Edward Timmins
Question:305. Deputy Edward Timmins asked the Tánaiste and Minister for Finance if he will consider the indexing of capital gains tax to take account of inflation; and if he will make a statement on the matter. [26898/26]
View answerTax Code
Questions (305)
Written answers
The Deputy will be aware that Ireland's Capital Gains Tax (CGT) rate is 33%. It is paid on the chargeable capital gain made when a person disposes of an asset. The chargeable gain is usually the difference between the price paid for the asset and the price at which it is disposed. CGT is payable by the person making the disposal.
Section 556 of the Taxes Consolidation Act 1997 (TCA 1997) provides a measure of relief for capital gains which are attributable purely to inflation, commonly known as ‘indexation relief’. The section provides that, in computing the chargeable gain on the disposal of an asset, the cost of acquisition of the asset (and any other expenditure allowable in computing the gain) are to be indexed, that is, they are to be adjusted by applying to it a multiplier based on the All Items Consumer Price Index as compiled by the Central Statistics Office.
Finance Act 2003 amended section 556 TCA 1997 such that indexation relief does not apply from the 2003 tax year onwards. However, indexation relief continues to be available in computing a chargeable gain arising on the disposal of an asset where the deductible expenditure on that asset was incurred prior to the tax year 2003, with the relevant indexation multiplier being determined by reference to the year in which the expenditure was incurred.
Where an asset was held on 6 April 1974, the market value of the asset as at that date is deemed to be the cost of acquisition and indexation is applied to this base “cost”. Indexation relief cannot operate to create an artificial loss or to augment an actual monetary loss. There is also a restriction on the amount of indexation available on the disposal of development land. Section 651 TCA 1997 restricts indexation relief to the current use value of the land at the date of acquisition, together with such proportion of the incidental costs of acquisition as is referable to that current use value.
Indexation relief was ended as a means of gradually broadening the tax base, and it has proved to be effective.
The Programme for Government commits to maintaining a broad tax base to guard against the need for counter-cyclical fiscal policy in the event of a downturn and to prepare for future budgetary challenges relating to population aging. CGT is part of a system to ensure taxation is not focused solely on income tax and that those who benefit from gains in the value of their assets are included within the tax net on an equitable basis.
As with all taxes, CGT is subject to ongoing review, which involves the consideration and assessment of the rate of CGT and the relevant reliefs and exemptions from CGT. CGT policy and legislation is reviewed as part of the annual Budget and Finance Bill process and as part of wider tax policy considerations.
Tax Code
Questions (306)
Matt Carthy
Question:306. Deputy Matt Carthy asked the Tánaiste and Minister for Finance the total amount by which he proposes to raise the price of petrol, diesel and home heating oil through increases to the carbon tax, in each year until 2030. [26716/26]
View answerWritten answers
The application of carbon tax to petrol and auto-diesel was introduced in December 2009, followed by the extension of carbon taxation to other liquid fuels, including home heating oil, on 1 May 2010.
Ireland’s carbon tax regime is a carbon pricing mechanism which directly links the taxation of fossil fuels to carbon dioxide emissions: a single price is set for a tonne of carbon dioxide, and this price is then applied to each fuel type according to the level of carbon dioxide emitted by that fuel when it is combusted. In this way, the carbon tax applying to each fuel type reflects the level of carbon dioxide emissions that it releases.
Legislation was introduced in Finance Act 2020 to provide for annual increases in carbon tax rates up to May 2030, at which point all carbon tax rates will be based on charging €100 per tonne of carbon dioxide emissions. Carbon tax rates on petrol and auto-diesel are legislated to increase at Budget time each October up to and including 2029, with rates on other liable fuels legislated to increase each May (i.e. after the winter heating season) up to and including 2030. This means that rates for the carbon component of MOT are set to increase a further four times for petrol and auto-diesel, and five times for heating fuels, over the remainder of the trajectory provided for in legislation.
