Written Answers Nos. 168-196
179. Deputy Aindrias Moynihan asked the Tánaiste and Minister for Finance the up-to-date statistics on inflation in Ireland, specifically with regard to essential goods and services; the steps being taken to address continuing rising living costs; and if he will make a statement on the matter. [73065/25]
View answerSignificant support to households and businesses has been provided over the last four years to help absorb the worst impact of higher prices.
The temporary nature of these supports balanced the need to provide assistance to the most vulnerable while, at the same time avoiding a scenario wherein fiscal policy added to inflationary pressures in the economy.
Budget 2026 strikes an appropriate balance between increasing investment and moderating the growth in day-to-day spending whilst avoiding doing anything that has such a cost that it in turn could create other difficulties for us in the time ahead.
After fluctuating at rates of around 2% in the first eight months of the year, annual inflation accelerated in September and, subsequently, breached the 3% rate in November (when the annual rate of CPI inflation reached 3.2%).
Importantly, the Central Statistics Office has noted that the elevated annual inflation rate seen since September has reflected, in-part, so-called 'base effects' arising from the very weak readings recorded in autumn last year.
Inflation in the broad services sector has been the primary driver of inflation this year. Prices for many services are usually related to the strength of domestic economic conditions, including in the labour market.
In general, energy prices have reduced overall inflation this year. More recently, however, energy prices have boosted the headline rate of inflation, reflecting higher prices for fuel and electricity. In November, the annual energy inflation stood at 3.3%.
Food price inflation has been an important contributor to inflation this year, with an annual food price inflation rate of 4.2% in November. Much of this increase has been due to higher prices for agricultural commodities. Reflecting this, the recent rise in food prices has been concentrated in three categories: meats, oils and fats, and confectionary.
Government is all too aware of the impact inflation has placed on businesses and households over recent years. Government acted swiftly and decisively to mitigate the impact of rising prices.
Budget 2026 pivoted from temporary ‘once-off’ measures towards more permanent and sustainable measures, targeted at the most vulnerable in our society.
In this context, the Budget provided several measures for households, including a €10 increase in weekly social protection payments, including for pensioners, people with disabilities, carers, jobseekers and lone parents.
For families, these measures include increasing the Working Family Payment income thresholds by €60 per week for all families and an increase in the weekly Child Support Payment rates by €8 for children under 12 and by €16 for children over 12.
All households will benefit from the extension of the reduced rate of VAT on electricity and gas until the end of 2030.
For renters, Budget 2026 extended the rent tax credit for a further three years. This has proven to be a very meaningful support for renters, with almost 400,000 people benefitting from it in 2023.
Finally, it is also important to point out that, on average, wages increases are in excess of price increases. This will help support the purchasing power of households over the coming period.
181. Deputy Shay Brennan asked the Tánaiste and Minister for Finance for an update on the programme for Government commitment to draft a new strategy for the credit union sector; and if he will make a statement on the matter. [72865/25]
View answerFirstly, acknowledging the importance of credit unions, the Government retained a dedicated Minister of State with responsibility for financial services, credit unions and insurance, Minister Robert Troy T.D, who is working with Department of Finance officials on all the Programme for Government commitments, in conjunction with the sector.
Amongst these commitments, is the intention to draft a five-year strategy for the credit union sector. Both the Minister of State, Deputy Troy, and I intend to co-sponsor a project plan with the credit union sector to determine the sector's long-term strategy.
I have instructed my officials to draft a member focussed project plan to deliver on this commitment, which will be inclusive and owned by the sector. I expect that in early 2026, both the Minister for State and I will have the opportunity to consider this project plan.
This will be a strategy developed and implemented by credit unions, as credit unions are best placed to understand and respond to their members' needs. I expect that this strategy will be owned by the credit union sector, be member focused, and will build on the many fundamental strengths of the sector. The credit union sector is diverse, and each credit union is independently governed. I expect that there will be many different viewpoints that need to be listened to and considered. Substantial effort will be made by Government to engage with all stakeholders.
This will be challenging, but the achievement of an agreed sector-wide strategy for credit unions will be significant, and in the long term will provide better services to all credit union members.
However, the Government has already worked with the credit union sector to deliver the enabling provisions of the Credit Union (Amendment) Act 2023. Furthermore, since September of this year, the Central Bank of Ireland has amended lending regulations for the credit union sector which allows the sector to lend €10.1 billion across house and business lending based on current assets.
