Written Answers Nos. 214-231
214. Deputy Paul Murphy asked the Minister for Transport in relation to calls from the board of CIÉ to award a pension increase as soon as possible, his views on the need for this increase; and if he will take action to ensure this is granted to retired workers who have not had a pension increase since 2008. [19331/24]
Amharc ar fhreagraAs the Deputy may be aware, the CIÉ Group is actively engaged in introducing changes to their pension schemes aimed at rectifying the significant deficit in order to meet the statutory Minimum Funding Standard (MFS) required by the Pensions Authority. The changes also aim to sustain the pension schemes into the long-term.Regarding the 1951 Scheme, CIÉ has prepared and submitted a draft SI to give effect to Labour Court recommendations for the 1951 Scheme, as passed by ballot of trade union members in May 2021. The Department is still in the process of considering the draft SI in conjunction with NewERA. The Deputy may also be aware that the rules governing the 1951 scheme are currently subject to ongoing legal proceedings before the Commercial Court. The Hearing commenced on 24 May 2022 for 4 days. While original indications were that a judgement would be expected in the Autumn of 2022, the matter was deferred on multiple occasions, with the judgment being delivered on 19 April 2024.
In his judgement, Mr Justice Mark Sanfey found that both CIÉ and the 1951 Scheme members were obliged to provide funding to the pension scheme to resolve any solvency issues. Justice Sanfey instructed both sides to meet to consider and agree what orders should be made on foot of the judgment ahead of a hearing date on 3 May 2024. The Department continues to engage with CIÉ, and advisors in NewERA in relation to this matter.
Concerning pension increases for CIÉ pensioners, I understand that an increase for pensioners would only be possible when the Schemes are capable of sustaining such increases. Furthermore, any such proposal would be dependent on the advice of the Scheme Actuary at the time an increase is proposed, and is done in agreement with the Trustees of the Schemes.Accordingly, I have forwarded the aspect of Deputy's question related to an increase in pension payments for members to CIÉ for direct reply. Please advise my private office if you do not receive a reply within ten working days.
215. Deputy Catherine Murphy asked the Minister for Transport if he will provide the amount of grant-aid returned and or surrendered to his Department, by local authority in 2022, 2023 and to date in 2024, to include the heading of which it was intended for. [19371/24]
Amharc ar fhreagraPlease see table below in relation to the amount of grant-aid returns to the Department of Transport by Local Authorities in 2022, 2023 and 2024. The returns relate to greenways. Unspent greenways capital was carried into 2024.
|
Year |
Local Authority Grant |
Amount Returned/Surrendered |
|
2023 |
Monaghan County Council |
€1,300,000 |
|
2023 |
Donegal County Council |
€2,626,103 |
|
2023 |
Louth County Council |
€5,000,000 |
216. Deputy Jim O'Callaghan asked the Minister for Transport the steps he will take to ensure that data on road traffic accidents is made available to researchers in order that they can advise on the best steps to be taken to confront rising accidents and fatalities on our roads; and if he will make a statement on the matter. [19385/24]
Amharc ar fhreagraThe Gardaí conduct investigations into road traffic collisions and produce detailed collision reports. These reports provide information on the causes of collisions, which in turn indicates the responses needed to minimise and prevent similar incidents in the future. The Road Safety Authority (RSA) receives this data from the Gardaí.
The RSA is responsible for providing a range of road safety services, including the driver testing, education and public awareness campaigns, and preparation of national road safety strategies. The RSA conduct research and analysis to perform their own functions, as well as providing data to relevant bodies in the sector, such as the Department of Transport and local authorities, and to publish statistical information for other researchers.
Collision reports contact significant amounts of quantitative and qualitative data, including highly sensitive personal data on collision victims and survivors. Provision of this data to researchers would be in contravention of Data Protection rules. However, Gardai, the RSA and other stakeholders are working extensively on the complex issue of ensuring that the appropriate bodies have continued access to the collision reports data.
