Written Answers Nos. 98-117
98. Deputy Conor Sheehan asked the Minister for Finance to outline the number of housing units realised in the cities of Dublin, Cork, Galway, Kilkenny, Limerick and Waterford, by city, that have received tax incentives under the Living Cities initiative since July 2022, all of 2023, 2024 and to date in 2025, in tabular form; and if he will make a statement on the matter. [55744/25]
View answerThe Living City Initiative (LCI) is a targeted measure which is aimed at very specific areas in urgent need of regeneration, it is provided for under sections 372AAA to 372AAD of the Taxes Consolidation Act 1997. It currently offers income or corporation tax relief for qualifying expenditure incurred in the refurbishment and conversion of qualifying residential and commercial buildings located within ‘Special Regeneration Areas' (SRAs) of the cities of Cork, Dublin, Galway, Kilkenny, Limerick and Waterford.
I am advised by Revenue that it is not possible to identify from the Income Tax and Corporation Tax tax returns the number of properties made available to the housing market through the LCI as requested by the Deputy.
I am further advised by Revenue that information in relation to the LCI can be found in the cost of tax expenditure report on the Revenue website at:
www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.pdf.
Details of this information are set out below:
|
Year |
No. of Claims |
Cost of Relief (€m) |
|
2022 |
89 |
1.1 |
|
2021 |
65 |
0.5 |
|
2020 |
59 |
0.4 |
|
2019 |
60 |
0.5 |
|
2018 |
29 |
0.2 |
|
2017 |
23 |
0.2 |
|
2016 |
15 |
0.2 |
|
2015 |
13 |
0.2 |
|
2014 |
<10 |
0.1 |
|
2013 |
<10 |
0 |
|
2012 |
<10 |
0 |
|
2011 |
<10 |
0 |
|
Total |
c. 400 |
3.4 |
99. Deputy Emer Currie asked the Minister for Finance the number of staff working in each of Revenue’s frontier management branches as of the end of September 2025; the level of funding allocated in 2025 for these staff; and if he will make a statement on the matter. [55575/25]
View answer100. Deputy Emer Currie asked the Minister for Finance if there has been an increase during 2025 in the number of x-ray scanners available to the Revenue Commissioners for detection of smuggling; and the plans for further investment in scanners in Budget 2026. [55577/25]
View answerI propose to take Questions Nos. 99 and 100 together.
I am advised by Revenue that as part of the redevelopment of Rosslare Europort, a new high energy X-ray gantry system will be deployed in October 2025. This is the first high energy X-ray gantry system to be deployed in the State and will be used to scan containerised freight and vehicles as required.
In addition, so far this year Revenue have procured in total five baggage X-ray systems to be deployed at Dublin Airport, Shannon Airport, Kerry Airport and Cork Airport. These scanners were funded under the EU Customs Control Equipment Instrument (CCEI) and represent a combination of additional capacity and upgrade of older systems. A handheld X-ray system was also procured to bring our current capacity of handheld scanners to eight.
In 2026, Revenue plans to procure a specialised backscatter van. This is in addition to the current backscatter van based in Dublin Port. A backscatter van is a low power X-ray scanner mounted in a standard van that is used to scan vehicles, trailers and other light vehicles.
Revenue also plan to upgrade two of their older parcel scanners based in the mail centres. These scanners will be part funded under the EU CCEI.
The number of X-ray systems are kept under regular review by Revenue having regard to ongoing risk assessment of smuggling and criminal activities and evolving operational needs.
Revenue provide a breakdown in the table below of the total number of staff working in each of Revenue’s Frontier Management Branches. Such staff are involved in a range of trade facilitation & enforcement duties.
|
Frontier Management Branch |
No. of staff assigned at end September 2025 |
Salary cost as at end September 2025 |
|
Dublin Port Branch |
285 |
€11,477,708 |
|
Dublin Airport Branch |
202 |
€8,358,121 |
|
South East Branch |
203 |
€8,063,029 |
|
South Branch |
104 |
€4,801,398 |
|
East/West Branch |
88 |
€4,748,730 |
|
Total |
882 |
€37,448,986 |
This Government has been consistent in its strong support for ensuring that Revenue has the necessary resources to fulfil its mandate in respect of functions that are critical for its effective functioning as a tax and customs administration.
