Written Answers Nos. 463-482
463. Deputy William Aird asked the Tánaiste and Minister for Finance the measures being taken to reduce the Exchequer's exposure to volatility in corporation tax receipts and to strengthen the resilience of the State's tax base over the medium to long term; and if he will make a statement on the matter. [39687/26]
View answerThe past decade has seen considerable growth in CT receipts. From just over €6.8 billion in 2015, they reached over €32.9 billion in 2025. Last year represented the fourteenth consecutive year of annual growth from the low point of €3.5 billion in 2011.
This strong performance of corporation tax in recent years has highlighted the risk of relying on volatile and unpredictable receipts to fund permanent increases in expenditure. This Government is actively working to mitigate our exposure to corporation tax volatility. By the end of this year, there will be some €24 billion invested in the Future Ireland Fund (FIF) and the Infrastructure, Climate and Nature Fund (ICNF). This means we are setting aside a portion of tax receipts now to prepare for the future and enhance our economic resilience, instead of funding day-to-day spending.
Government has also built-up substantial cash reserves over the last four years by recording consecutive surpluses whilst also lowering our debt burden, to further protect us against any sharp decline in corporation tax receipts.
Furthermore, Government recently published its medium-term budgetary plan which sets out a path for net public spending. The plan will enable sustainable increases in expenditure for public services, boost economic resilience by committing to large-scale infrastructure investment and save for the future by maintaining budgetary surpluses, pursuing a balanced and appropriate approach to overall budgetary policy and setting aside revenue in the FIF and ICNF. This is the best way to guard against a downturn in corporate tax revenues.
464. Deputy Colm Burke asked the Tánaiste and Minister for Finance the estimated yield to the Exchequer from an increase of 50 cent and €1 in the excise duty on 20 cigarettes, and a pro rata increase in excise on other tobacco products; and if he will make a statement on the matter. [39946/26]
View answerI am advised by Revenue that the estimated yields for these proposals are published on page 24 in the Revenue Ready Reckoner. The Ready Reckoner enables calculation of the cost or yield arising from a range of potential changes to tax charges and is available on the Revenue website at:
www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx.
465. Deputy Colm Burke asked the Tánaiste and Minister for Finance the estimated yield to the Exchequer from an increase of 50 cent in the E-liquid products tax, EPT; the current estimated annual yield; and if he will make a statement on the matter. [39947/26]
View answerI am advised by Revenue that E-liquid Products Tax (EPT), which was introduced on 1 November 2025, has yielded provisional receipts of €12.6m for the period January 2026 to April 2026. The current rate of EPT is €500 per litre of e-liquid product. An increase of €50c per ml, or €500 per litre, over the same receipts period would yield an estimated additional €12.6m.
I am further advised by Revenue that sufficient data is not available upon which to base a full year estimate of additional yield arising from the deputy’s proposal.
466. Deputy Paul Lawless asked the Tánaiste and Minister for Finance the amount the Government is projected to take in via the various taxes on fuel and energy in 2026; and the corresponding figure for each of the past ten years. [39399/26]
View answerI am advised by Revenue that total receipts from Mineral Oil Tax (MOT), Solid Fuel Carbon Tax (SFCT), Natural Gas Carbon Tax (NGCT) and Electricity Tax, together with an estimate of VAT receipts from fuel and energy products, for the year to April 2026 and in each of the past ten years is shown in the below table.
