Written Answers Nos. 61-80
62. Deputy Pearse Doherty asked the Minister for Finance the first- and full-year revenue of an increase to residential stamp duty to 5% and 6% respectively on properties over €1,000,000, taking account of the announced chances in Budget 2025 in relation to stamp duty; and if he will make a statement on the matter. [40536/24]
View answerI announced on Budget Day that a new 6% rate of Stamp Duty will be applied to the value of residential property in excess of €1.5 million (so increasing the rate applied to that element of a property's value from 2% to 6%), and that the higher rate of Stamp Duty on bulk acquisitions of houses is to be increased from 10% to 15%. Both of the increased rates apply to all relevant instruments of transfer executed after midnight on 2 October 2024.
I also announced on Budget Day that transitional arrangements would apply where there is a binding contract in place before 2 October 2024 and the transfer of the property is finalised before 1 January 2025. In these circumstances a purchaser can benefit from the previous rates. However, any person wishing to rely on the transitional arrangements must produce a copy of the executed instrument of transfer which must contain a certificate to this effect. These were given effect by way of Financial Resolution on Budget night.
The estimated additional revenue received or foregone arising from the introduction of each of the taxation measures I announced in the Budget are set out in the Budget 2025 Tax Policy Changes book which was included in the Budget documentation, a copy of which is available on the Budget 2025 web page on the Gov.ie site.
In relation to the two costings sought, I would refer you to Revenue's pre-Budget ready reckoner, which is available on their website, and which estimates that increasing the stamp duty applied to acquisitions of residential property on considerations above €1 million to 5% would generate an additional €75 million in a full year. While the revenue that might be derived through increasing that rate to 6% on the same basis is not provided, it can be estimated on a straight-line or pro-rata basis. It should be noted that these estimates do not take account of any potential change in behaviour by the taxpayers concerned in response to changes in the tax rate.
An update of the Ready Reckoner is due to issue in the coming weeks.
63. Deputy Pearse Doherty asked the Minister for Finance the first- and full-year cost of the measure to extend mortgage interest tax relief; the number of people that would benefit from this measure; and if he will make a statement on the matter. [40540/24]
View answerIn my Budget 2025 address, I announced an extension of Mortgage Interest Tax Relief for one further year to the 2024 year of assessment.For 2024, relief at the standard rate of income tax will apply in respect of the increase in interest paid in 2024 over interest paid in 2022. All other conditions pertaining to the relief remain unchanged. The relief will be capped at €1,250 per property and will be available to taxpayers in respect of their principal private residence in the State, where the outstanding mortgage balance was between €80,000 and €500,000 as of 31 December 2022. The relief extends to a qualifying property located in the State, which is the sole or main residence of the individual’s former or separated spouse or civil partner or a dependent relative. Furthermore, the taxpayer must be compliant with Local Property Tax requirements and must have an income tax liability in 2024. The relief will operate by way of a credit offset against a taxpayer’s income tax liability for 2024. In advance of Budget 2024, the Central Bank of Ireland estimated that approximately 208,000 eligible accounts, predominantly tracker and variable mortgages, or c. 165,000 properties may be eligible for the relief and estimated the cost of the Budget 2024 measure at €125 million.
In advance of Budget 2025, given the relatively limited changes to the relief, no significant change in the number of eligible accounts was anticipated, however, a revised outer cost in the region of €140 million was estimated. However, having regard to the current take-up of the relief and the average claim value to date, the cost of extending Mortgage Interest Tax Relief was estimated to be €40 million on a once-off basis for Budget 2025.
64. Deputy Pearse Doherty asked the Minister for Finance the estimated increase in tax and first- and full-year revenue from the €0.80 increase to the minimum wage; the estimated increase of an additional €0.30 to €13.80; and if he will make a statement on the matter. [40541/24]
View answerAs I announced in my Budget 2025 speech, as part of a substantial personal income tax package I am increasing the ceiling of the second rate of USC, the 2 per cent rate, to take account of the increase in the National Minimum Wage, which is increasing by €0.80 per hour, from €12.70 per hour to €13.50 per hour, with effect from 1 January 2025. The ceiling of the 2 per cent USC rate band will increase by 6.3 per cent from €25,760 to €27,382 with effect from 1 January 2025. This continues the Government’s policy of ensuring full-time workers on the minimum wage will remain outside the charge to the top rates of USC. It will also be of benefit to other workers whose income is above that amount.
I am advised by Revenue that, as its payroll records do not contain data on either hours worked or the hourly wage, it has no data from which to provide an estimate for an increase in tax or revenue from increases to the national minimum wage.
65. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue in 2025 from reducing the standard rate threshold to €1.5 million; and if he will make a statement on the matter. [40542/24]
View answerThe Standard Fund Threshold (SFT) is the maximum allowable pension fund on retirement for tax purposes which was introduced in Budget and Finance Act 2006 to prevent over-funding of pensions through tax-relieved arrangements.
I am informed by Revenue that they are unable provide a costing for changes to the SFT. Information on the numbers and values of individual pension funds or on individual accrued benefits in pension schemes are not generally required to be supplied to Revenue. Therefore, currently there is no readily available underlying data or methodology on which to base reliable estimates of any possible yields that might be realised arising from reductions to the SFT as outlined by the Deputy.
As the Deputy will be aware, the examination of the Standard Fund Threshold has recently concluded and in the context of this examination my officials examined the issue of estimating the impact of changes to the SFT using only the available information about previous payments of Chargeable Excess Tax (CET). Following this examination, the Department prepared some indicative estimated costs, based on the information available. I would note that these estimated costs do not take account of behavioural changes and are based on a reduction of the current CET yield. Using this model, the indicative estimated revenue in 2025 from reducing the standard fund threshold to €1.5 million would be approximately €50 million. However, I would emphasise again that this indicative estimate does not allow for any behavioural changes.
It is important to note that the indicative costs above relate only to CET. All pensions are subject to tax on drawdown (with the exemption of a tax free lump sum). The examination of the SFT noted that this tax paid on drawdown should be included in any overall consideration of the cost of pensions tax relief, which could be better characterised as tax deferred. The issue of calculating the cost of pension tax expenditure will be considered by the implementation group to be established to consider further a number of the recommendations in the report.
66. Deputy Pearse Doherty asked the Minister for Finance the first- and full-year revenue that will be raised next year by increasing the vacant home tax by 1%; and if he will make a statement on the matter. [40543/24]
View answerThe Vacant Homes Tax (VHT) is a self-assessed tax, and the number of properties in scope and the amount of tax payable, depend on the returns submitted by property owners, the number of properties declared as liable, and the number of property owners entitled to claim available exemptions from the tax.
As the Deputy will be aware, the VHT is charged as a multiple of the Local Property Tax (LPT) charge, rather than as a percentage of market value. For the first chargeable period ended on 31 October 2023, VHT was charged at three times the property's base LPT charge. For the chargeable period that commenced on 1 November 2023, VHT will be charged at five times the property's base LPT charge. Returns in respect of this chargeable period will be due on 7 November 2024, with the associated tax due for payment on 1 January 2025.
In Budget 2025 I announced an increase in the rate of the tax from five times to seven times the base LPT charge. This will apply from the next chargeable period, commencing on 1 November 2024.
As of July 2024, approximately 3,500 properties have declared a liability to VHT, amounting to €2 million in respect of the first chargeable period. As VHT is charged as a multiple of LPT rather than as a percentage of market value, I am informed by Revenue that they do not have a basis on which to estimate the cost of the suggested increase to the tax.
However, I am advised by Revenue that a tentative estimate for the additional VHT yield raised by an increase of each increment to the multiplier of the LPT charge would be in the region of €0.7 million.
It should be noted that VHT returns reflect the position at a particular point in time, and the estimated additional yield does not take into account of any behavioural change.
67. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of the landlord tax relief for 2025, 2026 and 2027; and if he will make a statement on the matter. [40544/24]
View answerThe Residential Premises Rental Income Relief (RPRIR) provides relief, at the standard rate, on a portion of a landlord’s residential rental income. The relief is €3,000 in the tax year 2024, €4,000 in the tax year 2025 and €5,000 in the tax years 2026 and 2027, which is equivalent to a tax credit of up to €600, €800 and €1,000 respectively.
At the time of its introduction, the estimated cost of the RPRIR for 2025 was €111 million, for 2026 it was €143 million, and for 2027 it was €160 million.
Further information on RPRIR is available at the following link: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rprir/index.aspx.
68. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of the rent tax credit for 2025, 2026 and 2027; and if he will make a statement on the matter. [40545/24]
View answerThe Rent Tax Credit (RTC), as provided for in section 473B of the Taxes Consolidation Act 1997 (TCA 1997), was introduced by the Finance Act 2022 and may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.
For 2022 and 2023, the maximum estimated cost of the RTC was €200 million, based on the value of the RTC being €500 for a single person and €1,000 for a jointly assessed couple.