217. Deputy Seán Haughey asked the Minister for Transport his considered response to the recent High Court judgment in respect of the CIÉ 1951 pension scheme; if he will take the necessary steps to ensure the benefits for the active members of the 1951 scheme are protected; if he will approve an increase for these pensioners; and if he will make a statement on the matter. [19406/24]
Amharc ar fhreagra218. Deputy Seán Haughey asked the Minister for Transport if he will ensure that CIÉ immediately complies with its legal obligations to appoint CIÉ board nominated members to the statutory CIÉ 1951 pension scheme committee pursuant to rule 12 of the scheme; and if he will make a statement on the matter. [19407/24]
Amharc ar fhreagraI propose to take Questions Nos. 217 and 218 together.
As the Deputy may be aware, the CIÉ Group is actively engaged in introducing changes to their pension schemes aimed at rectifying the significant deficit in order to meet the statutory Minimum Funding Standard (MFS) required by the Pensions Authority. The changes also aim to sustain the pension schemes into the long-term.
Regarding the 1951 Scheme, CIÉ has prepared and submitted a draft SI to give effect to Labour Court recommendations for the 1951 Scheme, as passed by ballot of trade union members in May 2021. The Department is still in the process of considering the draft SI in conjunction with NewERA. The Deputy may also be aware that the rules governing the 1951 scheme are currently subject to ongoing legal proceedings before the Commercial Court. The Hearing commenced on 24 May 2022 for 4 days. While original indications were that a judgment would be expected in the Autumn of 2022, the matter was deferred on multiple occasions, with the judgment being delivered on 19 April 2024.
In his judgment, Mr Justice Mark Sanfey found that both CIÉ and the 1951 Scheme members were obliged to provide funding to the pension scheme to resolve any solvency issues. Justice Sanfey instructed both sides to meet to consider and agree what orders should be made on foot of the judgment ahead of a hearing date on 3 May 2024. The Department continues to engage with CIÉ, and advisors in NewERA in relation to this matter.
Concerning pension increases for CIÉ pensioners, I understand that an increase for pensioners would only be possible when the Schemes are capable of sustaining such increases. Furthermore, any such proposal would be dependent on the advice of the Scheme Actuary at the time an increase is proposed, and is done in agreement with the Trustees of the Schemes.
Accordingly, I have forwarded the aspect of Deputy's question related to an increase in pension payments for members to CIÉ for direct reply. Please advise my private office if you do not receive a reply within ten working days.
219. Deputy Paul Murphy asked the Minister for Transport the number of drivers disqualified in court in 2022 and 2023; the number who have surrendered their licence to the Road Safety Authority in 2022 and 2023 as by law; and if he will make a statement on the matter. [19427/24]
Amharc ar fhreagraThe table below details the number of court disqualifications notified to the Department in 2022 & 2023 and the details of those licences that were surrendered.
A notification of disqualification is issued by the Courts Service for drivers convicted of a court disqualification, the notification includes the requirement to surrender the driving licence or learner permit to the NDLS within 14 days of commencement of disqualification.
An Garda Síochána have access to data on the Department's National Vehicle Driver File (NVDF) as part of their Mobility Strategy and therefore can detect and prosecute a driver who continues to drive while disqualified. This is the case whether or not a licence has been surrendered. Furthermore, An Garda Síochána also receive information from the Department on whether a licence has been surrendered or not in the case of a disqualification.
2022 & 2023 Court Disqualifications and Surrenders
|
Year |
Number of Notices |
Number of Surrenders |
|
2022 |
7,867 |
140 |
|
2023 |
9,035 |
678 |
220. Deputy Jim O'Callaghan asked the Minister for Transport the measures available for management companies that wish to install electric vehicle chargers within their apartment block but where ESB Networks have confirmed that there is not enough local power to accommodate this; whether any support is available to management companies seeking to introduce this environmentally friendly measure; and if he will make a statement on the matter. [19430/24]
Amharc ar fhreagraThe Government is fully committed to supporting a significant expansion of the electric vehicle charging network over the coming years. Having an effective and reliable charging network is an essential part of enabling drivers to make the switch to electric vehicles.
Zero Emission Vehicles Ireland (ZEVI), a dedicated Office which oversees and accelerate Ireland’s transition to zero emission vehicles, has significant funding available in 2024 for the installation of EV charging across Ireland.
The EV Charging infrastructure Strategy 2022-2025 sets out the government’s ambition regarding the delivery of a public EV charging network to support up to 195,000 electric cars and vans by the middle of the decade.