In relation to the increases to heating kerosene and MGO scheduled for 1 May 2026, in light of the current fuel crisis I have postponed these increases until October 14 2026. In addition I have provided for further cuts to MOT rates on petrol, auto-diesel and MGO which came into effect on 15 April and will remain in place until 31 July this year.
For petrol, the MOT carbon component rate increases, inclusive of VAT, will total to 8.1 cents per litre over the remainder of the carbon tax trajectory. The annual increases will be 2.1 cents per litre for each of the next three years, and 1.8 cents per litre in 2029.
Inclusive of VAT the remaining four increases to the MOT carbon component rate on auto-diesel will total to 9.6 cents per litre. The annual increases will be 2.5 cents per litre for each of the next three years and 2.1 cents per litre in 2029.
Kerosene is the most commonly used oil for home heating. Inclusive of VAT the MOT carbon component rate increases on heating kerosene will total to 10.7 cents per litre over the remainder of the carbon tax trajectory. The annual amounts will be 2.2 cents per litre for each of the next four years and 1.9 cents per litre in 2030.
MGO is generally used in agriculture and certain other sectors but may also be used for heating. Inclusive of VAT the remaining five increases to the MOT carbon component rate on MGO will total to 11.2 cents per litre. The annual increases will be 2.3 cents per litre for each of the next four years and 2 cents per litre in 2030.
Departmental Schemes
Questions (307)
Peter Roche
Question:307. Deputy Peter Roche asked the Tánaiste and Minister for Finance if his Department has examined the eligibility criteria for the primary medical certificate, particularly in light of ongoing concerns that the current criteria exclude individuals with significant disabilities such as loss of sight or hearing; if his Department is engaging with the cross-departmental work underway to replace the disabled drivers and disabled passengers scheme with a modern, needs-based model; and if he will make a statement on the matter. [15768/26]
View answerWritten answers
The Deputy should note that my Department and I share concerns that the Disabled Drivers and Disabled Passengers Scheme or DDS is no longer fit-for-purpose and believe it should be replaced with a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual.
Under the aegis of the Department of the Taoiseach, the sub-group convened to progress the National Disability Inclusion Strategy proposals for a needs-based, grant-aided, modern vehicle adaptation supports to replace the DDS, generated a report that was submitted to the Department of the Taoiseach. In considering this report, it has been proposed that a new grant-based scheme be developed and led by the Department of Transport.
The Department of Transport is beginning the development of this new scheme. The existing DDS remains with the Department of Finance and will continue to be reviewed in the context of new scheme developments by the Department of Transport. The Tánaiste has been clear in his view that anyone who is currently eligible for the DDS should remain on the scheme for their lifetime.
As the Deputy will be aware, when this government took office, we committed to a step change in the delivery of supports and services for people with disability and their families.
Budget 2026 is the first step in delivering on this ambition, providing some €3.83 billion to specialist disability services next year, an unprecedented increase of €618 million, or almost 20%.
This funding will be vital in delivering the National Human Rights Strategy for Disabled People. The commitment to develop a new scheme by the Department of Transport, and in this context review the Disabled Drivers and Disabled Passengers Scheme, are strong commitments in this strategy.
Insurance Coverage
Questions (308)
Ryan O'Meara
Question:308. Deputy Ryan O'Meara asked the Tánaiste and Minister for Finance his views on whether it is appropriate that some individuals are losing their no claims bonus for motor insurance while being off the road on medical grounds; and if he will make a statement on the matter. [26619/26]
View answerWritten answers
At the outset, neither I, as Tánaiste and Minister for Finance, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive).
The administration of no claims bonuses is a matter for each individual insurance provider. The amount of discount offered, and the terms and conditions attached to same, will vary according to the consumer, policy, the nature of the risk, and the provider.
Regarding the general provision of insurance policies, it is understood that firms will use a combination of rating factors in making their individual decisions on whether to offer insurance cover and what terms to apply. Insurers also price in accordance with their specific claims experience and do not use the same combination of rating factors.