|
Year |
MOT €m |
SFCT €m |
NGCT €m |
Electricity Tax €m |
Estimated VAT €m |
Total €m |
|
2026 |
1,031.4 |
10.3 |
75.5 |
3.6 |
386 * |
1,507 |
|
2025 |
3,108.7 |
18.9 |
137.6 |
5.2 |
1,434 |
4,704 |
|
2024 |
2,889.1 |
21.5 |
125.2 |
5.4 |
1,474 |
4,515 |
|
2023 |
2,375.2 |
19.2 |
107.2 |
4.2 |
1,510 |
4,016 |
|
2022 |
2,220.9 |
25.9 |
94.5 |
3.5 |
1,566 |
3,911 |
|
2021 |
2,467.2 |
27.9 |
83.3 |
5.2 |
1,209 |
3,793 |
|
2020 |
2,219.8 |
23.8 |
65.0 |
2.1 |
1,038 |
3,349 |
|
2019 |
2,524.3 |
20.1 |
50.4 |
2.3 |
1,162 |
3,759 |
|
2018 |
2,519.1 |
25.3 |
50.0 |
2.5 |
1,193 |
3,790 |
|
2017 |
2,408.4 |
19.1 |
54.1 |
3.6 |
1,131 |
3,616 |
|
2016 |
2,518.5 |
24.4 |
55.8 |
4.6 |
1,113 |
3,716 |
* VAT is for the period January to March 2026
In relation to VAT, I am further advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible to provide the VAT yield on all fuel and energy related products and services using taxpayer information alone. However, using Revenue and third-party data sources, a tentative estimate of the VAT generated on fuel and energy products can be provided.
I am further advised by Revenue that a breakdown of excise receipts for 2024 and prior years is available on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/receipts-volume-and-price/excise-receipts-commodity.aspx.
My Department does not publish disaggregated projections for taxes on fuel and energy in the manner requested by the Deputy. Annual forecasts are produced for the Exchequer tax heads: specifically, taxes on fuel and energy are reflected in excise duties and VAT receipts.
My Department’s projections for 2026 for excise duties and VAT, published in the Annual Progress Report, are €6,230 million and €23,645 million respectively. These are headline figures, reflecting excise and VAT charged on all in-scope goods and services, not just fuel or energy.
It should also be noted that Revenue data is presented on a ‘net receipts’ basis, which can differ from Exchequer receipts.
As the Deputy will be aware, schemes such as the VAT deduction scheme, the double income tax relief scheme and the Diesel Rebate Scheme mean that a significant portion of revenue raised from taxation of fuels is repaid to economic operators who are availing of these schemes.
467. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance the extent to which geopolitical instability is contributing to increased import costs for energy, food, and key goods in Ireland; the estimated impact on the cost of living for households; and the measures being taken at EU and national level to mitigate these pressures; and if he will make a statement on the matter. [38394/26]
View answerGeopolitical instability, most notably the conflict in the Middle East and the associated disruption to commodity flows, has contributed to higher prices for a range of goods, in particular petroleum fuels. These fuels are either imported or rely on imported crude oil.
According to the latest available data from the CSO, annual inflation for fuels stood at 29 per cent in April and contributed around 1¼ percentage points to headline inflation. Annual inflation in Ireland, measured on a harmonised basis stood at 3.6 per cent in April.
Higher prices for energy and other commodities, as well disruption to supply chains triggered by the conflict in the Middle East are expected to feed into higher import costs for other key goods, such as food albeit with a lag.
Government is very aware of the real pressure that these price increases have placed on households and businesses. That is why at a national level, over the last number of weeks Government has intervened to help ease some of the burden of rising energy prices, with two packages of measures worth over €750 million.
The first package of measures, introduced at the end of March, reduced excise on fuel, cut the NORA levy and enhanced the diesel rebate scheme. To further support households, Government extended the fuel allowance season by an additional four weeks. This means that 470,000 households received additional financial support of €38 per week, totalling €152.
The second package of measures, introduced in April, included a further cut in the excise duty on fuel, which brings the total reduction, inclusive of the cut to the NORA levy, to 32 cent per litre for diesel and 27 cent per litre for petrol. Government is further reducing excise on green diesel, bringing the total reduction to 7.4 cent. Government is also delaying the carbon tax increase scheduled for May and has introduced support schemes targeted at the agricultural and transport sectors.