This is broken down as up to €6.75 billion in house lending and €3.375 billion in business lending, based on sector total assets of €22.5 billion as at 30 September 2025. This is a significant increase from previous permitted lending limits of €2.9 billion.
The amendment of these regulations reflects the competence and capability of credit unions to grow their respective loan books in a prudent manner, and to futureproof their offering to support homeowners and businesses.
182. Deputy Pa Daly asked the Tánaiste and Minister for Finance if he is aware Irish homeowners are paying some of the highest interest rates in the EU despite ECB rates being 2% since June 2025; and if he will make a statement on the matter. [72579/25]
View answerThe European Central Bank is responsible for monetary policy and the setting of official interest rates. Its main lending rate is currently 2.15%.
While changes in the level of official interest rates will feed through to the wider economy, it does not have a uniform impact on the level of retail interest rates. In a market economy the determination of retail and business lending rates is a commercial matter for individual creditors.
The most recent Central Bank data shows the weighted average interest rate on new mortgages was 3.56% in October. Although this is above the euro area average of 3.33%, it is almost half a percent lower than the same time last year.
While the weighted average new mortgage rate exceeded the euro average by 23 basis points in October of this year, it can be noted that this differential has narrowed over the course of the past twelve months from 51 basis points in October 2024.
The Government, in Budget 2026, maintained the mortgage interest tax credit at the current level for a further year and at a reduced level of relief for the subsequent year. This relief helps to offset the impact of the rising cost of living by providing Mortgage Interest Tax Relief for homeowners with an outstanding mortgage balance on their primary dwelling house of between €80,000 and €500,000 as of 31 December 2022. This Relief was extended in Budget 2025 and Budget 2026.
The Central Bank, through its regulatory framework, offers protection for consumers and requires that all regulated entities, including banks, retail credit firms and credit servicing firms, are transparent and fair in all their dealings with borrowers.
The revised and strengthened Consumer Protection Code will come into effect next March and will set out enhanced disclosure requirements on mortgage switching options and the impact of incentives on the overall cost of credit of a mortgage.
The banking industry has adopted an aligned industry-wide set of initial eligibility criteria to facilitate switching mortgages from a non-bank to a bank and it has introduced a website, called 'it's in your interest', to assist the mortgage switching process.
183. Deputy Sean Fleming asked the Tánaiste and Minister for Finance for if the new Ireland for Finance strategy will address the issue of deemed disposal; and if he will make a statement on the matter. [72575/25]
View answerIreland for Finance is a whole-of-government strategy for the development of the international financial services sector in Ireland. In line with Programme for Government commitments, the Department of Finance has commenced work on a new Ireland for Finance Strategy to be published in H1 2026.
Significant engagement and consultation has and will continue to take place to inform this work, including a public consultation held earlier this year which received 57 written submissions, input from the standing quarterly Ireland for Finance Joint Committee forum, and a wide range of bilateral, national and international stakeholder engagements. While the strategy is still under development, how to best support enhanced retail investment activity in Ireland, including the matter of deemed disposal, is a topic that has been raised during these engagements.
The development of a strong international financial services sector has been a key part of Ireland’s industrial policy since the 1980s, and the new whole-of government Ireland for Finance strategy will be another integral part of this.
At the end of 2024, the state enterprise agencies, Enterprise Ireland and IDA Ireland, estimated that around 60,100 people are now in direct employment in the international financial services sector.
I am committed to supporting Irish investors in leveraging the benefits of the sector. I am aware of the position of a number of stakeholders in relation to the taxation of retail investment and the application of deemed disposal in particular. It is important to ensure that any changes in this area achieve the balance between the supporting retail investment and maintaining appropriate anti-avoidance protections.
In terms of recent developments, a reduction from 41% to 38% in the taxation rate that applies to Irish and equivalent offshore funds and Irish and certain foreign life assurance products was announced in Budget 2026. This is an important first step.
I am conscious of the need to ensure that retail investment is encouraged. Work is continuing on the development of the roadmap for the taxation of retail investment, as announced in budget 2026. The roadmap is to be published early next year and will set out an approach to simplify and adapt the tax framework to further support retail investment while retaining necessary and important anti-avoidance protections in a proportionate manner. This roadmap will facilitate due consideration of the Funds Sector 2030 Report and take into account the European Commission’s recommendation on Savings and Investment Accounts.