The Equal Status Acts 2000-2018 protects against discrimination on nine specific grounds, including age. However, the legislation also provides that people can be treated differently on any of the grounds (except gender) in relation to the provision of annuities, pensions, insurance policies or any other matter related to the assessment of risk, where such differences are based on the reasonable application of actuarial or statistical data or other relevant underwriting or commercial facts.
The revised Consumer Protection Code 2025, which came into effect on 24 March 2026, notes firms' obligation to act honestly, fairly, and professionally in accordance with the best interests of their clients. The Code states that, where a No Claims Bonus has been applied to a premium, the insurance policy issued to the consumer shall include: “the terms and conditions that apply to such discount, including any restrictions on the use or availability of the discount.”
It is therefore advisable for policyholders to take note of how long of a gap in cover their insurance company allows before a No Claims Bonus becomes invalid, this is typically 24 months but varies between insurers.
The Government is firmly committed to addressing transparency, affordability and availability of insurance through implementing the reforms set out in the Programme for Government and the Action Plan for Insurance Reform 2025-2029, to deliver tangible improvements in cost, choice, and access for all consumers.
Question No. 309 answered with Question No. 277.
Artificial Intelligence
Questions (310)
Malcolm Byrne
Question:310. Deputy Malcolm Byrne asked the Tánaiste and Minister for Finance if he will consider the use of agentic AI in revenue collection by his Department and the State generally; and if he will make a statement on the matter. [26495/26]
View answerWritten answers
I am advised by Revenue that it makes extensive use of technology to support and improve operational efficiency. As the Deputy is aware, AI models are analytical tools that produce outputs such as summaries, forecasts, or draft text; they do not act unless a person decides to use their output. Agentic AI describes systems that use such models to plan and execute steps toward a goal, such as gathering information, calling approved software tools, or initiating routine processes, subject to permissions and oversight. Agentic AI is typically defined as AI which can perceive its environment, understand intention, and take action to achieve its goals. Agentic AI is not the same as AI agents nor autonomous AI.
I am further advised that Revenue has deployed AI models to assist in more accurately directing taxpayer queries to the appropriate Revenue caseworker, assist staff in accessing all relevant information to allow them promptly and accurately respond to taxpayer queries, to extract key data from documents and image-based material used by staff to expedite the 1st pass validation of information and generate initial drafts of Tax and Duty Manuals which are then rigorously verified and refined by subject matter experts before publication. The commonality across these models is that they are designed to support human decision making with a clear focus on gaining efficiencies. They assist professional judgment rather than replace it.
Revenue IT systems follow strictly defined business rules underpinned by the appropriate legislative and operational requirements. These systems are designed, developed, tested, scaled, and deployed to match those criteria. Agentic AI systems will likely have a role to play in these business processes and if appropriate will be built into business workflows and tested accordingly.
Finally, I would note that Revenue continues to monitor international developments in AI capability, including agentic systems, and engages with EU and OECD working groups on responsible AI deployment in tax administration. Any future applications involving greater system autonomy will be assessed through Revenue's established AI governance framework, including Data Protection Impact Assessments and alignment with the Government's Guidelines for the Use of AI in the Public Service.
Credit Unions
Questions (311, 325)
Peter 'Chap' Cleere
Question:311. Deputy Peter 'Chap' Cleere asked the Tánaiste and Minister for Finance for an update on the development and publication of a strategy for the credit union sector; and if he will make a statement on the matter. [26613/26]
View answer
Shay Brennan
Question:325. Deputy Shay Brennan asked the Tánaiste and Minister for Finance for an update on the new strategy for the credit union sector; if there are any further developments with regard to a centralised treasury function for the sector; and if he will make a statement on the matter. [26560/26]
View answerWritten answers
I propose to take Questions Nos. 311 and 325 together.
The Programme for Government includes a commitment to draft a five-year strategy for the credit union sector. The Minister of State and I have just approved the project plan to determine the credit union sector's long-term strategy.