At an EU level, a number of actions have been taken to respond to the current energy price pressures.
The AccelerateEU package, published by the European Commission, is a short-term crisis response triggered by the recent rise in energy prices. This package provides a coordinated toolbox of temporary measures, including targeted consumer and industry supports supported by relaxed state aid rules, alongside enhanced market coordination. It also reinforces structural reforms such as electrification, renewable deployment, grid investment and energy tax reform, reflecting a dual objective of managing current shocks while reducing future exposure to fossil fuel price volatility.
468. Deputy Michael Cahill asked the Tánaiste and Minister for Finance to make carers payments tax exempt; and if he will make a statement on the matter. [31440/26]
View answerCarers play a fundamental supporting role in society, and the Government are committed to supporting individuals and families with caring responsibilities. This is acknowledged by the broad range of commitments in the Programme for Government to improving supports for carers.
It is important to state that there has been no change in the Income Tax treatment of Carer’s Allowance and Carer’s Benefit. Carer’s Allowance and Carer’s Benefit are subject to Income Tax but are exempt from Universal Social Charge and Pay Related Social Insurance.
As the Deputy may be aware, there is a long-standing data sharing arrangement between both Revenue and the Department of Social Protection (DSP) which facilitates the operation of both the tax and welfare systems. DSP had been reporting information on a significant number of taxable DSP payments to Revenue, including Jobseekers Benefit, Maternity Benefit, One-Parent Family Payment, State Pension (Contributory or Non-Contributory) and Bereaved Partners Contributory Pension but information for Carer’s Allowance and Carer’s Benefit has not previously been shared.
As data relating to Carer’s Allowance and Carer’s Benefit had not been shared between DSP and Revenue previously, it was the recipient’s responsibility to declare this income to Revenue. When a carer was granted the Allowance or Benefit, the DSP notice advised the carer that the Allowance or Benefit was taxable income. It was agreed by DSP and Revenue that from 1 January 2026, information on Carer's Allowance/Benefit payments will be included in the Taxable Payments Report shared directly with Revenue.
Where a person in receipt of payments from DSP also has an additional source of employment or occupational pension income, the mechanism used to collect tax due is by reducing the person’s annual tax credits and rate band, by the annual amount of their DSP income. This ensures that the DSP payment is paid gross to the recipient, while the salary or pension, as paid by their employer, will have any tax due on both the DSP income and the employment deducted from it. This aligns the taxation of Carer’s income with other taxable DSP payments and significantly reduces the risk of an end-of-year liability.
It should be noted that not all carers who are in receipt of Carer’s income will have a tax liability, particularly if their income level is below the taxation threshold, or they have sufficient tax credits to reduce their liability to nil. A person’s tax liability will depend on their individual personal circumstances, income levels and personal credits available to them and their family.
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, and having regard to available resources and the sound management of the public finances.
469. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Finance if he will commit to changes in inheritance tax; and if he will make a statement on the matter. [39769/26]
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 as follows:
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 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 from €16,250, with this threshold applying in all other cases.
Along with tax free group thresholds, various reliefs and exemptions are available in relation to CAT, including agricultural and business relief. There is also the small gift exemption, favourite niece or nephew relief, and the dwelling house exemption.
In general, the availability of specific reliefs in respect of a particular tax head often means that the tax must be calibrated at a particular level in order to generate an appropriate yield. It is important from a tax policy perspective to maintain stability and certainty, and to ensure that the CAT thresholds are appropriately set in the context of the range of reliefs available.
There is a significant associated cost with further changes to the group thresholds, whether it involves increasing these thresholds or whether it involves bringing those who are childless within the scope of the Group A threshold. However, that said I recognise the burden of capital taxation.
In conclusion, any further changes to the CAT rate and thresholds and who falls within these thresholds must be considered among various other demands within the overall Budget package, as they have been in the past. In that regard, you should note that the CAT group thresholds are kept under review annually by my officials throughout the Finance Bill cycle.
470. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Finance if he will re-evaluate the tax take on diesel, petrol, kerosene and mark gas oil and reduce it; and if he will make a statement on the matter. [39763/26]
View answerThe total estimated costs of the support packages the Government has introduced is over €750 million. While no government can fully insulate its people from the effects of the energy crises, Ireland’s support package is one of the largest in Europe on a per capita basis.
The support package, including total excise rate and NORA reductions, has reduced the cost of diesel and petrol by 32 and 27 cent per litre, respectively. The packages provide targeted support measures to sectors that have been very badly affected by rising fuel prices – in particular our farmers, agriculture contractors, hauliers and coach operators. Furthermore, the Government lengthened the fuel allowance season by a further four weeks, increasing the benefits to around 470,000 households by some €152 per household and deferred the 1 May carbon tax increase until 14 October.
With regard to taxation of fuels it is important to highlight that we must operate within the confines of EU law. In this regard, both the EU Energy Tax Directive and the EU VAT Directive are relevant.
Government will continue to actively monitor global energy market activity, the impact at national level in terms of consumer prices, and respond accordingly.
471. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Finance if he will introduce a tax credit to support smaller rural pubs; and if he will make a statement on the matter. [39660/26]
View answerOn the subject of the Deputy’s question, I am aware that the Vintners Federation of Ireland have proposed a tax credit for pubs, linked to the number of draught product kegs purchased by a business, subject to a per premises cap.
Proposals for new tax expenditures are examined by reference to my Department’s Tax Expenditure Guidelines, which outline the Government’s approach to when tax expenditures are best used, noting that these narrow the tax base, and how they should be evaluated.
In the case of a proposal for a targeted tax incentive, such as that put forward by the VFI, consideration must also be given to European State aid requirements. Measures that confer a selective advantage on a specific sector have the potential to constitute a State aid and therefore could not be introduced unless compliant with an existing framework or undertaking a full notification process.
Additionally, any tax credit given to rural pubs, or indeed to all pubs, and which is based on the supplies of alcohol products to those pubs, would potentially be contrary to the Alcohol Structures Directive if its effect, in practice, is to give relief from the rate of alcohol excise paid on alcohol products.
The Alcohol Structures Directive establishes a harmonised framework for the taxation of alcohol across the EU. It does not permit the taxation of alcohol to be differentiated based on the point of consumption. Accordingly, it is not legally permissible for Ireland to apply reduced excise duty rates to alcohol sold in pubs, restaurants, or other licensed premises, as this would be contrary to the requirements of the Directive.
It is worth noting that there has been no general increase in excise duty rates for alcohol since 2014. While the retail price of beer has risen over that period, the excise duty has remained unchanged and, therefore, the total tax as a percentage of the retail price of each pint is now lower than it was more than a decade ago.
The Government is conscious of the challenges facing all businesses in the current economic climate, and the Cost the Business Advisory Forum is working to look at the structural issues that are driving up costs and the steps that could be taken to mitigate them. A range of direct expenditure supports are also available to businesses, and details can be found online on the National Enterprise Hub at www.neh.gov.ie.
Notwithstanding the above, the matters raised in the proposal will continue to inform ongoing policy considerations in the context of the budgetary process.
473. Deputy John Connolly asked the Tánaiste and Minister for Finance whether his Department has undertaken, or intends to undertake, a review of the capital acquisitions tax lifetime tax free thresholds, with particular reference to the group B threshold applicable to nieces and nephews (details supplied); and if he will consider any adjustments to ensure that the thresholds remain appropriate in the current context. [39995/26]
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. 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, increased to €400,000 from €335,000.
The Group B threshold increased to €40,000 from €32,500. This threshold applies where the beneficiary is a brother, sister, niece, nephew, or lineal ancestor or lineal descendant of the disponer.
The Group C threshold increased to €20,000 from €16,250, with this threshold applying in all other cases.
