Written Answers Nos. 136 - 170
140. Deputy Barry Heneghan asked the Tánaiste and Minister for Finance whether his Department has undertaken any examination of additional tax measures for family carers and persons with disabilities, in recognition of the additional day to day costs associated with disability, including energy, transport and healthcare-related expenses; and if he will make a statement on the matter. [39891/26]
View answerThe Government recognises the significant financial pressures experienced by households with disabilities, particularly amid the heightened cost-of-living conditions of recent years. In response, we have implemented targeted budget measures designed to support those most vulnerable.
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 was the first step in delivering on this ambition, providing some €3.83 billion to specialist disability services this 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.
It also provided a €1.15 billion package of new social protection measures, containing significant targeted measures to support disabled people and carers, including:
• A €10 increase in the weekly rates of payment
• Ensured people moving from Disability Allowance or Blind Pension to take up work will be able to retain their Fuel Allowance payment for five years
• Increase the Earnings Disregard for Carer’s Allowance by €375 to €1,000 for a single person and by €750 to €2,000 for a couple from July 2026
• The income limit for Carer’s Benefit will increase by €375 to €1,000 per week from July 2026
• €20 increase in the monthly Domiciliary Care Allowance payment.
As with previous budgets, the Department of Finance conducted a distributional analysis of Budget 2026 to examine the impact of proposed tax and welfare measures on a range of households, which was published in ‘Beyond GDP – Quality of Life Assessment’ on Budget day.
When comparing income levels from the new tax and welfare measures in Budget 2026 with those arising from permanent measures in Budget 2025, the analysis finds that households with disabilities see higher disposable income gains (1½ per cent on average) than non-disability households (0.6 per cent on average). Furthermore, lower income households affected by disability see a larger increase in their disposable income than high income households. The lowest income households with disability see gains of 3.9 per cent, compared with gains of 0.1 per cent for the highest income cohort.
The Department’s analysis finds the tax and welfare measures introduced in Budget 2026 reduce the At Risk of Poverty rate for households with disability by 3.8 per cent.
Government has also recently introduced two packages of measures, worth over €750 million in total, to help offset some of the impact of rising energy prices for households and businesses. Overall, these packages of measures will reduce fuel prices for households and businesses and support key sectors of the Irish economy. Our best estimate is that our targeted interventions are reducing the annual rate of inflation by around ½ percentage point.
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.
149. Deputy Darren O'Rourke asked the Tánaiste and Minister for Finance the measures he intends to take to address the cost of home heating oil; and if he will make a statement on the matter. [38914/26]
View answerThe Government is very conscious of the price increases in home heating oil as a result of the conflict in the Middle East.
It is important to state that the spikes in the price of home heating oil are not as a result of taxes, nor Government policy, but due to the wholesale market price of oil.
Government extended the fuel allowance season, which would have normally run for 28 weeks, by a further four weeks in order to ease the financial burden on households. This resulted in additional payments of €152 to each of the nearly 470,000 fuel allowance recipients, who are most at risk of fuel poverty.
It meant that a typical household receiving the fuel allowance will have received €1,216 over the course of the fuel allowance season.
Conscious of the cost pressures being experienced by households owing to the conflict in the Middle East, I have already deferred the planned increase in carbon tax on home heating fuels, which was due to occur on 1 May, until 14 October.
Carbon tax remains an important part of Ireland’s overall commitment to tackling climate change and to lessen Ireland's dependence on fossil fuels, with successive annual budgets providing additional funds for targeted social protection payments, residential and energy efficiency measures, as well as funding to encourage green farming practices.
As of Budget 2026, the Government has allocated over €4.2 billion in carbon tax revenue for these purposes since 2020. ESRI analysis consistently shows the lower income deciles are better off as a result of the social protection measures funded by the increased carbon tax.
In Budget 2026, over €1.1 billion million was allocated to climate action measures and to ensure the most vulnerable are protected from the unintended impacts of the increase. This was an increase on the 2025 allocation, and included funding of -
• €566 million for retrofitting programmes, Just Transition and ODA-Green Climate Fund;
• €350 million for targeted social welfare interventions, such as the fuel allowance; and
• €173 million for green & sustainable farming measures.
Our need to decouple from fossil fuel dependence and achieve energy security is even more apparent now given the levels of volatility in international fuel markets. Ireland’s long-term commitment to tackling climate change remains strong.
150. Deputy Shay Brennan asked the Tánaiste and Minister for Finance if he plans to bring forward an amendment to section 50 of the Irish Collective Asset-management Vehicles Act 2015 to facilitate the use distributed ledger technology, cloud computing and other similar technologies to support the digital transformation of the funds sector; and if he will make a statement on the matter. [39401/26]
View answer158. Deputy Cormac Devlin asked the Tánaiste and Minister for Finance if he plans to review the Irish Collective Asset-management Vehicles Act 2015; and if he will make a statement on the matter. [39425/26]
View answerI propose to take Questions Nos. 150 and 158 together.
Tokenisation, the process whereby an underlying asset or pool of assets, tangible or intangible, is converted into digital “tokens” that act as its proxy – could fundamentally reform how capital markets operate, enabling real-time trades; increasing transparency and liquidity; expediting clearing and ultimately providing for simultaneous settlement.