Given the composition of the financial services sector in Ireland and its role as a gateway to Europe for global firms, Ireland has a significant role to play in achieving both EU and Irish policy goals, including in the Savings and Investments Union. This will include activity progressed under the new Ireland for Finance strategy when completed.
I am committed to taking the necessary action to support retail investment in Ireland and believe that further progress can be made to address some of the existing obstacles to greater retail investment in the coming years within the usual Budget and Finance Bill processes.
185. Deputy Grace Boland asked the Tánaiste and Minister for Finance if he has assessed the impact of reduced competition in the retail banking sector following recent exits; the measures being considered to encourage new entrants or alternative banking models; his views on the way to ensure consumer choice and competitive pricing; and if he will make a statement on the matter. [69883/25]
View answerPrimary responsibility for competition policy rests with the Department of Enterprise, Tourism and Employment. The Competition and Consumer Protection Commission is the statutory body responsible for promoting compliance with, and enforcing, competition and consumer protection law in Ireland.
In addition to the work of the Competition and Consumer Protection Commission, reviews have been carried out to ensure that the Irish banking and financial services sector remains competitive.
My Department has published two such reviews in recent years: the Retail Banking Review in November 2022 and the Report of the Funds Sector 2030 in October 2024.
Competition was one area of focus under the Retail Banking Review. One of the conclusions of the Review in this regard was that, despite the level of concentration in the market following the exits of Ulster Bank and KBC, and subject to continued strong regulatory oversight, sufficient competition will remain in the short to medium term.
The review recommended that the Competition and Consumer Protection Commission and the Central Bank of Ireland build on existing arrangements and establish closer coordination to share perspectives, information and experience on the orderly functioning of markets, consumer protection and competition in the retail banking sector.
Following this, in March 2025 the Competition and Consumer Protection Commission entered into a revised co-operation agreement with the Central Bank of Ireland.
Another related recommendation was incorporated in the Provision of Access to Cash Infrastructure Act 2025. This requires the Central Bank of Ireland to carry out and publish cost-benefit analyses of business standards and regulations it proposes to make in relation to financial service providers. Any cost benefit analysis will have to consider the impact of standards or regulations, on consumers, and on fair competition.
I would also highlight the changes to recent changes to the Credit Union Act to help facilitate the sector to play a greater role in the provision of retail banking products and services. Further the Central Bank has amended credit union lending limits enable the sector lend more for mortgages and to businesses. These measures will help increase competition in the banking sector and improve consumer choice of financial provider.
The 2025 Consumer Sentiment Banking Survey was published by my Department in October. These surveys are helpful to identify trends in consumer behaviour; including product choice, competition and innovation, which in turn feeds into evidence-based policy making.
More recently new entrants have emerged in the context of the Irish banking market, including the establishment of a new Irish branch, Avant Money, by Bankinter and the recent announcement by Monzo Bank to offer retail banking products and services via its Irish based EU headquarters.
The 2025 Consumer Sentiment Banking Survey, also noted that 66% of customers in Ireland now have more than one financial provider. These include a number of digital-only banks that offer a range of financial products and services to consumers in Ireland.
At a European level, the drive to simplify regulation and reduce administrative burdens to increase competitiveness has been incorporated into many different workstreams and these processes can assist in improving the wider competitiveness of the sector.
186. Deputy Naoise Ó Cearúil asked the Tánaiste and Minister for Finance the proportion of corporation tax receipts currently being set aside in the State’s savings funds; the extent to which this has changed since 2024; and if he will make a statement on the matter. [69880/25]
View answerThe two funds – the Future Ireland Fund and Infrastructure, Climate and Nature Fund – were created in response to the exceptional levels of corporation tax revenue we have experienced over the last number of years as well as the fiscal costs associated with demographic change.
These funds have two primary purposes which help to ensure the long-term sustainability of the public finances: they ensure that a portion of ‘excess’ corporation tax receipts are saved, rather than used to fund day-to-day expenditure, and they partially fund the expenditure costs associated with known structural challenges that the Irish economy will face, such as ageing costs and decarbonisation.
Over the course of this year, some €6 billion has been transferred from the Exchequer into the Future Ireland Fund and Infrastructure, Climate and Nature Fund. Corporation tax is projected at about €32 billion for the year, excluding the once-off proceeds from the Court of Justice of the EU ruling. In effect, therefore, we are saving around one-fifth of corporation tax receipts.
This brings the total amount that has now been saved in the two funds to over €16 billion.