These increases amounted to an increase of approximately 19.4% on Group A, while Group B and C Thresholds increased by 23%.
My officials examined CAT as part of last year's annual Tax Strategy Group exercise. The resultant papers outlined the tax policy considerations for the Government and the options available to it in forming last year's Budget. They were published in advance of the Budget and are the best means of considering issues such as inheritance tax in an analytical and transparent way. The Tax Strategy Group is not a decision-making body and the papers produced by my Department are simply a list of options and issues to be considered in the Budgetary process. The Tax Strategy Group paper relating to CAT also examined a number of cost modelling exercises, including proposals to amend the Group B threshold parameters which I am aware a number of Deputies have raised in the past year. My officials intend to include a further update of this matter in the Tax Strategy Group papers this year.
As demonstrated by that exercise, there is a significant associated cost with further changes to the group thresholds.
I have met with the 'End Discrimination in Inheritance Tax' group who are an advocacy group in relation to this matter, and I have committed to further engagement. I do understand the concerns they have raised, along with the burden of capital taxation.
Finally, the Deputy should note that any further changes to the thresholds and who falls within these thresholds must be considered among various other demands within the overall Budget package, as they have been in the past. In that regard, you should note that the CAT group thresholds are kept under review annually by my officials throughout the Finance Bill cycle.
474. Deputy Albert Dolan asked the Tánaiste and Minister for Finance if consideration will be given to reforming the taxsaver commuter ticket scheme to allow employees whose employers do not participate in the scheme to claim equivalent tax relief directly through Revenue; whether this could be facilitated through annual tax returns in a similar manner to medical expense claims; and if he will make a statement on the matter. [40086/26]
View answerAs the Deputy will be aware, section 118(5A) of the Taxes Consolidation Act 1997 (TCA) provides for the TaxSaver scheme. The scheme provides an exemption from benefit-in-kind (BIK) where an employer purchases a travel pass for one of their employees or directors, subject to certain conditionality.
Under section 118B TCA, an employer and employee may also enter into a Revenue-approved salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary in exchange for the benefit.
Where a travel pass is purchased, under the scheme, or through a salary sacrifice arrangement, certain conditions must be met, for example:
• the cost incurred must relate to a monthly or annual bus, railway or ferry travel pass;
• the travel pass must be issued by or on behalf of one or more approved transport providers; and
• the approved transport provider must be contracted or licensed to provide the transport services covered by the travel pass.
As the Deputy correctly refers, where an employer chooses not to take part in the scheme, relief is not available to employees (or directors). If an employer participates in the schemes, employer’s PRSI is not payable on the cost of the relevant benefit(s) according to the deduction from their employees' salary payments. This saving to employers is a key incentive for employers to make the scheme available to their employees.
As with all tax policy measures, the TaxSaver scheme is kept under review by Department of Finance officials. In considering proposals in respect of tax expenditures, the Government must be mindful of the public finances and the many demands on the Exchequer. At present, I am satisfied that the scheme operates as intended.
As the Deputy will appreciate, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
475. Deputy Albert Dolan asked the Tánaiste and Minister for Finance the total amount of taxation revenue collected from the mineral exploration and mining sector in each of the past ten years, broken down by corporation tax, royalties, licence fees, employer taxes and any other relevant category; and if he will make a statement on the matter. [40091/26]
View answerI am advised by Revenue that the standardised NACE classification of economic activity does not currently capture mineral exploration specifically. As such, it is not possible to identify companies involved in mineral exploration from the statistical data available to Revenue.
However, the Deputy may wish to note that a breakdown of net receipts by broad economic sector, including Mining and Utilities, is available on the Revenue website at:
www.revenue.ie/en/corporate/information-about-revenue/statistics/receipts/sector/index.aspx.
2025 data will be added to this information in the coming weeks.