Two independent chairs have been appointed who will lead the governance structures underpinning the strategy’s delivery:
Dr Orlaigh Quinn• has been appointed Chair of the Project Governance Board. Dr Quinn is a former Secretary General of the Department of Enterprise, Tourism, and Employment.
Tom Allen• has been appointed Chair of the Strategy Committee. Mr Allen recently retired as CEO of North Midlands Credit Union.
The Project Governance Board will commence work immediately to agree the Terms of Reference, governance arrangements, and a workplan for engagement with credit unions and their members.
This phase represents the initial setup of the project. Participation from credit union CEOs, Directors, and suitably qualified staff will be required at later stages. Further details on the project scope, timelines and participation arrangements will be communicated in due course.
Once these elements are approved, the Strategy Committee will begin its work of strategy development.
This is a significant project that has required detailed project design and planning before the commencement and delivery within a 12-month timeframe. A resource and budget plan has been approved to support delivery of this strategy.
This will be a strategy developed and implemented by credit unions, reflecting the fact that credit unions are best placed to understand and respond to the needs of their members' and communities. I expect that this strategy will be owned by the credit union sector, be member and non-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 and non-members.
In relation to the centralised treasury function, provisions of the Credit Union (Amendment) Act 2023 provide for the establishment of a corporate credit union. The Credit Union Advisory Committee (CUAC) have considered the various structures and uses for the corporate credit union, including but not limited to a centralised treasury function and have recently published a detailed paper discussing this.
The provisions of the Credit Union (Amendment) Act 2023 relating to corporate credit unions will commence when the Central Bank of Ireland has developed the appropriate regulations. Consultations surrounding a regulatory framework are currently envisaged for the period 2027-2028, as outlined in the Central Bank of Ireland’s 2026 Regulatory and Supervisory Outlook. Please note this is an indicative timeline and may be subject to change in circumstances/events, or other supervisory work that requires reprioritisation.
The sector is considering the potential uses of the corporate credit union, including centralised treasury function, and a number of initiatives are already in progress. I am aware of a significant level of informal discussions that are taking place amongst credit union stakeholders to develop the potential uses of such an entity, so that appropriate regulations can be developed.
A corporate credit union could be a transformative tool for the sector that will support agreed strategic initiatives, but it will require significant collaboration within the sector. In addition to this, the Central Bank of Ireland will need to develop a comprehensive set of regulations on the operation of such an entity. I would encourage the sector to consider in detail the CUAC paper and to work together to deliver a corporate credit union that supports the needs and ambitions of the sector.
Insurance Industry
Questions (312)
Pearse Doherty
Question:312. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance the steps he is taking to address the situation where claims cost per policy for motor insurance are falling yet premiums continue to rise; and if he will make a statement on the matter. [28773/26]
View answerWritten answers
As the Deputy will be aware, neither I as Tánaiste and Minister for Finance, nor the Central Bank, have the power to compel insurers to provide particular types of insurance or to provide it at a particular price. This is reinforced by the European framework for insurance (Solvency II Directive).
Ireland’s reform programme has helped shield consumers from sharper premium increases experienced elsewhere. Between 2016 and 2024, motor insurance premiums increased by approximately 65 per cent in the UK and by around 20 per cent across the Eurozone. In contrast, Ireland experienced a proportional reduction of approximately 34 per cent over the same period.
A key focus of the reform agenda was addressing personal injury costs, which historically accounted for around 70% of overall motor insurance claims costs. Thanks to the introduction of the Personal Injuries Guidelines and related reforms, that figure has now moved to 46%. This significant shift has helped shield Ireland from the full impact of global inflationary pressures in the motor insurance sector.
However, the last few years has seen the emergence of inflationary pressures impacting damage claims. The National Claims Information Database (NCID) Private Motor Insurance Report 7, published in October 2025 highlighted that the expected cost of claims per policy increased by 3% in 2024. This increase is driven by damage claims, which are impacted by a combination of external factors, including increased vehicle technology, supply chain disruptions, and a tightening labour market; all of which have raised the cost of repairs.