In 2024, around €4 billion was transferred into the FIF and €2 billion was transferred into the ICNF from the dissolution of the National Reserve Fund. A further €4 billion was also transferred from the Exchequer to the FIF in 2024.
Next year, Government will transfer €6.5 billion into the two funds. This represents a significant portion of the €34 billion corporation tax receipts that are projected to be received in 2026.
Legislation passed by this house does not permit for drawdown from the FIF to occur until 2041. This is to provide sufficient time for the capital of the fund to grow. From 2041, the interest from the FI Fund can be withdrawn each year, up to a maximum of 3% the Net Asset Value of the Fund, maintaining the Capital and allowing the Fund to continue to grow, and provision be made for the future.
There are two mechanism by which drawdown from the ICNF may occur. Firstly up to 25% of the fund can be used to support State expenditure in a year where the Irish Fiscal Advisory Council and Minister for Finance are satisfied that there is a significant deterioration in the economic or fiscal position of the State.
Secondly, between 2026 and 2030, up to 22.5% of the value of the fund may be drawn down annually, up to a total of €3.15 billion, in order to support expenditure on designated environmental projects.
While our finances are currently in a strong position, it is essential that we take action to secure the public finances over the long term to ensure we can meet the future expenditure requirements we know will arise, that is what this Government is doing in committing to these funds.
187. Deputy Naoise Ó Muirí asked the Tánaiste and Minister for Finance his views on the way the taxation system could help citizens mitigate risks with regard to the impact of climate change, as identified in the Climate Change Risk Matrix, as published by his Department; and if he will make a statement on the matter. [69920/25]
View answerIreland’s tax system supports efforts to transition to a low carbon economy, and, over the past number of years, several tax reforms have been implemented to encourage behavioural change and support emissions reductions, including carbon tax increases and vehicle tax reforms.
Government is committed to a carbon tax regime that is progressive, with revenue raised from increases in the carbon tax since 2020 being allocated for expenditure on climate action and the Just Transition. The additional revenue raised by increasing the carbon tax is ring-fenced and used to enable transitional changes and to provide targeted social welfare and other measures to prevent energy poverty. Consistently, internal Government analysis using the SWITCH model has found that the increases in the carbon tax have been progressive due to the increased social protection payments funded by the carbon tax.
The Government has allocated €1.1 billion to climate action measures and to ensure the most vulnerable are protected from the unintended impacts of the increase in the carbon tax. This is an additional €163 million on 2025’s allocation.
This €1.1 billion expenditure is comprised of:
• €566 million to the Department of Climate, Energy and the Environment for retrofitting programmes, Just Transition and ODA-Green Climate Fund (an additional €89 million on 2025);
• €350 million for the Department of Social Protection for targeted social welfare interventions ( an additional €44 million on 2025);
• €173 million for the Department Agriculture, Food and the Marine for green & sustainable farming measures (an additional €30 million on 2025);
• €20 million for the Department of Transport for continuation of carbon tax-funded programmes since 2020; and
• €5 million for the Department of Housing, Local Government and Heritage for continuation of carbon tax-funded programmes since 2020.
The existing vehicle tax structures in the State have a strong environmental rationale, with the more pollutant, fossil-fuelled cars paying higher rates of tax, while low emission cars are subject to the lowest rates of tax. The current policy approach aims to incentivise the uptake of zero to low emission vehicles, which will support the reduction in Ireland’s transport emissions, while also fostering a more sustainable transport network.
Electric vehicles (EVs) currently benefit from a number of tax incentives, including preferential rates of benefit-in-kind (BIK), Vehicle Registration Tax relief of up to €5,000, a low annual motor tax rate, and a BIK exemption on the installation of an EV charging facility by an employer at the home of a director or employee.
Government has also introduced several tax incentives to support home energy efficiency improvements. A zero rate of VAT applies to the supply and installation of solar panels on private dwellings, while heat pumps are subject to a reduced VAT rate of 9%. The accelerated capital allowances scheme also supports the uptake of energy efficient equipment, ensuring energy savings and reduced carbon emissions.
Overall, Ireland’s tax system supports climate resilience by incentivising the uptake of zero emission vehicles, lowering long-term energy costs, and supporting households most affected by increasing fuel and heating costs through targeted supports.
Tax policy measures and options with regard to behavioural change and emissions reductions are kept under review as part of the annual Tax Strategy Group and Budgetary cycle.