ZEVI are also currently engaging with Local Authorities to develop their EV Infrastructure Strategies which will identify areas without off street charging capabilities and identify solutions to be included in Implementation Plans which may include off street community chargers, Shared Charging facilities, and/or use of local Rapid Destination Chargers or Hubs.
In relation to electric vehicle grid connections, Zero Emissions Vehicles Ireland (ZEVI) continues to work closely with ESB Networks, a key member of the ZEVI Assurance Board and Progress Group. However, issues regarding the national electricity grid rest with EirGrid and ESB Networks.
EirGrid and ESB Networks are independent of the Minister of Environment, Climate and Communications in the exercise of their respective functions at an operational level. EirGrid, as Transmission System Operator, has responsibility for the development of the Transmission Network and ESB Networks, as Distribution System Operator, has responsibility for the development of the Distribution Network.
The Commission for Regulation of Utilities (CRU) was assigned responsibility for the regulation of the Irish electricity sector following the enactment of the Electricity Regulation Act, 1999 (ERA) and subsequent legislation. The CRU is an independent regulator, accountable to a committee of the Oireachtas and not the Minister.
The CRU is responsible for, inter alia, electricity grid connection policy and the economic regulation of the electricity system operators ESB Networks, distribution, and EirGrid, transmission. Under Section 34 of the ERA, the CRU may give directions to system operators, EirGrid and ESB Networks, on the terms and conditions of access to the electricity system. Based on the CRU’s policy directions, the system operators issue connection offers.
As such, unfortunately in the instance that a management company wishes to install any green technology, including EV charging, but where the grid is either not compatible with same or there is insufficient grid capacity locally, the management company will need to speak to either CRU or the network operators to determine whether future works will allow for those green technologies to be installed at a future date.
221. Deputy Cian O'Callaghan asked the Minister for Transport if, in light of the High Court judgement on the CIÉ pension scheme, he will outline the action being taken to ensure the scheme’s pension increase is being provided as soon as possible; if CIÉ board-nominated members are being appointed to the 1951 Pension Scheme Committee; and if he will make a statement on the matter. [19489/24]
Amharc ar fhreagraAs the Deputy may be aware, the CIÉ Group is actively engaged in introducing changes to their pension schemes aimed at rectifying the significant deficit in order to meet the statutory Minimum Funding Standard (MFS) required by the Pensions Authority. The changes also aim to sustain the pension schemes into the long-term.Regarding the 1951 Scheme, CIÉ has prepared and submitted a draft SI to give effect to Labour Court recommendations for the 1951 Scheme, as passed by ballot of trade union members in May 2021. The Department is still in the process of considering the draft SI in conjunction with NewERA. The Deputy may also be aware that the rules governing the 1951 scheme are currently subject to ongoing legal proceedings before the Commercial Court. The Hearing commenced on 24 May 2022 for 4 days. While original indications were that a judgement would be expected in the Autumn of 2022, the matter was deferred on multiple occasions, with the judgment being delivered on 19 April 2024.
In his judgement, Mr Justice Mark Sanfey found that both CIÉ and the 1951 Scheme members were obliged to provide funding to the pension scheme to resolve any solvency issues. Justice Sanfey instructed both sides to meet to consider and agree what orders should be made on foot of the judgment ahead of a hearing date on 3 May 2024. The Department continues to engage with CIÉ, and advisors in NewERA in relation to this matter.
Concerning pension increases for CIÉ pensioners, I understand that an increase for pensioners would only be possible when the Schemes are capable of sustaining such increases. Furthermore, any such proposal would be dependent on the advice of the Scheme Actuary at the time an increase is proposed, and is done in agreement with the Trustees of the Schemes.Accordingly, I have forwarded the aspect of Deputy's question related to an increase in pension payments for members to CIÉ for direct reply. Please advise my private office if you do not receive a reply within ten working days.
222. Deputy Duncan Smith asked the Minister for Transport the current situation with regard to the European Commission’s announcement of 24 April 2024 that it was sending Ireland a reasoned opinion (INFR(2023)0223) for not transposing Directive (EU) 2021/1187 on streamlining measures for advancing the realisation of the trans-European transport network; and if he will make a statement on the matter. [19504/24]
Amharc ar fhreagraThe main element of Directive (EU) 2021/1187 is the requirement on Member States to designate a body as 'designated authority' in respect of permit-granting procedures for projects of over €300m on the TEN-T core network.