In Finance Act (No.2) 2023 the credit was increased to €750 for a single person, and €1,500 for a jointly assessed couple. It was also amended to allow parents to claim for students in “digs” or rent-a-room accommodation, these changes were estimated to cost an additional €88 million for the year 2024 over the 2022 and 2023 costs.
In this year’s Budget I announced I was increasing the value of the credit by €250, bringing it to €1,000 for a single person and €2,000 for a jointly assessed couple for 2025. This increase is estimated to cost an additional €65 million for 2025 over the original 2024 cost.
As the RTC sunsets on 31 December 2025, there is no estimated cost in respect of 2026 and 2027.
Finally, Revenue has advised me that the actual cost of the RTC for the year 2022 (the most recent year in respect of which data are available) was €156 million. However, it should be noted that further claims in respect of 2022 may yet arise.
69. Deputy Pearse Doherty asked the Minister for Finance the level of increased compliance achieved in 2023, projected to achieve in 2024; the strategies used to achieve this; and if he will make a statement on the matter. [40546/24]
View answerIt is understood that the Deputy is referring to the additional tax revenues anticipated to arise from enhanced Revenue compliance activities during 2023 and 2024, as set out in the ‘Budget 2023 – Tax Policy Changes’ and ‘Budget 2024 – Tax Policy Changes’ documents, both published on those year’s respective Budget Days.
I am advised by Revenue that a report in respect of the Budget 2023 compliance measures was published alongside, the Revenue 2023 Annual Report in April 2024, this is available on the Revenue website at the following link www.revenue.ie/en/corporate/information-about-revenue/statistics/reviews/evaluation-budget/index.aspx.
The report concluded that the target of €80 million in additional yield from compliance measures was met.
Revenue have further advised that a report in respect of Budget 2024 compliance measures will be published alongside, the Revenue 2024 Annual Report in April 2025.
70. Deputy Pearse Doherty asked the Minister for Finance the estimated first- and full-year cost of making the R&D tax credits payable to small and micro companies within 12 months; and if he will make a statement on the matter. [40547/24]
View answerIt is assumed that the Deputy is referring to the Research and Development (R&D) tax credit under section 766C of the Taxes Consolidation Act 1997, specifically, accelerating the second and third instalments of the tax credit for small companies incurring expenditure on qualifying research and development activities.
The R&D Tax Credit is an important feature of the Irish Corporation Tax (CT) system. The primary policy objective is to increase business R&D in Ireland, as R&D can contribute to higher innovation and productivity. More broadly, the tax credit forms part of Ireland’s corporation tax offering aimed at attracting FDI and building an innovation-driven domestic enterprise sector. The credit enables Ireland to remain competitive in attracting quality employment and investment in R&D.
Finance Act 2022 introduced changes to the manner in which the R&D tax credit is claimed and provided for an amount of the credit, up to a maximum of €25,000 (referred to as the first-year payment threshold) to be payable in year one instead of being spread over 3 annual payments. The first-year payment threshold was increased to €50,000 in Finance (No.2) Act 2023 and, as announced in Budget 2025, I intend to bring forward an amendment in Finance Bill 2024 to increase the first-year payment threshold to €75,000. These increases provide a cash-flow benefit for smaller R&D projects and are aimed at encouraging more companies to engage with the R&D corporation tax credit regime.
I am advised by Revenue that the cost of the R&D credit claimed by small and micro companies in 2022, the most recent year for which data were available, was €77m, of which €43m related to second and third year instalments. However as noted above, the first year payment threshold (the amount up to which an R&D claim is payable in full in the first year) was introduced in 2022 at €25,000. It was subsequently increased to €50,000 for 2024 and is increasing further to €75,000 in Budget 2025. As a result, claims in respect of qualifying R&D expenditure in a year of up to €250,000 will be payable in full in the first year, therefore it is expected that the majority of R&D claims by small and micro companies will be payable in full in the first year, going forward. Based on data currently available, it is not possible to estimate the cost that would be associated with accelerating the payment for small and micro companies incurring annual R&D costs in excess of that amount.
For the Deputy’s information, Revenue’s statistical information in respect of the Research & Development (R&D) credit, for all years up to 2022, is available at the following link: www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/index.aspx.