188. Deputy Michael Cahill asked the Tánaiste and Minister for Finance if he is aware that financial advisers, tax consultants, accountants, and legal professionals widely regard the taxation regime for exchange-traded funds as unnecessarily complex and opaque; if he will consider addressing this issue, including through the possible deletion of Chapter 2, Part 27 of the Tax Acts; and if he will make a statement on the matter. [69525/25]
View answer213. Deputy Grace Boland asked the Tánaiste and Minister for Finance if his Department has considered reforms to the taxation and regulatory framework to encourage individuals to invest and save through exchange-traded funds (ETFs); if measures such as simplified reporting, reduced or eliminated exit tax, or inclusion of ETFs in State-backed savings schemes are under review; and if he will make a statement on the matter. [69882/25]
View answer245. Deputy Sean Fleming asked the Tánaiste and Minister for Finance for an update on tax measures to incentivise retail investing in Ireland, particularly in relation to ETFs; and if he will make a statement on the matter. [72576/25]
View answerI propose to take Questions Nos. 188, 213 and 245 together.
The Deputy has asked about the taxation regime for Exchange Traded Funds (ETFs). An ETF is a collective investment fund that is traded on a regulated stock exchange. There is no separate taxation regime specifically for ETFs. The domicile of the ETF will generally determine whether the ETF falls within the domestic gross roll-up regime or the offshore funds regime.
In general, for exit taxes applying to investment funds, the investment fund calculates and deducts any exit tax due, including for deemed disposal. However, where units in an investment fund are traded and cleared on a recognised clearing system, investors are required to calculate, return and pay the income tax on the income and gains arising from their investment in the fund on a self-assessed basis, as the fund does not have the information necessary to apply an exit tax. Investors in offshore funds also have to account for tax due through Revenue’s self-assessment system. Therefore, self-assessment applies to most ETF investments.
I am aware that the current system for the taxation of investments is complex and that the requirement for self-assessment for ETFs can contribute to this. I am committed to taking the necessary action to support retail investment in Ireland and recognise the importance of this sector. The reduction in the taxation rate that applies to Irish and equivalent offshore funds, and Irish and certain foreign life assurance products, from 41% to 38% announced in Budget 2026 is an important first step in this regard. This reduction applies to ETFs that fall within these taxation regimes.
However, I am conscious of the need for continued engagement on this issue. Budget 2026 also included a commitment to publish a roadmap for the taxation of retail investment. The roadmap is to be published early next year and will set out an approach to simplify and adapt the tax framework to further support retail investment while retaining necessary and important anti-avoidance protections in a proportionate manner, and existing legislation is being considered as part of the process of developing the roadmap.
This roadmap will facilitate due consideration of the Funds Sector 2030 Report and take into account the European Commission’s recommendation on Savings and Investment Accounts. I hope further progress can be made across coming budgets to address some of the existing obstacles to greater retail investment.
189. Deputy Cathy Bennett asked the Tánaiste and Minister for Finance if he will report on his engagement regarding the EU Multiannual Financial Framework post-2027. [73034/25]
View answerAt the outset I will clarify the key roles and responsibilities across Government in relation to the EU’s Multiannual Financial Framework (MFF).
My colleague the Minister for Foreign Affairs and Trade and I in my role as Minister for Finance jointly lead the development of Ireland’s positions in relation to the EU’s Multiannual Financial Framework (MFF). As such it is my role to update Government regularly on negotiations, in close cooperation with the Minister for Foreign Affairs and Trade and the Minister of State for European Affairs.
On 16 July and 3 September 2025, the European Commission published a series of proposals under the MFF 2028 – 2034 package, which launched the beginning of negotiations on the next long-term EU budget. Since then, Ministers and their officials across Government, led by my Department and the Department of Foreign Affairs and Trade have been analysing, at pace, the complex range of proposals which seek to reshape and restructure the MFF, and which prioritise new and emerging demands within the Union such as competitiveness, security and defence.
The General Affairs Council, which is attended by the Minister of State for European Affairs, is the Council formation carrying forward MFF negotiations. It has discussed MFF at all meetings since July 2025.
ECOFIN Council, which is composed of Finance Ministers, is noted as having a particular interest in those negotiations, due to the substantial economic and financial impacts of the MFF.
Most notably, Finance Ministers hold responsibility for the Own Resources (revenue) legislation, as well as annual negotiations on that year’s EU budget. ECOFIN held an exchange of views on the own resources package in October 2025 and is expected to return to the topic in future months.