476. Deputy Cathal Crowe asked the Tánaiste and Minister for Finance the number of companies who availed of KEEP each year since its introduction, in tabular form; and if he will make a statement on the matter. [40109/26]
View answer477. Deputy Cathal Crowe asked the Tánaiste and Minister for Finance the number of corresponding employees who benefited from the KEEP scheme each year since its introduction, in tabular form; and if he will make a statement on the matter. [40110/26]
View answerI propose to take Questions Nos. 476 and 477 together.
The Key Employee Engagement Programme (KEEP) was introduced by Finance Act 2017 and commenced on 1 January 2018, via section 128F of the Taxes Consolidation Act (“TCA”) 1997. The aim of the scheme is to support SMEs in Ireland in competing with larger enterprises to recruit and retain key employees, by way of a targeted share option programme. KEEP is a notified State aid scheme, as such any changes to the scheme are subject to the approval of the European Commission. In addition there are a number of qualifying conditions to be met. Where the provisions of section 128F TCA 1997 are met, an exemption from income tax, USC and PRSI applies to a qualifying employee on any gain realised on the exercise of a qualifying share option.
Section 128F imposes an obligation on every qualifying company to file a return with Revenue for any year in which it grants an option to an employee, or any year in which an option is exercised, transferred, or released. This return is known as the KEEP1 and must be filed on or before 31 March in the following year.
The table below represents the number of companies who filed a KEEP1 return for each year since the introduction of the KEEP scheme. As outlined, a company is obliged to file a return for each year in which it grants an option to an employee, and each year in which an option is exercised, transferred, or released. As result a company may be included in one or more tax years below.
The table below also shows the number of employees who exercised a share option and availed of the tax relief afforded by the KEEP scheme in each corresponding year. The number of employees who exercised a share option is as returned by the relevant company in the annual KEEP 1 return.
This data represents a point in time position based on the information available to Revenue. Please note that due to Revenue’s responsibility to protect taxpayer confidentiality, and Statistical Disclosure Closures (“SDC”) rules, Revenue does not provide data points on groupings of taxpayers (individuals or companies) where the number of taxpayers in that grouping is <10. In addition, as there was no opportunity for employees to exercise share options in the 2018 tax year, a non-applicable (NA) value is applied in the table below.
|
Year |
No. of Companies |
No. of employees |
|
2018 |
10 |
NA |
|
2019 |
35 |
<10 |
|
2020 |
30 |
37 |
|
2021 |
43 |
32 |
|
2022 |
40 |
26 |
|
2023 |
35 |
<10 |
|
2024 |
37 |
Not available* |
*The number of employees availing of KEEP and the estimated associated tax cost are published on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/cost/index.aspx.
The data for 2024 will be available at the same location in Q3 of this year.
478. Deputy Paul Lawless asked the Tánaiste and Minister for Finance the amount of VAT collected on building materials and construction services in each of the past ten years. [40112/26]
View answerI am informed by Revenue that traders are not required to identify the VAT yield generated from the purchase or supply of specific goods and services nor are they required to distinguish specific VAT rates on their periodic VAT returns. Therefore, it is not possible to provide an accurate estimate for the VAT yield generated from construction services or building materials.
However, using several third-party data sources, a tentative estimate of the VAT yield generated on construction related activity is presented in the table below for the requested years.
|
Year |
Estimated VAT on Construction (€bn) |
|
2016 |
€1.5 |
|
2017 |
€1.6 |
|
2018 |
€1.8 |
|
2019 |
€2.0 |
|
2020 |
€1.9 |
|
2021 |
€1.8 |
|
2022 |
€2.1 |
|
2023 |
€2.5 |
|
2024 |
€2.9 |
|
2025 |
€3.3 |
479. Deputy Charles Ward asked the Tánaiste and Minister for Finance the estimated first and full-year yield from each percentage point increase in the minimum effective tax rate of persons earning more than €400,000 per annum; and if he will make a statement on the matter. [40196/26]
View answerIn relation to the Deputy’s question, the structure of the Irish personal income tax system does not provide for a minimum effective tax rate, and so it is not possible to perform the costing requested.