72. Deputy Pearse Doherty asked the Minister for Finance the estimated savings on a first- and full-year basis of removing tax credits on incomes above €100,000 taking into account the tax changes announced as part of Budget 2025; and if he will make a statement on the matter. [40635/24]
View answerI assume the Deputy envisages that the removal of credits will apply to the personal tax credit, PAYE tax credit and the earned income tax credit, and that the credits will be removed in a tapered way, rather than a complete withdrawal of credits when income exceeds €100,000. Revenue have advised that they are providing their estimates on the basis that these credits would be tapered by 2.5% per €1,000, resulting in no benefit from these credits for those on incomes in excess of €140,000. It is further assumed that the tapering will apply on an individualised basis, that is, that the relevant income will be the incomes of an individual and not that of the taxpayer unit as a whole (jointly assessed cases are counted as one taxpayer unit).
I am advised by Revenue that their micro-simulation modelling tool, Tax Modeller (TM), is built to model scenarios on a taxpayer unit basis (i.e., including jointly assessed couples as taxpayer units). It is not possible to estimate tapering of tax credits on an individual basis for a projected tax year using TM. However, incomes recorded on historic tax returns can be used to estimate the potential yield associated with the tapering of tax credits. As 2022 is the latest year for which full tax return data is currently available to be analysed (i.e., for both PAYE and self-assessed taxpayers), Revenue have carried out this estimate requested in relation to the 2022 tax year.
I am advised by Revenue that the estimated additional first year and full year tax yield from the proposal outlined are €395m and €475m respectively.
It should be noted that although the values of the personal tax credit, PAYE tax credit and the earned income tax credit have increased since 2022, (as provided for in Budget 2023, 2024 and 2025), the 2022 values for the credits were utilised for consistency purposes in preparing these estimates which refer to the 2022 tax year.
73. Deputy Pearse Doherty asked the Minister for Finance the estimated savings on a first and full year basis of extending a 1% stamp duty of all share buybacks; and if he will make a statement on the matter. [40637/24]
View answerI am advised by Revenue that, as details of share buybacks are not reported on tax returns, there is no available data on Revenue records upon which to base an accurate estimate of the potential savings raised by extending the 1% rate of Stamp Duty to all forms of share buybacks.
I would also refer the Deputy to the answer given to his PQ 31960/24, answered on 23 July this year. The estimates provided in that response were primarily based on an assessment of publicly available information. As it is not possible to ascertain if such information fully reflects all share buyback transactions, this information is no longer used by the Department as a basis to estimate the volume of share buy back transactions.
Finally, it should be noted that estimates in respect of changes to the rate of Stamp Duty applied to shares more generally are included in Revenue’s Ready Reckoner, which is published on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx. An update of the Ready Reckoner is due to issue in the coming weeks.
74. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue saved were the loan to value ratio under the help-to-buy scheme increased to 85%; and if he will make a statement on the matter. [40638/24]
View answer75. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue saved were the maximum amount of relief under the help-to-buy scheme reduced to €25,000, €20,000, €15,000, €10,000, and €5,000 respectively with a loan to value ratio increased to 85%; and if he will make a statement on the matter. [40639/24]
View answerI propose to take Questions Nos. 74 and 75 together.
I am advised by Revenue that the estimated reduction in the cost of the Help to Buy scheme that would be achieved by implementing the proposals outlined by the Deputy are outlined in the below table. These estimates are based on claims approved in 2023. The total cost of approved claims in 2023 was €185m.
|
Proposal |
Reduction in Cost €m |
|
Loan to value ratio of a minimum of 85% |
90 |
|
Loan to value ratio of a minimum of 85% and maximum relief of €25,000 |
105 |
|
Loan to value ratio of a minimum of 85% and maximum relief of €20,000 |
120 |
|
Loan to value ratio of a minimum of 85% and maximum relief of €15,000 |
135 |
|
Loan to value ratio of a minimum of 85% and maximum relief of €10,000 |
150 |
|
Loan to value ratio of a minimum of 85% and maximum relief of €5,000 |
170 |
76. Deputy Pearse Doherty asked the Minister for Finance to outline the details and rationale for extending the rent relief to pre-letting expenses announced as part of Budget 2025; the number of people that will benefit from this relief; and if he will make a statement on the matter. [40640/24]
View answerSection 97A Taxes Consolidation Act 1997, introduced in Finance Act 2017, allows a deduction (capped at €10,000 per premises) from rental income for certain pre-letting expenditure on properties which have been vacant for at least six months and are subsequently let. To qualify, the expenditure must be incurred in the twelve months immediately prior to the letting.
Relief for pre-letting expenses for landlords is being extended to continue to help owners of vacant property to bring that accommodation into the rental system increasing the overall supply of rental accommodation.