The Action Plan for Insurance Reform 2025–2029 sets out a number of priority actions, focused on areas where the greatest impact on transparency, affordability and availability of insurance can be achieved. There are several priority actions, including actions that place a key focus on the Office to Promote Competition in the Insurance Market (OPCIM) and enhancing market competitiveness by proactively engaging with the insurance market to encourage new entrants into the Irish insurance market, which will further boost supply and enhance the availability and affordability of insurance. The new Motor Insurance Transparency Code, launched on 2 March 2026 will also enhance transparency, and provide greater understanding in how motor insurance premiums are communicated to consumers.
The Government remains firmly committed to addressing insurance costs through the implementation of the reforms set out in the Programme for Government and the Action Plan for Insurance Reform. These measures aim to support the development of a fairer and more competitive insurance market, delivering tangible improvements in cost, choice, and access for all consumers.
Question No. 313 answered with Question No. 283.
Question No. 314 answered with Question No. 258.
Financial Services
Questions (315)
Aindrias Moynihan
Question:315. Deputy Aindrias Moynihan asked the Tánaiste and Minister for Finance the number of complaints received by the Financial Services Ombudsman each year since 2015; the number of these that remain open in April 2026, in tabular form; and if he will make a statement on the matter. [26890/26]
View answerWritten answers
The Financial Services and Pensions Ombudsman (FSPO) provides an independent, fair, impartial, confidential and free service to consumers to help resolve complaints against financial service providers and pension providers.
The FSPO has advised that for all complaints that closed in 2025, including tracker mortgage complaints, the average time from receipt of complaint to closure, was 8.3 months.
For non-tracker mortgage complaints that closed in 2025, the average time from receipt to closure, was 7 months.
88% of complaints that were closed in 2025 were closed within 12 months.
Certain more complex complaints, including those requiring a formal adjudication take longer to resolve. This reflects the fact that adjudications by the Ombudsman are legally binding.
The table below sets out the FSPO data requested by the Deputy.
|
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
2025 |
|
Received |
*Not available |
*Not available |
*Not available |
5,692 |
5,275 |
5,395 |
4,658 |
4,781 |
6,182 |
6,185 |
7,004 |
|
Active |
28 |
24 |
41 |
104 |
203 |
307 |
414 |
515 |
676 |
897 |
2,152 |
* The Financial Services and Pensions Ombudsman was established in 2018. Active complaints were transferred from predecessor organisations (the Financial Services Ombudsman and the Pensions Ombudsman). Data on the numbers of complaints received by these predecessor organisations by year is not available.
Question No. 316 answered with Question No. 255.
Question No. 317 answered with Question No. 274.
Questions Nos. 318 and 319 answered with Question No. 278.
Question No. 320 answered with Question No. 242.
Fuel Prices
Questions (321)
Albert Dolan
Question:321. Deputy Albert Dolan asked the Tánaiste and Minister for Finance the assessment he has made of the impact of the current global oil market volatility on petrol and diesel prices in Ireland over the coming weeks and months; if he plans any further measures to alleviate pressures on businesses, farmers and consumers; and if he will make a statement on the matter. [26472/26]
View answerWritten answers
The situation in the Middle East and the future path of commodity prices clearly remains highly uncertain.
Ireland, as a net energy importer, will, of course, be negatively impacted by the significant increase in energy prices that we have seen in recent weeks. These increases have already fed into higher fuel prices for households, farmers and businesses.
My Department's spring economic forecasts as set out in the Annual Progress Report (APR) include a reference forecast for headline inflation where headline inflation averages 3.3 per cent.
As well as the reference projection, adverse two alternative scenarios where there is a more pronounced and persistent disruption to energy supplies are detailed in the APR. In an 'adverse' scenario inflation averages 3.7 per cent this year, while in a 'severe' scenario where there is pronounced and prolonged increase in energy prices inflation averages 4.6 per cent.
I am acutely conscious of the real pressures that higher energy prices have placed on households and businesses - in particular on hauliers, farmers, and transport operators.
