corporate/information-about-revenue/statistics/receipts/receipts-sector.aspx
The hospitality sector is approximately captured under Accommodation & Food Services in this breakdown. The Deputy may wish to note that due to the option for a group of companies to remit VAT through a single entity, businesses in the hospitality sector may remit VAT through an entity which is recorded under an economic sector other than Accommodation & Food Services.
I am further informed by Revenue that traders are not required to identify the VAT yield generated from the supply of specific services or at specific VAT rates on their VAT returns. Therefore, it is not possible to provide an accurate costing for the potential measures outlined using information provided on tax returns.
However, using a number of third-party data sources, a tentative estimate of the full-year VAT yield arising from a 13.5% VAT rate applying in the hospitality sector would be in the region of €1.7 billion, or an additional €563m compared to the full-year yield from the application of the 9% VAT rate. This estimate assumes no change in consumer behaviour as a response to the increase in VAT.
93. Deputy Patrick Costello asked the Minister for Finance the number of applications under the cycle-to-work scheme in 2022 and to date in 2023; if he will provide a breakdown between the number of bicycles, pedelecs, e-bikes, and e-cargo bikes; and if he will make a statement on the matter. [14058/23]
Amharc ar fhreagra94. Deputy Patrick Costello asked the Minister for Finance his views on expanding the reach of the bike-to-work scheme to beyond PAYE to everyone employers, sole-traders, students, jobseekers, disabled, unpaid home-work and the retired; and if he will make a statement on the matter. [14059/23]
Amharc ar fhreagraI propose to take Questions Nos. 93 and 94 together.
Section 118(5G) of the Taxes Consolidation Act 1997 (TCA 1997) provides for the Cycle to Work scheme. This scheme provides an exemption from benefit-in-kind (BIK) where an employer purchases a bicycle and associated safety equipment for an employee to use. There are three limits, depending on the type of bicycle purchased, which include related safety equipment, in whole or in part, to travel to work:
- the first €3,000 of expenditure on cargo and ecargo bikes
- the first €1.500 of expenditure on pedelecs and ebikes
- the €1,250 of expenditure for other bikes.
Safety equipment includes helmets, lights, bells, mirrors and locks but does not include child seats or trailers.
Under section 118B TCA 1997 an employer and employee may also enter into a salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary, in exchange for a bicycle and related safety equipment.
BIK is a charge to tax that applies where an employer provides an employee with a benefit such as a bicycle, car or accommodation. Therefore, the Cycle to Work Scheme is only applicable where the bicycle and safety equipment is provided by an employer to either a director or someone in its employment and thus, where an employer-employee relationship does not exist, for example, in the case of self-employed, retired individuals, or those in receipt of social welfare payments, such individuals can’t qualify for the scheme. Likewise, salary sacrifice arrangements may only be entered into between an employer and a director or employee.
The Scheme operates on a self-administration basis, and 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 centrally available on the number of people availing of the scheme or the types of bicycle purchased.
The expansion of any scheme creates a cost and that cost must be recovered elsewhere. For that reason, while the scheme is kept under review by officials, I have no plans at present to change the scope of the scheme.
Further information and guidance regarding the cycle to work scheme can be found on Revenue’s website at the link below. www.revenue.ie/en/jobs-and-pensions/taxation-of-employer-benefits/cycle-to-work-scheme.aspx
95. Deputy Patrick Costello asked the Minister for Finance the amount of category A vehicles that were charged with the nitrogen dioxide emissions, NOx, levy in 2021, 2022, and to date in 2023; the revenue raised each year; and if he will make a statement on the matter. [14066/23]
Amharc ar fhreagra96. Deputy Patrick Costello asked the Minister for Finance the estimated revenue that would be raised if the current nitrogen dioxide, NOx, levy was doubled; and if he will make a statement on the matter. [14067/23]
Amharc ar fhreagra97. Deputy Patrick Costello asked the Minister for Finance the estimated revenue that would be raised annually if the current nitrogen dioxide, NOx, levy was applied to both categories A and B vehicles; and if he will make a statement on the matter. [14068/23]
Amharc ar fhreagraI propose to take Questions Nos. 95, 96 and 97 together.