Administrative arrangements in respect of the transposition of the Directive are at an advanced stage and it is anticipated that An Bord Pleanála will be designated as Ireland's 'designated authority' well in advance of the two-month transposition deadline specified by the European Commission.
223. Deputy Mattie McGrath asked the Minister for Finance to outline the number of Ukrainians who have paid VRT on Ukrainian vehicles imported to Ireland since the beginning of 2022; to outline the position in relation to Ukrainian refugees, having imported their cars, with regard to VRT; the procedure in place to ensure that vehicles are fully compliant with Irish tax requirements and the reason cars that are in the country for more than six months are not required to meet the same criteria as vehicles owned by Irish citizens; if he will review these requirements to ensure that vehicles permanently in Ireland are subject to the same criteria as all other cars in Ireland; and if he will make a statement on the matter. [18990/24]
Amharc ar fhreagraImported vehicles which have been registered previously in another jurisdiction and imported into Ireland are registered with and pay VRT to the Revenue Commissioners. The Minister for Finance can outline the numbers of Ukrainian vehicles that have re-registered in Ireland in this way since 2022.
Once an imported vehicle is re-registered in Ireland it is immediately treated the same way as any other Irish registered vehicle. The vehicle must pay annual motor tax, if it is using the public roads, must have valid insurance and must pass the NCT test if the car is over 4 years old.
224. Deputy Louise O'Reilly asked the Minister for Finance the number of mobile scanners that are in place at Irish seaports; the number of fixed scanners that are in place; the locations of each; and if there are plans to increase the number of mobile scanners to increase effectiveness in tackling smuggling. [19315/24]
Amharc ar fhreagraI am advised by Revenue that x-ray scanners, which are an integral component of its response framework targeting fraud, illicit trade, smuggling and organised crime, are just one component of a suite of resources, detection equipment and technologies deployed by them, in addition to the application of the comprehensive legal framework as set out in relevant tax and customs legislation. Intelligence development, electronic risk analysis tools, x-ray scan technology and maritime cutters are deployed as part of Revenue’s overall response.
Revenue’s suite of x-ray scanners range from handheld scanning devices to scan small packages, baggage scanners for the scanning of passenger luggage and parcels and mobile scanners to scan vehicles and containers.
Revenue currently operates mobile container x-ray scanners, an x-ray backscatter van and both mobile and fixed baggage scanners which are based at the main ports of entry. In addition, I am informed that Revenue has recently completed a tender for a second mobile baggage scanner van which will be based in Dublin but deployed in various locations nationwide as operational requirements dictate. This van is due for delivery in mid-2024 and has been purchased with financial assistance from the European Commission’s Customs Control Equipment Instrument (CCEI). Revenue keeps its operational requirements and arrangements regarding the deployment and use of detection technology and resources, including mobile x-ray scanners, under continuous review having regard to ongoing risk assessment of smuggling and criminal activities and evolving operational needs. I am satisfied with the risk-focused approach adopted by Revenue.
In addition to mobile x-ray scanners, Revenue currently has numerous fixed x-ray scanners in various locations nationwide. For operational reasons, I am advised by Revenue that it will not be providing details of where they are located.
I remain open to consider any proposals from Revenue that will support its work in combatting fraud, illicit trade and smuggling.
225. Deputy Jim O'Callaghan asked the Minister for Finance whether there are plans to incentivise young people to invest in their own retirement outside of employment pension schemes and whether the 41% tax on the unrealised gains of exchange traded funds after eight years is acting as a disincentive to people investing in their own retirement; and if he will make a statement on the matter. [18799/24]
Amharc ar fhreagraThe Deputy has raised the important matter of plans designed to incentive young people to invest in retirement. Supplementary pensions have their own special treatment within the tax system to encourage these preparations, referred to as an exempt-exempt-taxed or EET system. Contributions to pensions, within certain limits, are exempted from income tax, pension fund gains are exempted from income tax and income from pension drawdown, other than a tax-free lump sum, is taxed.