In response, Government has announced a package of measures that will help mitigate the financial costs arising from the increases in fuel and energy costs. These measures, when taken with those already introduced in March, include a reduction in excise tax on petrol by a total 27 cent per litre, diesel by a total of 32 cent per litre and marked gas oil by a total of 7.4 cent. As well as reductions in excise, Government will defer the planned increase in carbon tax, scheduled for May 1st, until the Budget. This will impact green diesel and non-propellant fuels such as kerosene heating oil, natural gas and solid fuels. The Fuel Allowance scheme was also extended by an additional month, which will provide support to some 470,000 households.
To support the haulage and coach sector, the Government will establish a new Road Transporters Support Scheme (RTSS). This will provide direct payments to the haulage and coach operators. The Diesel Rebate Scheme was also enhanced to provide support to the haulage sector.
Government has also announced a comprehensive Fuel Subsidy Support Scheme to assist farmers, agricultural contractors and fishers facing unprecedented increases in fuel costs. This will provide with funding directly linked to fuel usage last year to ensure those most impacted by the fuel price increase receive the greatest assistance.
These temporary supports strike an appropriate balance by supporting households and businesses affected by rising energy costs, without adding unduly to inflationary pressures.
Government will continue to monitor the situation as it develops over the coming weeks and months.
State Assets
Questions (322)
Cian O'Callaghan
Question:322. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance if he will ensure the Irish Strategic Investment Fund is fully divested from all companies, directly and indirectly, involved in illegally occupied Palestinian territories; and if he will make a statement on the matter. [26780/26]
View answerWritten answers
I take it that the Deputy is referring to the UN Human Rights Council database (the UN Database) identifying businesses involved in specific activities in the Occupied Palestinian Territories which was first issued in 2020, updated in June 2023 and most recently updated in September 2025 as mandated by the UN Human Rights Council.
The Government has made it clear that it opposes illegal Israeli settlements, which are contrary to international law and damaging to the pursuit of peace in the Middle East. Ireland has not been found wanting in its support of the Palestinian people and has taken practical steps at national, EU and international levels. We have been a clear and leading voice on this. Ireland has provided significant financial support to the people in Palestine since January 2023.
It is important to say from the outset that ISIF, has complete independence in implementing its investment strategy under the NTMA Acts through an investment committee that reports to the NTMA's board.
In 2024 ISIF took an investment decision to divest from six companies, all of which remain on the updated UN Database, with a total value at the time of the divestment decision of approximately €2.95m. The six companies were Bank Hapoalim BM; Bank Leumi-le Israel BM; Israel Discount Bank Ltd; Mizrahi Tefahot Bank Ltd; First International Bank Ltd and Rami Levi Chain Stores Ltd.
The NTMA also divested from directly held Sovereign bond holdings within the Global Portfolio across Egypt, Israel, and Jordan in July 2025.
It is important to state the companies concerned are ones that operate all over the world. ISIF's investment in them represents a very small proportion of its overall investments.
It is also true to say that divestment from these companies does not mean that they would stop maintaining their presence in the OPT.
As well as the divestments I have outlined already, ISIF has, to date, also completed several divestment programmes and excluded investments from the Fund. Exclusion is used on a limited basis, reflecting exclusions mandated by legislation including the Fossil Fuel Divestment Act 2018 and the Cluster Munitions and Anti-Personnel Mines Act 2008 and, inter alia, exclusions on sustainable investment grounds including Tobacco and Nuclear Weapons.
Legislation underpinning ISIF, reflects a commitment to be a responsible investor as steward of public assets by protecting and enhancing both the long-term value of the ISIF and the reputation of NTMA in how it delivers its mandate, as manager and controller of the ISIF.
Banking Sector
Questions (323)
Cian O'Callaghan
Question:323. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance the steps being taken to address the situation where banks are maintaining high mortgage interest rates in order to maintain high profits; and if he will make a statement on the matter. [26779/26]
View answerWritten answers
The European Central Bank is responsible for monetary policy in the euro area. Having declined in stages since summer 2024, its main lending rate is now 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 3.51% in February. While this is above the euro area average of 3.41%, it is 28 basis points lower than the same time last year.