In relation to question 14066, I am informed by Revenue that the number of category A vehicles charged with the nitrogen dioxide emissions (NOx) levy in 2021, 2022, and to date in 2023, along with the revenue raised each year, is provided in the table below
|
Year |
Number of registrations (NOx levy applied) |
NOx Levy €m |
|
2023* |
38,265 |
4.6 |
|
2022 |
127,375 |
17.4 |
|
2021 |
149,382 |
27.2 |
*To 28 February 2023
In relation to question 14067, I am informed by Revenue that, since the introduction of the NOx levy, the NOx emission profile of vehicles is declining. In addition, the number of imported used vehicles is also in decline. These imported used vehicles would typically have a higher NOx emission profile than newer vehicles. Based on the most recent full year data (2022), doubling of the NOx levy would yield approximately €34.8m in a full year. This estimate does not account for any behavioural changes in response to increasing the NOx levy.
In relation to question 14068, I am informed by Revenue that, based on 2022 registrations for category B vehicles and information regarding the NOx emission profile of these vehicles, the additional revenue that would be generated if the NOx levy was extended to category B registrations would be in the region of €30m. This estimate does not account for any behavioural changes in response to the additional VRT that would arise from the application of the NOx levy to category B vehicles.
98. Deputy Patrick Costello asked the Minister for Finance the estimated revenue that would be raised if the carbon tax was doubled and the 2030 levy target was doubled to €200 per tonne; and if he will make a statement on the matter. [14078/23]
Amharc ar fhreagraThe most recent projection of additional carbon tax revenues provided by my Department for the period 2021 to 2030 amounted to €9.2 billion, based on the Government’s commitment to increasing the amount that is charged per tonne of CO2 emissions from fuels to €100 by 2030. This is a key pillar underpinning the Government’s Climate Action Plan ambitions to halve emissions by 2030 and reach net zero no later than 2050.
These projections for carbon tax receipts are based on a declining carbon tax base reflecting changing behaviour in response to the tax, amongst other factors. These estimates were based upon official projections from the Environmental Protection Agency (EPA) published, in June 2021 which represented an independent assessment of Ireland’s emissions trajectory to 2030. Specifically the estimates are based on the EPA’s non-ETS (EU Emissions Trading System) ‘WAM’, or with additional measures scenario for greenhouse gas emissions, which includes the Government’s commitment to a €100 per tonne carbon tax by 2030. The EPA is working on revised projections and the Department will carry out further analysis on projected carbon tax revenue on this basis.
For straight line estimates on tax rate increases Revenue’s Ready Reckoner includes estimates for the yield from changes in duties on Carbon Tax on page 23. The Ready Reckoner is available at:
www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx .
Where the cost of specific increases proposed are not displayed in the Ready Reckoner, they can be estimated on a straight-line or pro-rata basis from the costs shown.
I am advised by Revenue that the estimates in the Ready Reckoner are prepared on the assumption of no behavioural change in response to a change in the tax. The Revenue estimates are based on the regular volumes for each commodity expected in a normal year and are inclusive of VAT.
99. Deputy Pauline Tully asked the Minister for Finance the disciplines and professions he believes should be required to conduct the multidisciplinary assessments for the disabled drivers and disabled passengers scheme (details supplied); who they would be employed by; and if he will make a statement on the matter. [14272/23]
Amharc ar fhreagraMy 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 such people.
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. The report has recently been published by the Department of Children, Equality, Integration, Disability and Youth who led the work of the NDIS Transport Working Group..
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.
Regarding methods of assessment, the CSG found that 10 countries of 32 examined, use an assessment by an occupational therapist and/or a multidisciplinary team, for example to assess the degree of mobility impairments and/or to determine what vehicle adaptations might be required. A further 6 countries (including Ireland) assessed disability through a separate assessment by a medical professional, which could include a general practitioner. Of these, only Ireland and Australia solely use a separate medical assessment as the basis of determining eligibility.
It should be noted that the reference to "multidisciplinary assessments" in the aforementioned Disabled Drivers and Disabled Passengers Scheme Review (Paper 1) was made in the context of a new needs based granted aided scheme, as such an approach would not be compatible with the current structure of the DDS, and is one of the reasons why the CSG concluded it needs to be replaced.
In summary, the primary conclusion of the CSG is that the DDS needs to be replaced with a fit for purpose, needs-based and grant-aided vehicular adaptation scheme in line with best international practice.
The NDIS TWG endorses the recommendation to develop a new needs-based, grant-aided vehicular adaptation scheme. However, the final report does not set out next steps. It will be a matter for Government as to how to take this matter forward.
100. Deputy Patrick Costello asked the Minister for Finance the training provided to revenue inspectors in relation to human trafficking. [14361/23]
Amharc ar fhreagraI am advised that Revenue does not have a lead role in relation to the response to human trafficking but works closely with An Garda Siochána and with immigration officials in the Department of Justice responsible for the management of inward migration and international protection processes where it encounters any incidents or suspected incidents of such activity.