While employment pension schemes form an important part of the supplementary pension landscape, there are other pension products such as Personal Retirement Savings Accounts (PRSAs). Introduced in 2002, a PRSA is a personal retirement savings contract which any individual can take out with an authorised PRSA provider, which allows individuals to save for their retirement in a flexible manner. Contributions to a PRSA benefit from the same tax relief available for pension schemes and the PRSA can grow tax free. As the savings can only be accessed at retirement the PRSA provides an alternate savings vehicle for young people to save appropriately for retirement.
I would also highlight that the National Treasury Management Agency (NTMA), through State Savings products, 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.
I note the Deputy's query in relating to taxation of exchange traded funds. An ETF is an investment fund that is traded on a regulated stock exchange. A typical ETF can be compared to a tracker fund in that it will seek to replicate a particular index. ETFs, being collective investment funds, generally come within the regimes set out in the Taxes Consolidation Act 1997 for such funds. The domicile of the ETF will generally determine the applicable fund regime, specifically whether the ETF falls within the domestic fund regime or the offshore fund regime. Where the domestic fund regime applies, a ‘gross roll-up’ applies such that there is no annual tax on income or gains arising to a fund but the fund has responsibility to deduct an exit tax in respect of payments made to certain unit holders in that fund. To prevent indefinite or long-term deferral of this exit tax, a disposal is deemed to occur every 8 years. Where the offshore fund regime applies, the applicable tax treatment depends on the location and nature of the fund. Income and gains arising from investments into Irish and EU domiciled ETFs are subject to income tax at a rate of 41% on a self-assessment basis. Such income and gains are not subject to Pay Related Social Insurance (PRSI) or Universal Social Charge (USC) liabilities. This charge to tax does not apply in the case of unit holders who are non-resident. In the case of non-resident investors, liability to tax on gains from the fund will be determined in their home jurisdiction.
On 6 April 2023, I published the terms of reference for a review of Ireland’s funds sector and some related taxation issues. Among other issues, the review is examining three specific areas of taxation which were highlighted in the recommendations of the Commission on Taxation and Welfare. These issues are (1) the taxation regime for funds; life assurance policies and other related investment products; (2) the real estate investment trusts (REITs); and the Irish real estate funds (IREF) regimes and their role in the property sector; and (3) the use and scope of the section 110 regime. A public consultation was run in summer 2023. A progress update was subsequently published on 21 December 2023. The progress update highlighted the main trends, risks, challenges and opportunities facing the funds industry in Ireland out to 2030, as identified in the responses. The progress update also summarises proposals made in submissions in relation to the taxation of ETFs and for a tax-free/tax-advantaged retail savings and investment product. The review team will report to me in summer 2024 and I look forward to considering its findings at that point.
226. Deputy Cian O'Callaghan asked the Minister for Finance if there is a citizenship or length of residency criteria on applying for tax relief on tuition fees; and if he will make a statement on the matter. [18817/24]
Amharc ar fhreagraSection 473A of the Taxes Consolidation Act (TCA) 1997 provides for tax relief at the standard rate of income tax (20%) in respect of “qualifying fees” paid by an individual for a third level education course, subject to the terms and conditions set out in the legislation.
“Qualifying fees” broadly means tuition fees in respect of an approved course at an approved college and includes what is referred to as the “student contribution”. All approved courses provided by publicly funded or duly accredited universities and institutions in other European Union (EU) Member States or in the United Kingdom are regarded as approved for the purposes of tax relief.
The maximum amount of fees that can qualify for the relief is €7,000 per course per academic year. Any claim for relief is subject to a single “disregard” amount each tax year, currently €3,000 in the case of a full-time course and €1,500 for a part time course.
Entitlement to tax credits and tax reliefs, including the above tax relief for tuition fees, depends on an individual’s tax residency position and other personal circumstances. Residency is determined based on the number of days spent in the State. Broadly, where an individual spends 183 days or more in the State in a year, he or she will be regarded as Irish tax resident. Alternatively, where an individual spends 280 days or more over a period of two consecutive tax years, he or she will be tax resident for the second year.
