Dáil Éireann Debate, Thursday - 13 June 2024
72. Deputy Pearse Doherty asked the Minister for Finance if the special assignee relief programme is in the tax base, under the stability programme update, in each of the years 2025, 2026, 2027, 2028 and 2029, respectively, and the amount in the base for each of those years. [25835/24]
View answer73. Deputy Pearse Doherty asked the Minister for Finance for a full list of current tax expenditures and reliefs currently in operation; and if each tax expenditure is in the tax base, under the stability programme update, in each of the years 2025, 2026, 2027, 2028 and 2029 respectively, and the amount in the base in each of those years, in tabular form. [25836/24]
View answer76. Deputy Pearse Doherty asked the Minister for Finance if the rent tax credit is in the tax base, under the stability programme update, in each of the years 2025, 2026, 2027, 2028 and 2029, respectively, and the amount in the base for each of those years. [25852/24]
View answerI propose to take Questions Nos. 72, 73 and 76 together.
My Department publishes an Annual Report on Tax Expenditures, identifying a list of all tax expenditures in the Irish tax system, as per the OECD definition of a Tax Expenditure. The latest report, Report on Tax Expenditures 2024, was published last October on Budget Day. A list of the tax expenditures in use between October 2022 and September 2023 is set out in part 3 of the Report.
This report is available at the below link: www.gov.ie/pdf/?file=https://assets.gov.ie/273376/37783ca0-c33f-4017-a145-be7e855d87db.pdf#page=null .
In respect of the SARP, this measure was extended as part of Budget 2023 and is included within the tax base for 2025, and is scheduled to expire at end-2025. The rent tax credit was also introduced at Budget 2023 and is included within the tax base until end-2025.
An amendment to the rent tax credit was introduced in Budget 2024. The cost of this, and other Budget 2024 tax expenditures, was set out in the Tax Policy Changes document published on Budget Day and available at the below link: www.gov.ie/en/publication/de3d4-budget-2024-taxation-measures/ .
If these measures are extended beyond their current expiration date, cost estimates will be subject to revision based on the latest available data at the time.
From a forecasting perspective, measures introduced in previous Budgets are considered to form part of the tax base. The expiration of a tax expenditure will result in a positive impact on the tax revenue projections in that year. The Stability Programme Update is produced on a no-policy-change basis. As such the revenue projections assume the expiration of measures with sunset clauses as currently planned. In the Stability Programme Update, fiscal projections are not published beyond 2027.
My Department will set out the parameters for the Budget 2025 tax package, incorporating the net impact of carryover from previous budget measures, in the Summer Economic Statement, which will be published in the coming period.