As the measure is demand led, it is not possible to state how many claims will be made in the future. However, the number of people who have availed of this relief is available on Revenue's Cost of Tax Expenditures Table at the below link:
www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/cost/costs-expenditures.aspx.
For the ease of the Deputy I have provided a table of the number of people who have availed of the relief from inception of the scheme to 2022 (the most recent date for which data are available) below:
|
Year |
Claims |
|
2022 |
1,008 |
|
2021 |
1,009 |
|
2020 |
1,012 |
|
2019 |
1,031 |
|
2018 |
1,101 |
|
2017 |
677 |
77. Deputy Pearse Doherty asked the Minister for Finance if a developer will be exempt from the residential zoned land tax if they are leasing the land for economic activity such as farming; and if he will make a statement on the matter. [40642/24]
View answerResidential Zoned Land Tax (RZLT) applies to land zoned for residential development, which also has the necessary services in place for the development of housing. The aim of this tax is to increase the supply of land for building. It will be charged at 3% of the market value of the land every year.
The tax will be due and payable from 2025 onwards in respect of land which fell within the scope of the tax on or before 1 January 2022, or which first became both zoned for residential use and serviced in the course of 2022, as where land is zoned or serviced after 1 January 2022, the tax will be first due in the third year after the year in which it comes within scope.
There are existing exemptions that apply to RZLT one such exemption applies to land that is within the scope of the tax but is subject to a contract that was entered into prior to 1 January 2022. The period of the relevant contract is deemed to be the period during which development is precluded under the terms of the contract.
For 2025, if landowners seek to have their land rezoned, in order to reflect economic activity they carry out on their land, an exemption to the Residential Zoned Land Tax will apply for one liability. The exemption and rezoning opportunity will be supported by guidelines issued by the Minister for Housing, Local Government and Heritage to local authorities. The guidelines will indicate that local authorities should consider and accommodate rezoning requests in situations where landowners seek to continue undertaking existing economic activity.
78. Deputy Darren O'Rourke asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the amount of carbon tax revenue allocated to each Department, in each year from 2020 to 2024; the amount unspent in each Department, in each year from 2020 to 2024; the proportion of the revenue spent on climate action measures per Department, in each of the years from 2020 to 2024; the amount revenue spent on climate action measures per Department, in each of the years from 2020 to 2024, in tabular form; and if he will make a statement on the matter. [40385/24]
View answer79. Deputy Darren O'Rourke asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to outline the ringfenced measures that carbon tax revenue may be spent on, in each department, in tabular form; and if he will make a statement on the matter. [40386/24]
View answer80. Deputy Darren O'Rourke asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he is aware of any instances when carbon tax revenue was not spent on agreed upon ring-fenced measures; and if he will make a statement on the matter. [40387/24]
View answer81. Deputy Darren O'Rourke asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to outline how his Department tracks the way carbon tax revenue is spent; and if he will make a statement on the matter. [40388/24]
View answerI propose to take Questions Nos. 78 to 81, inclusive, together.
The response below provides a composite answer to Questions 40385/24, 40386/24, 40387/24, and 40388/24.
In Budget 2020, the Minister for Finance announced that the projected revenue raised by a €6 increase of the carbon tax in 2020 would be ring-fenced to protect those most exposed to higher fuel and energy costs, to support a just transition for displaced workers, and to invest in new climate action. The Revenue Commissioners estimated the total additional tax take would be €90m, which this Department allocated to 10 specific measures across 6 Departments. Details on these allocations are outlined in a Staff Paper published by my Department and available on gov.ie.
With the exception of one such programme (a once-off €20m DHLGH pilot Housing Regeneration programme), these measures continue to be funded from the carbon tax funds on an annual basis (€70m of the overall projected increases). This annual €70m now forms part of the allocations for delivery of existing levels of service on these programmes.
In the Programme for Government - Our Shared Future, the Government committed to increasing the carbon tax to €100 per tonne by 2030, and ring-fencing all resulting revenues raised from the increase in carbon tax rates, estimated to be €9.5 billion, to be spent on 3 objectives:
• Ensure that the increases in the carbon tax are progressive by spending €3 billion on targeted social welfare and other initiatives to prevent fuel poverty and ensure a just transition;
• Provide €5 billion to part fund a socially progressive national retrofitting programme;
• Allocate €1.5bn of funding to encourage and incentivise farmers to farm in a greener and more sustainable way.