An individual who is tax resident in the State will be entitled to the normal personal tax credits, reliefs and deductions. By comparison, a non-resident individual is generally not entitled to tax credits. However, in certain circumstances, e.g., where an individual not resident in the State proves that he/she is an Irish citizen, a portion of the credits, reliefs or deductions are available to claim by the non-resident individual under section 1032 of the TCA 1997. This portion is calculated by reference to the ratio of his/her Irish income as a proportion of their total worldwide income from all sources.
As tuition fees is a relief against income tax, the claimant must have an Irish income tax liability to benefit from tax relief on tuition fees. If the tuition fees tax relief due exceeds the claimant’s income tax liability the relief will apply to the extent that it reduces the claimant’s income tax liability for the year of assessment to nil.
A claim for tax relief on tuition fees is made by filing an Income Tax Return. For all taxpayers Revenue provides a free, quick and easy to use facility to file an Income Tax Return. For PAYE taxpayers this is done through myAccount, with self-assessed taxpayers using ROS.
Further information in relation to the above is available on the Revenue website as follows:
Tuition fees paid for third level education including a list of approved courses www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/index.aspx
Guidance on tax residence rules
www.revenue.ie/en/jobs-and-pensions/tax-residence/resident-for-tax-purposes.aspx
Non-residents and tax credits
www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-45/45-01-01.pdf
Filing an Income Tax Return
PAYE taxpayers - www.revenue.ie/en/jobs-and-pensions/end-of-year-process/index.aspx
Self-assessed taxpayers - www.revenue.ie/en/online-services/services/common/file-an-income-tax-return.aspx for self-assessed taxpayers.
227. Deputy Claire Kerrane asked the Minister for Finance if he will prevent the fuel excise increase scheduled for 1 May 2024 given the financial pressure farmers and contractors will face as a result of further increases to the cost of fuel; and if he will make a statement on the matter. [18826/24]
Amharc ar fhreagra235. Deputy Richard O'Donoghue asked the Minister for Finance if he will postpone the introduction of a carbon tax increase on agricultural diesel from 1 May 2024 to 1 October 2024, due to the escalating costs incurred by farmers over the winter period due to the bad weather; and if he will make a statement on the matter. [19064/24]
Amharc ar fhreagraI propose to take Questions Nos. 227 and 235 together.
The Finance Act 1999 provides for the application of excise duty, in the form of Mineral Oil Tax (MOT), to liquid fuels used for motor or heating purposes. MOT comprises a carbon component, or carbon charge, which is usually referred to as carbon tax. MOT also comprises a non-carbon component which is often referred to as “excise” or “fuel excise/tax/duty”. It is important to note that both components of MOT are excise.
Under MOT law standard rates apply to auto-fuels for use in road vehicles. Reduced rates apply to fuels used for other purposes such as in agricultural tractors and machinery. Diesel that is supplied at a reduced MOT rate must be marked with prescribed fiscal markers and is referred to as marked gas oil (MGO), or green/agri/farm diesel.
Reduced MOT rates are significantly lower than standard rates. MOT rates are published on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/energy-excise-duty-rates.pdf.
Government and I are conscious of the implications of fuel costs for all sectors of society. This is reflected in the fact that in 2022, in light of the acute impact rising prices were having on households and businesses, the Government provided for temporary cuts in MOT rates which, inclusive of VAT amounted to 21 cent, 16 cent and 5.4 cent per litre on petrol, auto-diesel and marked gas oil, respectively. These temporary cuts to MOT rates were initially due to end on 31 August 2022, but following a review and monitoring of fuel prices they were extended until February 2023, with a phased restoration beginning in June 2023, followed by a second restoration in September 2023.
A final restoration of excise rates was due to take place on 31 October 2023, but in Budget 2024, I provided for a further extension until 31 March last, with a phased restoration occurring in two stages on 1 April last and 1 August next.
The MOT increases, which will come into effect on 1 May 2024, are provided for in legislation, which was introduced in Finance Act 2020 to support Government’s commitment to emissions reductions. Under the 10-year carbon tax trajectory the amount charged per tonne of carbon dioxide emissions from fuels will increase annually to reach €100 by 2030. Delivering on the 10-year carbon tax trajectory also features as one of the nine reform measures in Ireland’s National Recovery and Resilience Plan.