The MFF is on the agenda for the European Council meeting of 18 December, where leaders are expected to take stock of progress in negotiations to date, and look ahead to reaching a speedy agreement.
I and my colleagues across Government regularly engage with our counterparts at Ministerial level, within the European Commission, and with other important stakeholders, notably Members of the European Parliament, as part of our day-to-day work. MFF is a topic of interest to all, given its role as a catalyst for many Union policies, from the long-standing drivers of our prosperity in the Common Agricultural Policy and cohesion, to the emerging needs of international security and global competitiveness.
In all these engagements, my colleagues in Government and I stress the areas of central importance to Ireland: most notably but not limited to a strong and ring-fenced Common Agricultural Policy and Common Fisheries Policy; continued support for the PEACE PLUS programme in Northern Ireland and the border counties of Ireland; funding for competitiveness and excellent research; sustained support for Ukraine; continued development and humanitarian assistance; and a revenue system that is fair, equitable, simple and transparent, primarily based on Gross National Income. As part of the wider simplification drive, we must ensure reduced administrative burden for beneficiaries of EU funds.
Together with my colleagues across Government, I will continue my engagements with key negotiating partners, to communicate these core requirements that Ireland needs to see in the next MFF.
190. Deputy Joe Neville asked the Tánaiste and Minister for Finance the steps his Department is taking to stimulate growth in investment such as in cryptocurrency to make it more accessible and advantageous for Irish people; and if he will make a statement on the matter. [73273/25]
View answerI am committed to taking the necessary action to support retail investment in Ireland. The reduction from 41% to 38% in the taxation rate that applies to Irish and equivalent offshore funds and Irish and certain foreign life assurance products, that was announced in Budget 2026, is an important first step in this regard.
I am conscious of the need to ensure that retail investment is encouraged. Work is continuing on the development of the roadmap for the taxation of retail investment, as announced in Budget 2026. The roadmap is to be published early next year and will set out an approach to simplify and adapt the tax framework to further support retail investment while retaining necessary and important anti-avoidance protections in a proportionate manner.
This roadmap will facilitate due consideration of the Funds Sector 2030 Report and consider the European Commission’s recommendation on Savings and Investment Accounts. I hope further progress can be made to address some of the existing obstacles to greater retail investment in the coming years within the usual Budget and Finance Bill processes.
In March, the European Commission launched the SIU Strategy, which includes measures to advance the Capital Markets Union (CMU) project. The central thrust of the Savings and Investments Union (SIU) project is to help European citizens to invest more so as to ensure that they have better financial outcomes and are better provided for in the future. Furthermore, the EU SIU project is also about trying to deepen the pools of capital that can be made available for investment purposes so as develop businesses bringing more growth to the European economy.
With specific regard to Cryptocurrency, in Ireland it is regulated by the Central Bank of Ireland under the Markets in Crypto Assets Regulation (MiCAR). Under MiCAR, crypto asset service providers issuing cryptocurrency, operating trading platforms, or offering custody services must be authorised to do so and are required to publish investor information and hold prescribed levels of reserves.
I must stress that cryptocurrencies can be highly risky and speculative and should only be invested in when the investor is fully conscious of the risks involved.
191. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance if he satisfied that his Departments current analysis of corporate tax expenditures is adequate to assess the benefit of those expenditures as against potential benefit of using those monies for more direct Government investment and expenditure to improve public services, infrastructure or achieve economic and social goals; and if he will make a statement on the matter. [69916/25]
View answerI thank the Deputy for his question on the assessment and analysis of tax expenditures, and comparisons between tax expenditure and direct investment. This is an important distinction as tax expenditures are spending conducted through the tax system rather than directly through public expenditure programmes; the distinction in approach continues to receive deserved and detailed scrutiny adding to our efforts to increase awareness and transparency relating to the costs of tax expenditures currently operating.
The Deputy may be aware that the recently updated Tax Expenditure Evaluation Guidelines, which are produced by my department, outline the Government’s approach to (i) when tax expenditures are best used, noting that these narrow the tax base, and (ii) how they should be evaluated. Information from the guidelines and the outcomes of past evaluations to ascertain value for money and effectiveness relating to policy objectives, can be used to determine the most effective intervention approach.
These Guidelines explain that Government policy is based on the principle that tax expenditures should be used in limited circumstances where a) a demonstrable market failure exists and, b) the measure is more efficient than a direct expenditure intervention.