Domestic banks currently maintain healthy balance sheets which are important to ensure they are well-positioned in case of adverse shocks. While the profitability of the domestic banking sector is strong, it is noted that it has moderated from recent highs.
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 will assist borrowers who have seen large interest rate increases, to offset the impact of the rising cost of living.
The Central Bank of Ireland, 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.
Housing Schemes
Questions (324)
John Connolly
Question:324. Deputy John Connolly asked the Tánaiste and Minister for Finance if he plans to review the thresholds for the help-to-buy scheme; and if he will make a statement on the matter. [26556/26]
View answerWritten answers
The Help to Buy (HTB) incentive, provided for in section 477C of the Taxes Consolidation Act 1997 (TCA), is a tax-based scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. It also aims to encourage additional supply of new houses by supporting demand.
HTB provides a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.
The level of support available to first time buyers under the HTB scheme, is whichever is the lesser of:
• €30,000; or
• 10 per cent of the purchase price of the new property; or
• the amount of Income Tax and DIRT paid in the four years before application for the relief.
For a property to qualify for the HTB scheme, it must be new or converted for use as a dwelling, having not previously been used as a dwelling. Additionally, the purchase value/approved valuation of the property must not exceed €500,000.
Based on the latest available data (31 March 2026), the scheme has supported over 64,000 individuals or couples to buy or build their own home. The average property value of approved HTB claims was €363,600, to date
The Programme for Government commits to "retain and revise the Help to Buy scheme.". Any revisions to the HTB scheme, including revisions to the property price ceiling, would have to take into account the effective operation of the scheme and the impact any proposed changes would have on the broader housing market, but these matters will be kept under review.
Furthermore, and as the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, having regard to the sound management of the public finances and the impact any proposed changes would have on the wider housing market.
Question No. 325 answered with Question No. 311.
Tax Code
Questions (326)
Naoise Ó Muirí
Question:326. Deputy Naoise Ó Muirí asked the Tánaiste and Minister for Finance the progress being made to index credits and bands to prevent an increase in the real burden of income tax; the estimated amount this will cost; and if he will make a statement on the matter. [26897/26]
View answerWritten answers
The ‘Programme for Government 2025: Securing Ireland’s Future’, contains specific undertakings with regard to personal taxation, it commits to “implementing progressive changes in taxation if the economy remains strong, including indexing credits and bands to prevent an increase in the real burden of Income Tax while in the event of an economic downturn and unexpected deterioration in the public finances we would postpone changes to Income Tax credits or bands, as we did in Budget 2021”.
As the Deputy will be aware, to ease the burden facing average and middle-income earners, over successive Budgets the previous Government substantially increased the entry point to the higher rate of income tax for all earners by €8,700 or c. 25 per cent. The main tax credits have also been increased by €350, or c. 21 per cent. In line with the Government policy of ensuring full-time workers on the minimum wage remain outside the charge to the top rates of USC the ceiling of the 2 per cent USC rate band was increased by €6,898, or 34 per cent, from 2020 to 2025. Budgets 2024 and 2025 also cumulatively reduced the 4.5 per cent rate of USC to 3 per cent.
Broadly, the income tax measures implemented over the period of the last Government are expected to be in line with wage growth.
Budget 2026 was designed to boost our economic resilience and protect jobs in a deeply uncertain international economic environment. However, it also provided a range of supports to individuals, families and businesses. In particular, the Rent Tax Credit, introduced in Budget 2023, has proven to be a very meaningful support for renters. The credit was extended for a further three years to the end of 2028. The ceiling of the second USC rate band was increased by €1,318, from €27,382 to €28,700. This has ensured that a full-time worker on the minimum wage who benefits from the increase in the hourly minimum wage rate from €13.50 to €14.15 remains outside the highest rates of USC, while it also has provided a modest benefit to all workers whose income is above that amount. The 9 per cent VAT on gas and electricity bills was extended until the 31 December 2030, recognising that energy prices remain high and to help alleviate energy cost pressures for households.