101. Deputy Emer Currie asked the Minister for Finance the rules which apply to the setting of reduced VAT rates for categories of goods and services subject to a historic VAT derogation. [55583/25]
View answerThe setting of VAT rates is subject to the EU VAT Directive, with which Irish VAT law must comply. The Directive generally holds that all goods and services are subject to VAT at the standard rate which must be set at a minimum of 15%. The exception to this is whether a good or service is listed under Annex III of the Directive where either a reduced rate or a VAT exemption may be applied.
Under Article 105a of the Directive, Member States who were applying rates lower than the minimum to goods and services not laid out under Annex III on 1 January 2021 may still apply those rates without prejudice. This is the current basis for maintaining a reduced rate of VAT via a historical derogation.
In availing of this derogation, a VAT rate must not be set below 12%. Ireland currently has two reduced VAT rates: 13.5% and 9%. As a result of this, the 13.5% rate applies to several categories of goods and services that are deemed to be "parked" and cannot be lowered below 12%.
102. Deputy Emer Currie asked the Minister for Finance the steps the Revenue Commissioners will take to ensure that the electronic products tax is being paid on all eligible products; and if inspections will be carried out in retail premises who sell vaping products. [55604/25]
View answer103. Deputy Emer Currie asked the Minister for Finance if the retail licensing system will be used to inspect retailers and products for sale as a mechanism for helping to enforce the electronic products tax; and if he will make a statement on the matter. [55605/25]
View answer104. Deputy Emer Currie asked the Minister for Finance the metric the Revenue Commissioners use to determine when stock supplied before 1 November is cleared from the market and the stock in the market which is liable for excise, considering that the Revenue Commissioners have confirmed that only stock first supplied after 1 November will be subject to excise tax, and not product already supplied; and if he will make a statement on the matter. [55606/25]
View answer105. Deputy Emer Currie asked the Minister for Finance if his Department carried out an assessment on the impact the introduction of excise on vaping products will have on cross-Border trade given that excise will not be applied to vaping products in Northern Ireland. [55612/25]
View answer106. Deputy Emer Currie asked the Minister for Finance the way in which the Revenue Commissioners will collect and publish data on the enforcement of the electronic products tax. [55613/25]
View answer107. Deputy Emer Currie asked the Minister for Finance the penalties that will be in place for suppliers, including retailers, who are found to have supplied product without registering for and paying electronic products tax. [55614/25]
View answerI propose to take Questions Nos. 102, 103, 104, 105, 106 and 107 together.
The E-Liquid Products Tax (EPT) was legislated for in Finance Act 2024 and will come into effect from 1 November 2025.
Revenue is currently engaging with stakeholders and suppliers to ensure they are prepared in advance of the commencement date. Revenue has published detailed guidance on its website including the publication of two new manuals which outline how the tax will operate, provide a step-by-step explanation of the registration process and detail on how suppliers can comply with their filing and payment obligations. As part of its information campaign Revenue has also met with industry representative groups to provide guidance on the operation of the tax.
The Deputy has asked about Revenue’s compliance programme for EPT. I am advised by Revenue that in designing the tax, a number of key administrative issues were considered including clear identification of what is to be taxed, the basis of assessment, the point of taxation and the liable person. Central to these considerations was ensuring that the tax was designed to encourage voluntary compliance by minimising the administrative burden on compliant taxpayers while enabling Revenue to identify and address non-compliance.
As with all taxes, Revenue’s focus in relation to EPT will be on providing support to taxpayers who are seeking to comply with their obligations, while actively working to identify and pursue those who are not. As the new tax becomes established, Revenue will undertake appropriate compliance work to ensure that businesses are properly registering, filing, and paying.