To achieve this, the Guidelines provide a recommended pre-determined set of questions to be addressed in every ex-ante tax expenditure evaluation, culminating to whether a tax expenditure is the best approach to address the relevant market failure.
It will also be of interest to the Deputy that, in line with the same Guidelines, my Department has published numerous evaluations and reviews of existing tax expenditures. For example, this year, reviews of the Foreign Earnings Deduction, the Reduced Rate of USC for Medical Card Holders, the Special Assignee Relief Programme, and the Rent Tax Credit were carried out and published on Budget Day.
My Department also publish an annual report on tax expenditures. Tax Expenditures in Ireland – 2025 Report was published in July of this year and provides analysis of tax expenditures. The annex of the report provides a master list of each measure identified by my Department of meeting the definition of a tax expenditure provided for in Irish law.
As per the report, tax expenditures amounted to €8 billion in 2024, equivalent to 2 per cent of national income or, alternatively, to 8 per cent of total tax revenue.
As noted by the report, financing the level of revenue forgone associated with tax expenditures would be the equivalent of financing the expenditure of the fifth largest line of (voted) public expenditure in 2024, only spending by the Departments of Social Protection, Health, Education, and Housing, Local Government and Heritage were higher.
It may be of interest to the Deputy that a recent initiative of my Department – the Tax Expenditure Passports, were also published for the first time over the summer. These passports provide an easily accessible one-page summary of each tax expenditure currently in operation.
The Deputy may be interested in a paper prepared by my Department as part of this year's Tax Strategy Group process, which outlines the developments and improvements made in the area of tax expenditure reporting in recent years. This paper is available on the Department's website.
My Department remain committed to improving the transparency and reporting of tax expenditures and their evaluation, and I am satisfied with the current analysis and reporting.
192. Deputy Brendan Smith asked the Tánaiste and Minister for Finance how he has engaged with the Central Bank to review credit union lending limits; and if he will make a statement on the matter. [73045/25]
View answerThe Central Bank of Ireland is mandated to set regulations for credit unions in a number of areas including lending limits. Regulations on lending limits are prescribed by the Central Bank of Ireland under the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016.
In December 2024, the Central Bank of Ireland published Consultation Paper 159 on Proposed Changes to the Credit Union Lending Regulations (CP159) which sought views on proposals for targeted changes to house lending and business lending credit union lending regulations. I would like to note that there are no limits on personal lending which continues to comprise the vast majority of credit union lending (approximately 86% as at end September 2025).
The amending regulations commenced on 30 September 2025. The amendments allow the sector to advance a maximum of €6.75 billion in house lending and €3.375 billion in business lending, based on sector total assets of €22.5 billion as of 30 September 2025.
The main changes to the lending limits can be summarised as follows:
• Increasing the lending limit for house lending to 30% of total assets;
• Increasing the lending limit for business lending to 15% of total assets;
• Decoupling of the concentration limits for house lending and business lending; and
• Removing the various tiers based on asset sizes.
The previous Ministers for Finance and the Ministers of State with responsibility for credit unions engaged on multiple occasions with the Central Bank of Ireland prior to, and during consultation on the lending limits. I welcome the amended regulations as it will allow credit unions to compete more effectively in the mortgage and business lending market.
The amendment of these regulations reflects the competence and capability of credit unions to grow their loan books in a prudent manner, and to futureproof their offering to support homeowners and businesses. Both I and the Minister of State with responsibility for credit unions strongly encourage credit unions to maximise the opportunities for lending growth that the lending limits now provide while maintaining appropriate credit and risk policies.
193. Deputy Colm Burke asked the Tánaiste and Minister for Finance if the reduction of VAT on residential construction from 13.5% to 9% now applies beyond the point of sale and to the point of construction as housing agencies may own the land, and many valuable housing projects would not have benefitted from the change otherwise; and if he will make a statement on the matter. [70855/25]
View answerAs the Deputy will be aware the temporary 9% rate of VAT on the supply of apartments came into effect on budget night. This measure was extended to the construction of apartments, and the supply and construction of apartment blocks, including student accommodation, from 26 November 2025. The 9% rate will apply until 31 December 2030.
194. Deputy Cormac Devlin asked the Tánaiste and Minister for Finance if he will report on CAT receipts to date in 2025; and if he will make a statement on the matter. [69700/25]
View answerCapital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances and is charged at a rate of 33%. For CAT purposes, the relationship between the person giving a gift or inheritance and the person who receives it determines the maximum amount, known as the “Group threshold”, below which CAT does not arise. The group thresholds were most recently increased in Budget 2025.