The table below details the current reduced MOT rate per 1,000 litres for farm diesel, and the rate effective from 1 May 2024, broken down into carbon and non-carbon components. For comparison the standard MOT rates applicable is auto-diesel are also included.
|
Fuel/MOT effective date |
Non-carbon component |
Carbon component |
Total MOT |
|
Farm diesel – current rate |
€32.49 |
€131.47 |
€163.96 |
|
Farm diesel – rate from 1 May 2024 |
€32.49 |
€151.81 |
€184.30 |
|
Auto-diesel – current rate |
€401.33 |
€149.89 |
€551.22 |
In addition to the reduced rate of MOT on farm diesel for agricultural purposes, section 664A of the Taxes Consolidation Act 1997 provides relief for expenditure incurred in respect of an increase in the carbon tax on farm diesel. Relief is given in the form of a deduction for the additional amount of expenditure on the carbon tax incurred by persons carrying on a trade of farming on the purchase of farm diesel. This relief does not apply to agricultural contractors as they are not carrying on a trade of farming.
The way the relief operates is that, in computing profits of a farming trade, a farmer may claim an income tax or corporation tax deduction for farm diesel that is equal to the difference between the carbon tax charged and the carbon tax that would have been charged had it been calculated at the rate of €41.30 per 1,000 litres. This was the rate applicable from 1 May 2010 when carbon tax was introduced and applied until 30 April 2012. The farmer is also entitled to claim a deduction for expenditure on the farm diesel (including the carbon tax charged in respect of the diesel).
Further information on the relief is available on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-23/23-01-36.pdf.
Consequently, I am not proposing to postpone the 1 May carbon tax increase on farm diesel.
228. Deputy Denis Naughten asked the Minister for Finance the total number of copper communication lines within his Department that are currently in active operation and for which his Department is paying for on a monthly basis, inclusive of ISDN, PTSN and copper-based lease lines; and if he will make a statement on the matter. [18836/24]
Amharc ar fhreagraI can advise the Deputy that the Data and Telephony, which is voice over IP (VOIP), communication lines for my Department are fibre optic communication lines.
There are 36 copper communication lines in operation across my Department and the Department of Public Expenditure, NDP Delivery and Reform (as part of a shared services arrangement whereby my Department pays the monthly costs). Five of the lines relate to a building no longer occupied by my Department and a process is underway to move these to the current occupant.
Furthermore, my Department is in the process of carrying out a review to assess the continuing requirement for the remaining 31 lines.
229. Deputy Seán Canney asked the Minister for Finance if he will consider introducing a VAT refund scheme for first time buyers of homes to help deal with the increased cost of construction; and if he will make a statement on the matter. [18891/24]
Amharc ar fhreagraAs the Deputy will be aware, the VAT treatment of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under the EU VAT Directive it is not possible for Ireland to introduce a VAT refund scheme for first time buyers of homes.
230. Deputy Carol Nolan asked the Minister for Finance if there are any options available to a company that believes warehoused debt accrued under the EWSS scheme was unfairly calculated; and if he will make a statement on the matter. [18955/24]
Amharc ar fhreagraSection 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provided for the Employment Wage Subsidy Scheme (EWSS), which was an economy-wide enterprise support provided to eligible businesses in respect of eligible employees.
Eligibility to EWSS was based on the employer demonstrating that its business was likely to experience a 30 per cent reduction in turnover or orders during a specific reference period and that the disruption to business was caused by the Covid-19 pandemic. In addition, the business was required to be tax compliant.
Employees were eligible if they were in receipt of weekly gross wages between €151.50 and €1,462. Revenue’s administration of the scheme was on a self-assessment basis, with employers claiming the subsidy through their payroll submission to Revenue. The legislation also provided that employers were required to carry out a monthly review of eligibility. If employers subsequently determined they were not eligible, or they wished to voluntarily remove themselves from the scheme, they did so through their payroll submission and repaid the subsidies claimed.
The administration of the EWSS was placed under the care and management of Revenue. Throughout the scheme and since its cessation, Revenue has been carrying out a risk-focused programme of compliance interventions to identify businesses that have overclaimed EWSS subsidies, to quantify the amounts overclaimed, and to recoup these overclaimed subsidies. These overclaims arose, for example, in circumstances where employers had claimed subsidies in respect of periods during which they were not eligible for the scheme.