Revenue fully utilises a comprehensive legislative framework that has been enacted by the Oireachtas to support its work against those who do not comply with their tax obligations, including the EPT. In accordance with section 65 of Finance Act 2024, it is an offence for any person to fail to comply with their EPT obligations. Such persons may, on summary conviction, be liable to a Class A fine. Furthermore, as EPT is an excise duty, relevant provisions of General Excise legislation set out in Finance Act 2001, as amended, are also available. These provisions provide for the raising of estimates and/or assessments to collect underdeclared EPT liabilities. Section 99C of Finance Act 2001 also provides for tax-geared penalties for carelessly or deliberately making incorrect returns or failing to make returns.
Revenue uses a range of risk identification, assessment and evaluation programmes to monitor compliance of taxes generally. These processes are supported by real-time data analytics and the interrogation of both taxpayer and third-party information, including information on relevant licensing and regulatory frameworks where available. Information from the Department of Health’s new retail licensing system which is scheduled to come into effect in February 2026 will be another resource available to Revenue in this regard. With its overall approach Revenue can identify and quantify risk, ensuring that its compliance resources are focused on the non-compliant taxpayer, minimising the administrative burden on the compliant taxpayer.
Revenue publishes details of its compliance activities across all taxes and duties in its Annual Report. Revenue also publishes lists of tax defaulters on a quarterly basis. This list includes details of persons who have made a settlement with Revenue or for whom the Court has determined a penalty relating to a settlement, or has imposed a fine or other penalty in respect of a tax or duty offence. Details of EPT settlements and/or offences will be included in these publications as appropriate.
As referred to by the Deputy, the legislation requires that only e-liquid product which is ‘first supplied in the State’ on or after 1 November 2025 will be liable for E-Liquid Products Tax (EPT). The ‘first supply in the State’ taxing model is not novel; a similar design is used for certain other excises such as Sugar Sweetened Drinks Tax and Solid Fuel Carbon Tax. This model places the tax charge at an early point in the supply chain, where there is typically a smaller number of operators, which supports effective administration and compliance. This means that importers and manufacturers of e-liquid products for sale are liable for the tax. While some shop owners may also be importers or wholesale suppliers, the majority of those required to register, file, and pay the tax, are manufacturers and importers. Revenue’s published guidance contains a number of examples of what constitutes a ‘first supply in the State’.
In relation to an assessment of cross-border trade, the sale or supply of single-use vapes in the UK and Northern Ireland has been banned as of 1 June 2025. In addition, the UK government is introducing its own excise duty on e-liquid products from 1 October 2026, known as Vaping Products Duty (VPD), which will also apply to Northern Ireland. VPD will apply at a flat rate of £2.20 per 10ml on all e-liquids, both nicotine-containing and non-nicotine containing.
Businesses who source all their e-liquid products from other businesses in the State will not be required to register for the tax. Nonetheless, once operational, Revenue will carry out interventions and inspections for EPT on a risk basis, and this will include relevant suppliers and other entities in the supply chain as required.
Further information regarding EPT is available on the Revenue website. If suppliers have queries regarding the operation of the tax, they may contact Revenue directly via MyEnquiries or by email to tobacco@revenue.ie.
108. Deputy Malcolm Byrne asked the Minister for Finance if his Department is using agentic AI in the delivery of its services or operations; if it is considering the use of agentic AI, and in what contexts; and if he will make a statement on the matter. [55697/25]
View answerI can confirm for the Deputy that my department follows the Government approved Guidelines for the Responsible Use of Artificial Intelligence (AI) in the Public Service as approved in May 2025. In addition, my department follows guidance from the National Cyber Security Centre (NCSC) including “Cyber Security Guidance on Generative AI for Public Sector Bodies” released in June 2023. The NCSC guidance recommended that new technology should only be adopted based on a clearly defined business needs following an appropriate risk assessment.
I can confirm for the Deputy that my Department does not use agentic AI in the delivery of its services or operations.