An individual will normally pay income tax, PRSI and USC on their employment income and earnings, and the rates at which they are liable to these charges is dependent on their overall level of income and their own specific circumstances.
480. Deputy Charles Ward asked the Tánaiste and Minister for Finance the estimated individual savings per relief and the total full-year savings to the Exchequer from applying only the standard rate of tax to all discretionary tax expenditures; if this table can categorise those reliefs and expenditures that cost in excess of €5 million per annum, and in excess of €10 million per annum in revenue foregone, in tabular form; and if he will make a statement on the matter. [40197/26]
View answerI am advised by Revenue that the table below provides details on tax reliefs allowed at rates higher than the standard rate and sets out estimates associated with standard-rating the relief allowed.
The table also includes a categorisation of the current cost of each relief into ‘>€5m’ and ‘>€10m’ as requested by the Deputy.
All figures relate to 2023 unless otherwise stated.
|
Expenditures |
Estimated Tax yield from standard-rating €m |
Categorisation of current Tax cost |
|
Allowance for Seafarers |
0.1 |
<€5m |
|
Dispositions such as Maintenance Payments * |
6 |
>€10m |
|
Donations to Approved Sporting Bodies |
0.3 |
<€5m |
|
Employing a Carer |
3.7 |
>€5m and <€10m |
|
Health Expenses (Nursing Homes) |
10 |
>€10m |
|
Employee Pension Contribution |
776 |
>€10m |
|
Rental Deduction for Leasing of Farm Land |
12 |
>€10m |
|
Relief for expenditure on significant buildings and gardens |
0.9 |
<€5m |
|
Stock Relief (General) (S666 Taxes Consolidation Act 1997) |
2.4 |
>€5m and <€10m |
|
Stock Relief (for Young Trained Farmers) (S667B Taxes Consolidation Act 1997) |
0.1 |
<€5m |
|
Stock Relief (for Registered Farm Partnerships) (S667C Taxes Consolidation Act 1997) |
0.05 |
<€5m |
|
Permanent Health Benefit Premiums |
2.2 |
<€5m |
|
Foreign Earnings Deduction |
2.2 |
<€5m |
|
Donations to Charities and Approved Bodies |
15 |
>€10m |
|
Total |
831 |
|
*data relates to 2019, the latest year for which data is available for analysis.
481. Deputy Emer Currie asked the Tánaiste and Minister for Finance the estimated cost of abolishing the 0.5% and 2% rate of USC; and if he will make a statement on the matter. [40203/26]
View answerI am advised by Revenue that the estimated cost of abolishing the 0.5% and 2% rate of Universal Social Charge (USC), as per the proposal outlined by the Deputy, on a first and full year basis, is €910 million and €1,040 million respectively.
As a reduced rate of USC of 2% currently applies for those aged 70 years or older with income of €60,000 or less and for those who hold a full medical card with income of €60,000 or less, the estimated costings assume this reduced rate remains unchanged at 2%, but that eligible taxpayers would pay no USC on the first €28,700, in-line with the start of the 3% USC band for other taxpayers paying the normal rates of USC.
These costs are estimates for 2026 based on Revenue’s micro-simulation tool, Tax Modeller, using actual data for the latest year available, currently 2023, adjusted for income and employment trends in the interim.
482. Deputy Emer Currie asked the Tánaiste and Minister for Finance if consideration will be given to increase the help-to-buy ceiling to reflect current prices in the Dublin metropolitan area; and if he will make a statement on the matter. [40204/26]
View answerThe Help to Buy (HTB) incentive, 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 (30 April 2026), the scheme has supported over 65,000 individuals or couples to buy or build their own home.
The Programme for Government commits to the retention and revision of the HTB scheme. However, and as the Deputy will also 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.