The Group A threshold increased to €400,000 from €335,000. This threshold applies where the beneficiary is a child of the disponer. This includes adopted children, stepchildren and some foster children. Parents may also fall within this threshold where they take an inheritance from a child.
The Group B threshold increased to €40,000 in Budget 2025 from €32,500. This threshold applies where the beneficiary is a brother, sister, niece, nephew, or lineal ancestor or lineal descendant of the disponer. Following recent changes made to Capital Acquisitions Tax legislation, the Group B threshold also applies to persons who receive gifts and inheritances from the wider family of their foster parents, for example, from their foster siblings, uncles, aunts and grandparents.
The Group C threshold increased to €20,000 in Budget 2025 from €16,250, with this threshold applying to all other cases.
I am advised by Revenue that provisional 2025 CAT receipts to the end of November are €1.075 billion.
I am further advised that statistics on CAT receipts are available on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/capital-taxes/cat/receipts-breakdown.aspx
Finally, any changes to CAT must be considered among various demands within the overall Budget package, as they have been in the past.
195. Deputy Peter 'Chap' Cleere asked the Tánaiste and Minister for Finance if he will report on his engagement with a fund (details supplied) and sector stakeholders; and if he will make a statement on the matter. [72574/25]
View answer198. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Finance the role credit unions play in supporting the delivery of social housing through the Credit Union Approved Housing Body Fund; and if he will make a statement on the matter. [72868/25]
View answerI propose to take Questions Nos. 195 and 198 together.
The credit union sector is an important supporter of housing delivery through the provision of mortgages directly to members, and investment in social housing via the Credit Union Approved Housing Body (AHB) Fund, known as the Credit Union AHB Fund.
Investment in the Credit Union AHB Fund is permitted under Central Bank regulations, introduced in March 2018. Under these regulations, over €1 billion can be invested by credit unions in the Credit Union AHB Fund.
The Credit Union AHB Fund is a fund that all credit unions can invest their members savings in. The Credit Union AHB Fund will then provide loan financing to AHBs in respect of completed social housing units.
The Minister of State has engaged with the Credit Union AHB Fund and credit union sector stakeholders to discuss the levels of investment in the fund.
I am informed that credit unions have invested €43 million in the fund as at 30 November 2025. The Credit Union AHB Fund has/will finance 175 homes in the following counties; Dublin, Cork, Wicklow and Galway.
It is important to note that both I and the Minister of State recognise that the decision to invest in the CU AHB Fund is a commercial matter for each independent credit union and their respective boards.
196. Deputy Paul Donnelly asked the Tánaiste and Minister for Finance his views on the difficulty of community, volunteer and sports organisations accessing bank accounts. [72889/25]
View answerAs the Deputy will be aware, neither I as Tánaiste and Minister for Finance nor the Central Bank of Ireland can intervene directly in the commercial decision of a Credit Institution to open or refuse to open an account for a community, volunteer, or sports organisation.
The Financial Services and Pension Ombudsman (FSPO) Ombudsman provides independent, fair, impartial, confidential and free services to resolve complaints from consumers, including small businesses and other organisations which you have raised. The FSPO was established in January 2018 by the Financial Services and Pension Ombudsman Act 2017, and the Ombudsman is independent in the performance of his or her functions.
For the purpose of FSPO, charities and clubs are considered to be consumers if they are a subject to a turnover limit of €3 million in the preceding financial year. Hence if a qualifying charity or club is unhappy with the decision of a Credit Institution not to open an account for them, they can submit a complaint to the FSPO.
The FSPO will look at the merits of an individual case, examine the conduct of the Credit Institution in question and consider whether they followed procedures in terms of established account opening protocols.
As outlined in the 2025 programme for Government, the Government is committed to positioning Credit Unions as community centric financial institutions integral to their local communities, small businesses, and farmers.
From 1 April 2025, credit unions have been able to provide current account services to members in their capacity as a charity, club or society for purposes relating to the activities of the charity, club, or society only, if they choose to do so and subject to certain conditions being met.
Furthermore, other actions are being taken by Government to support sports and community initiatives. In August of this year, it was announced by Minister for Culture, Communications and Sport Patrick O’Donovan that More than €4 million in Dormant Accounts Funding is to be invested in community sports and physical activity initiatives.