109. Deputy Conor D. McGuinness asked the Minister for Finance if cinemas will be covered by the reduced vat rate of 9% announced in Budget 2026. [55723/25]
View answer111. Deputy Shónagh Ní Raghallaigh asked the Minister for Finance if he will consider extending the new VAT reduction for the hospitality sector to cinemas; and if he will make a statement on the matter. [55750/25]
View answer116. Deputy Robert O'Donoghue asked the Minister for Finance if he will consider extending the recent reduction in VAT from 13.5% to 9% to include cinema admissions, in recognition of the similar economic pressures faced by the sector, including rising energy and wage costs, incomplete post-pandemic recovery and competition from global streaming platforms, and given the vital role that local and independent cinemas play in supporting employment, community activity and town centre footfall; and if he will make a statement on the matter. [55888/25]
View answerI propose to take Questions Nos. 109, 111 and 116 together.
The Programme for Government has committed to support small and medium enterprises, especially those in the retail and hospitality sectors. The VAT reduction announced in Budget 2026 will apply to food and catering services and to hairdressing services.
The measure will not apply to entertainment such as admissions to cinemas, theatres, museums, fairgrounds, and amusement parks.
The 9% VAT rate already applies to magazines and periodicals and to admission to sports facilities.
It is not proposed to change the scope of the measure at this time.
110. Deputy Aisling Dempsey asked the Minister for Finance if he would consider allowing farmers to average their taxable income over a multi-year period; and if he will make a statement on the matter. [55749/25]
View answerA farm income stabilisation tax measure currently exists in the form of income averaging. Section 657 of the Taxes Consolidation Act 1997 allows farmers to pay tax based on the average of five years’ farming profits and losses.
The measure allows eligible farmers to be charged tax on the average of the aggregate farming profits and losses over a five-year period. Tax is charged on the average income of the year in which the election is made and the four tax years immediately preceding that year, thus smoothing their tax liability over a five-year cycle.
Further details on income averaging can be located on Revenue's website, at the following link: www.revenue.ie/en/self-assessment-and-self-employment/farm/farming/income-averaging.aspx.
112. Deputy Aindrias Moynihan asked the Minister for Finance the reasoning for the reduction in the farmer’s flat rate payment under VAT from 5.1% to 4.5%. [55806/25]
View answerThe Flat-Rate Addition is reviewed each year in the run-up to the Budget in accordance with criteria set down in the EU VAT Directive. It is based on macro-economic data (i.e. agricultural inputs and production and the prevailing VAT rate structures) averaged over the preceding three years.
Revenue’s calculations based on data for 2023, 2024 and 2025 suggest that full compensation can be achieved by decreasing the rate to 4.5%. The methodology takes account of the final estimates of farming inputs, outputs and the VAT rate structures for 2023 and 2024, and a provisional forecast of agriculture inputs and outputs in 2025 as provided by the CSO, and the VAT rate structure for 2025.
The calculation of the Farmer’s Flat Rate for 2026 includes a tentative estimate of current year (2025) farming inputs and outputs, which will be subject to future revision.
In line with this, the rate will be reduced from 1 January 2026 as per the announcement in Budget 2026.
113. Deputy Emer Currie asked the Minister for Finance when he expects to publish the Research and Development Compass referred to in his Budget 2026 speech; if he will engage with key stakeholders, including industry representatives, to ensure that proposed reforms are practical and reflect the realities of how R&D is conducted in Ireland; and if he will make a statement on the matter. [55878/25]
View answer114. Deputy Emer Currie asked the Minister for Finance if the Research and Development Compass will benchmark Ireland’s R&D tax credit regime against those of other EU or OECD countries to assess international competitiveness; and if he will make a statement on the matter. [55879/25]
View answer115. Deputy Emer Currie asked the Minister for Finance the intended purpose and format of the forthcoming Research and Development Compass referenced in his Budget 2026 speech; if he will confirm whether it will take the form of a stand-alone publication or inform the development of a wider policy framework; and if he will make a statement on the matter. [55880/25]
View answerI propose to take Questions Nos. 113, 114 and 115 together.
Ireland first introduced a tax credit for R&D in 2004, which is available to all companies within the charge to Irish tax who carry out qualifying R&D activities. The policy objective of the R&D tax credit is to increase business R&D in Ireland as R&D supports high-value employment and can contribute to higher innovation and productivity.