I am advised by the Revenue Commissioners that the only circumstance in which employers were required to repay EWSS is if they were not eligible to receive it.
In most instances, agreement is reached with employers, and EWSS subsidies overclaimed are recouped or the liability is warehoused for those employers who qualify for the Debt Warehousing Scheme and who opt to have the debt warehoused. The scheme allowed businesses to temporarily defer repayment of EWSS subsidies overclaimed on an interest-free basis for an extended period of time after which a reduced interest rate of 3 per cent was to be applied. Earlier this year, I announced that this 3 per cent interest rate will be further reduced to 0 per cent for taxpayers who engage meaningfully with Revenue before 1 May 2024, with a view to repaying their warehoused debt.
Where agreement is not reached with an employer, Revenue makes an EWSS notice of assessment and employers have the option to submit an appeal to the Tax Appeals Commission (TAC) within 30 days of the notice of assessment.
An employer can query their EWSS liability with the relevant Revenue Division dealing with the employer’s tax affairs by logging in to ROS and raising a query. They can use the “Contact Us” facility on www.revenue.ie to find the correct contact details for their query.
231. Deputy Martin Kenny asked the Minister for Finance if he will consider increasing the age tax credit in Budget 2025; and if he will make a statement on the matter. [18989/24]
Amharc ar fhreagraThe position is that the tax code provides for a number of tax measures for those aged 65 and over. This includes section 464 Taxes Consolidation Act 1997 which provides for the Age Tax Credit for individuals aged 65 or over. The credit is due in the year that an individual reaches the age of 65 and is granted for the full tax year. The current value of the tax credit is €245 per year for single persons or €490 per year for married couples or civil partners. The credit is available when the older spouse or civil partner reaches the age of 65.
I have no current plans to increase the Age Tax Credit further. However, it is important to take into account that the current tax arrangements for persons aged 65 or older compare favourably with the tax treatment of the generality of taxpayers. For example, the current age exemptions limits mean that single, widowed or surviving civil partners aged 65 or older do not pay any income tax if they earn less than €18,000 per annum, with a threshold of €36,000 in place for a married couple or civil partners where one person is 65 years of age or older. The relevant income thresholds may be increased further if the individual has a qualifying child.
Marginal relief may also be available where the individual’s or couple’s income exceeds the relevant exemption limit but is less than twice that amount. Where marginal relief applies the individual or couple is taxed at 40 per cent on all income above the exemption limit to a ceiling of twice the exemption limit. The system of marginal relief ensures that in cases where an individual's or couple’s income rises above the exemption threshold that their net income will not decline, as the 40 per cent income tax rate only applies to the proportion of income above the threshold. Once the income exceeds twice the exemption limit, marginal relief is no longer available and the individual pays tax under the normal tax system.
It should be noted that where the individual’s income is greater than the exemption limit but below twice that limit, the taxpayer is entitled to the benefit of the more favourable treatment of either the use of marginal relief or the normal tax system of credits and bands.
Reduced rates of USC also apply for persons aged 70 or older where their total income is €60,000 per annum or less. Furthermore, the State Contributory Pension and the State Non-Contributory Pension are excluded from the calculation when determining whether an individual’s total income has exceeded the €60,000 per annum threshold. It is also worth pointing out that the State Contributory and Non-Contributory Pensions are not chargeable to USC or Pay Related Social Insurance.
Further details of the tax related support available for persons aged 65 and over can be located on Revenue’s website at the following link - www.revenue.ie/en/life-events-and-personal-circumstances/older-persons/index.aspx
Finally, it should be noted that the Commission on Taxation and Welfare recently reviewed the tax system in the round. The Commission recommended that age should be removed as a factor for determining the charge to income tax and USC. The report stated that the determination of an individual’s tax treatment based on age narrows the base and breaches the concept of horizontal equity, whereby those with similar income should pay the same proportion of that income in taxes. It also breaches the concept of intergenerational equity. Further details are set out in the Report of the Commission, located at the following link - www.gov.ie/en/publication/7fbeb-report-of-the-commission/.