All of these measures will have a positive impact.
Finally, as the Deputy will appreciate, decisions regarding tax measures are normally made in the context of the annual Budget and Finance Bill process. Such decisions must have regard to the sound management of the public finances and the competing priorities. However, Budget 2026 was the first of five Budgets to be delivered by this Government, and the Government remains committed and will stand by the Programme for Government commitment to make progressive changes to personal income tax, if the economy remains strong.
Tax Yield
Questions (327)
John Lahart
Question:327. Deputy John Lahart asked the Tánaiste and Minister for Finance the revenue raised in 2025 under each category in capital acquisitions tax; and if he will make a statement on the matter. [26557/26]
View answerWritten answers
Capital 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. It is important to say that the group thresholds were most recently increased in Budget 2025 as follows:
The Group A threshold, which in general applies where the beneficiary is a child of the disponer, is set at €400,000.
The Group B threshold applies where the beneficiary is a brother, sister, niece, nephew, or lineal ancestor or lineal descendant of the disponer and is set at €40,000.
The Group C threshold applies in all other cases and is set at €20,000.
I am informed by Revenue that CAT receipts by category are not yet available for 2025 but are planned to be published by next month. As of January 2026, provisional CAT receipts as a whole for 2025 amounted to approximately €1,121 million.
Question No. 328 answered with Question No. 276.
Question No. 329 answered with Question No. 278.
Question No. 330 answered with Question No. 258.
Fuel Prices
Questions (331)
Colm Burke
Question:331. Deputy Colm Burke asked the Tánaiste and Minister for Finance the coordination that has taken place between EU countries on rising fuel prices to date; whether further coordination is planned at an EU level; and if he will make a statement on the matter. [26798/26]
View answerWritten answers
The Irish Government is coordinating closely with the EU, as well as with colleagues across the national system and across the world, in the wake of the ongoing energy crisis.
At the Eurogroup meetings in March I met with fellow EU Finance Ministers to discuss the energy price shock, and the measures Member States were implementing in response. Member States are in firm agreement on the need to stay coordinated in our policy action and to continue to jointly monitor the situation as it develops. The Minister for Climate, Energy and the Environment is also engaging with his EU colleagues in this regard.
At the European Council in March, An Taoiseach joined EU leaders in calling for the European Commission to develop a toolbox of targeted and temporary measures which Member States can draw upon. The Government is open to EU proposals which will address the impact of the energy crisis on electricity markets in a coherent and proportionate way, having regard to the lessons learned from the 2022-2023 energy crises.
At the national level, we have introduced temporary and targeted measures aimed at mitigating the impact of the rise in energy prices, in line with the approach of many other Member States. This action will help alleviate the strain of increased costs for Irish households and businesses.
We are approaching this challenge from a position of relative economic strength, having conserved the necessary fiscal space to respond as needed to external shocks. The measures we have taken will allow us to support those most exposed, whilst maintaining the capacity for further interventions if needed, in the context of a volatile and evolving international situation.
Tax Code
Questions (332)
Pearse Doherty
Question:332. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance the options in relation to VAT on petrol and diesel; and if he will make a statement on the matter. [28774/26]
View answerWritten answers
The EU VAT Directive, which Irish VAT law must comply, generally holds that all goods and services are liable for VAT at the standard rate which must be set at a minimum of 15%. If a good or service is listed under Annex III, a reduced rate or exemption from VAT may be applied.
In addition, Member States may apply up to two reduced rates of at least 5% for goods that are listed under Annex III of the Directive. Ireland currently applies a reduced rate of 13.5% and a second reduced rate of 9%.
As fuel is not included in Annex III it is not possible under the VAT Directive to apply a reduced or zero rate to it.
Member States found to be in breach of the VAT Directive are open to investigation and infringement proceedings from the European Commission.