The Programme for Government ‘Securing Ireland’s Future’ made a commitment to review the Research and Development (R&D) tax credit regime and to examine options to enhance the R&D tax credit, reward innovation and digitalisation. As part of this review a public consultation on the ‘R&D Tax Credit and on Options to Support Innovation’ was conducted. Twenty-six responses to the consultation were received from a range of respondents, including companies engaged in R&D activities, advisory firms, representative bodies and Government Departments. The responses to the consultation have been published on my Department’s website. In addition to the consultation, officials from my Department engaged with stakeholders throughout the year through meetings, roundtable discussions and prebudget submission meetings.
This consultation process, together with pre-Budget submissions received across the year, has informed the development of the R&D Compass. The consultation process also provided valuable input into policy considerations for enhancing the regime in Budget 2026. On Budget Day I announced the increase in the rate of the R&D tax credit from 30% to 35%, which will be of benefit to all claimant companies, and an increase in the first-year payment threshold from €75,000 to €87,500 to support smaller R&D projects. Further details of these measures will be included in the Finance Bill.
Although there has been no specific benchmarking analysis conducted as part of the Compass, I am cognisant of the fact that Ireland’s tax regime and R&D regime need to continue to be competitive, and in line with international best practices. I would also note that tax is just one aspect of Ireland’s competitive offering, there are a suite of factors that are taken into account by businesses when determining if a location is competitive. An important factor often cited by businesses is Ireland’s consultative approach to policy making. Throughout a period of significant change in global taxation, frequent consultation and signposting of future developments by my Department, for example by Corporation Tax Roadmaps, has provided certainty to stakeholders to allow them make investment decisions with confidence. The R&D Compass, which I will publish in the coming weeks, will be a standalone publication in that it focusses specifically on the R&D tax credit and potential supports for innovation, but it forms part of my Department’s wider approach to policy development.
The R&D Compass will provide stakeholders with information on potential future enhancements and areas of focus with regard to the Research and Development Tax Credit, to better align with industry practices. It will also set a pathway for development of innovation supports. This ongoing work will confirm that this Government recognises the importance of ensuring that Ireland remains attractive as a location for quality employment and investment in high value R&D and innovative activities by both domestic and international companies.
117. Deputy Louis O'Hara asked the Minister for Finance the actions his Department and the Revenue Commissioners are undertaking to ensure that personal service professionals who operate their services from their home are tax compliant (details supplied); and if he will make a statement on the matter. [56005/25]
View answerI am informed by Revenue that tax compliance programmes are kept under constant review to ensure that they are focused on the areas of greatest risk, including risks from the shadow economy. Challenging shadow economy activity and actively restricting opportunities for deliberate tax and duty evasion continues to be an organisational priority for Revenue. Since 2021, a sectoral shadow economy project has been in operation, targeting outdoor visits and customer contacts across a range of business sectors including personal service professionals.
In order to get a clear understanding of issues facing the personal service industry, Revenue officers met with representatives including the Irish Hair and Beauty Industry Confederation (HABIC) in June 2022 and with representatives from the Irish Hairdressers Federation (IHF) in June 2024. Revenue officers also meet regularly with representatives from other State agencies such as the Workplace Relations Commission and the Department of Social Protection, using agreed frameworks to share information on the shadow economy and identify opportunities for collaboration and joint operations.
During the period 2022 to 2024, Revenue has advised me that it completed 792 compliance interventions in addition to 590 appraisals in the hair and beauty sector, generating total yield of €609,421. From January 2025 to 31 August 2025, 252 compliance interventions were completed in addition to 81 Appraisals in the hair and beauty sector, generating total yield of €115,218.
Revenue urges businesses in the hair and beauty sector and members of the public to report suspicions of tax and duty evasion to Revenue using one of several channels, such as a Tax Evasion (Shadow Economy Activity) Report Form on the Revenue website. All reports are treated as confidential.
Further information can be found on Revenue’s website at the following link: www.revenue.ie/en/corporate/assist-us/reporting-shadow-economy-activity/reporting.aspx.