From Budget 2021 to date, all additional funds are now subject to pro-rata division per annum between the relevant policy Departments to part-fund relevant spending programmes, and these funds have been allocated in full to Departments in line with these commitments on an annual basis. The allocations to each Department over the period requested are outlined in the table below:
|
Department |
2020€m |
2021€m |
2022€m |
2023€m |
2024€m |
|
DECC |
30.5 |
121 |
210 |
299 |
388 |
|
DSP |
21 |
69 |
174 |
218 |
262 |
|
DAFM |
3 |
23 |
3 |
81 |
113 |
|
DTransport |
10.5 |
20 |
20 |
20 |
20 |
|
DHLGH |
25 |
5 |
5 |
5 |
5 |
|
Total |
90 |
238 |
412 |
623 |
788 |
The climate action and just transitionary measures to which these funds have been allocated is outlined in an annual Budget publication. These are available for download from the gov.ie website:
• Budget 2020: www.gov.ie/pdf/?file=https://assets.gov.ie/181037/e57b047c-5cad-49e1-94a3-96c90dbeff7f.pdf
• Budget 2021: www.gov.ie/pdf/?file=https://assets.gov.ie/90878/b97737a2-a8d7-41e3-9b1a-53fc0822c20f.pdf
• Budget 2022: www.gov.ie/pdf/?file=https://assets.gov.ie/201264/5c96e5cd-b663-4887-bf2e-e13a393ffc50.pdf
• Budget 2023: www.gov.ie/pdf/?file=https://assets.gov.ie/235732/93f95f31-bc1e-4823-993f-af16492fe628.pdf
• Budget 2024: www.gov.ie/pdf/?file=https://assets.gov.ie/273321/07262fac-d631-4b1c-a3eb-1e103bfec2ce.pdf
As part of Budget 2025, as per Sections 27, 28 & 29 of the Finance Act 2020, the carbon tax increased by €7.50 a tonne. The increase on transport fuels is effective from 9 October 2024, while the increase on home heating fuels will not take place until 1 May 2025.
In total, €951 million has been allocated as part of Budget 2025 to climate action measures and to ensure the most vulnerable are protected from unintended impacts of the tax increase. This represents an increase of €163 million on the amount allocated from carbon tax increases in 2024. Measures, relevant Departments, and the proportional allocation for each is outlined in tabular form below.
|
Department |
Measure Funded |
2025 Allocation (€m) |
2025Additional (€m) |
2024 Allocation (€m) |
|
DECC |
Residential & Community Energy Efficiency |
469 |
+89 |
308 |
|
DECC |
Green Climate Fund |
2 |
- |
2 |
|
DECC |
Just Transition Fund |
6 |
- |
6 |
|
DSP |
Targeted Social Protection Interventions |
306 |
+44 |
262 |
|
DAFM |
Incentivising Green & Sustainable Farming |
140 |
+30 |
110 |
|
DAFM |
Green Agricultural Pilots |
3 |
- |
3 |
|
D/Transport |
Greenways/Urban Cycling |
9 |
- |
9 |
|
D/Transport |
EV charging infrastructure |
3 |
- |
3 |
|
D/Transport |
Providing Grants for EVs |
8 |
- |
8 |
|
DHLGH |
Peatlands Rehabilitation |
5 |
- |
5 |
|
Total |
951 |
+163 |
788 |
As in previous years, a number of measures included in the allocation in Budget 2025 represent the continuation of funding for specific measures put in place in Budget 2020, with the revenue raised by the initial €6 increase in the carbon tax from €20 to €26 in that year. Funding for these programmes, totalling €70 million, is included in the total outlined above.
Further details of these allocations are provided in the Budget 2025 ‘The Use of Carbon Tax Funds’ paper published on 1 October 2024, which is available at www.gov.ie/pdf/?file=https://assets.gov.ie/306466/9df7f0b0-68af-49a4-a494-20be0bf1e452.pdf. The Revised Estimates for the Public Service (REV) 2025 will contain further detail on the subhead level allocations to relevant programmes, and will also be available at gov.ie once published.
Monitoring and oversight of expenditure on programmes in receipt of carbon tax funding takes place through the standard expenditure policies and procedures that are applied to all Government expenditures. As such, all subheads in receipt of funding as a result of increases in the carbon tax are subject to the usual mechanisms which apply to the agreement. This involves the monitoring and reporting of voted allocations as set out in the Public Financial Procedures, which seeks to ensure administrative efficiency and accuracy in public expenditure. It is ultimately the responsibility of the Accounting Officer to ensure funds under their control are spent appropriately. This includes the responsibility for accounting for any underspends against allocations.