The Funds Sector 2030 Report included a recommendation that industry should continue to engage with the Central Bank of Ireland and the Department of Finance, as necessary “with a view to mapping out a pathway for adoption of tokenisation”.
The Department fully support and encourage the work that industry has undertaken to assess what can be done within the current legislative and regulatory frameworks.
Officials from my Department are considering submissions from industry regarding proposed changes to the current legislative framework.
As part of the Saving and Investment Union (SIU) strategy, the European Commission has published the Market Integration and Supervision Package (MISP). This package will amend 18 pieces of existing EU financial services legislation across trading, clearing, settlement and assets management.
Amending the DLT framework among other related measures forms part of the MISP proposal which seeks to turn the use of DLT in capital markets from a limited “sandbox” into something that can be scaled across the single market, The DLT Pilot Regime is being amended so that tokenised securities can be issued, traded, and settled at meaningful scale. Other changes amend existing EU financial services legislation, making them technologically neutral, allowing for the use of DLT and other technologies. This proposal is currently under negotiation at EU level.
In March this year, the Central Bank published a Discussion Paper on tokenisation. Submissions on the discussion paper are invited by the Central Bank by 5 June 2026. The Central Bank intends to publish a feedback statement following the consultation period. My officials will continue to engage closely with the Central Bank on the matter.
151. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance if he is considering introducing limits on time losses that can be carried forward against current profits for taxation purposes; and if he will make a statement on the matter. [39771/26]
View answerUnder the Irish corporation tax regime, companies can use trading losses in a variety of ways. If a company sustains trading losses in an accounting period, they can be offset against trading income for the same accounting period, and trading income for the immediately preceding accounting period. Any unused trading losses may be utilised against non-trading income, including chargeable gains, on a value basis. A trading loss may also be surrendered to group companies, subject to certain conditions and restrictions. Any unused trading losses can be carried forward, without time limit, against trading income of the same trade in future accounting periods.
The carry forward of loss relief recognises the fact that business cycles run over a longer period than just a single year and that it would be inequitable to tax profits in one year and not allow loss relief in the next. The treatment of losses in Ireland is a long-standing feature of our tax system and is a standard feature of the tax systems in OECD countries.
Changes to tax law are generally made on a prospective basis, so losses already recognised in the tax system would not typically be subject to a new restriction. Due to the manner in which loss relief operates, it could also be difficult to date pre-existing losses (e.g. for the purposes of a time limit), or to separate losses carried forward from excess capital allowances carried forward.
The Deputy may recall that, in 2018, Department of Finance officials produced a detailed technical note for the Committee on Finance, Public Expenditure and Reform, and Taoiseach, on both bank losses and corporation tax losses more generally. The technical note considered the potential implications of restricting the use of losses carried forward, or the introduction of a specific time limit or “sunset clause” on loss relief, including potential implications for consumers.
152. Deputy Malcolm Byrne asked the Tánaiste and Minister for Finance for an update on the progress made towards ensuring more homes have access to flood insurance; and if he will make a statement on the matter. [39639/26]
View answerThe Government remains committed to protecting Ireland’s present and future generations by investing in climate adaptation measures to manage the impacts of extreme weather. Accordingly, €1.3 billion has been committed to the delivery of flood relief schemes over the lifetime of the National Development Plan (NDP) to 2030. This will protect approximately 23,000 properties across various communities from river and coastal flood risk.
In terms of flood insurance, the Central Bank of Ireland has undertaken extensive research into the nature and scale of the Flood Protection Gap in Ireland. They found that 1 in 20 buildings (approximately 5%) have limited access to flood insurance; and that 54% of this gap is concentrated in Dublin, Cork, Louth, Clare, and Kildare. The Central Bank are of the view that Ireland has “broadly managed flood risk to date” and the Report also notes that no single solution exists to address the flood protection gap.
Furthermore, according to EU level data, Ireland has an above average rate of flood cover relative to other EU Member States. However, it is acknowledged that some households are still experiencing difficulties, particularly in areas with demountable flood defences which require varying degrees of human intervention in their operation.
Building on the work carried out by the Central Bank, the Action Plan for Insurance Reform 2025-2029 includes 4 specific actions on flood and climate protection. With respect to Action 17 of the Action Plan, the Department of Finance is currently engaging with multiple stakeholders on the development of a long-term strategic approach to the provision of flood insurance, to consider potential solutions, specific to Ireland, to increase the availability and affordability of flood insurance. An update on the initial work regarding the role insurance coverage can play will be provided at the next Cabinet Sub-Group on Insurance Reform, which will take place later this week.
My officials will also continue to monitor developments at EU and international level and assess flood insurance matters, including through participation in the OPW and Insurance Ireland Working Group. These matters remain a priority for this Government and efforts continue to be made to ensure a responsive and appropriate approach from the insurance industry, in terms of the provision of flood insurance.
153. Deputy Naoise Ó Cearúil asked the Tánaiste and Minister for Finance to detail the contingency measures being considered to mitigate potential impacts on the Irish economy with regard to the risks identified in the Annual Progress Report 2026, including those related to global energy markets and geopolitical developments; and if he will make a statement on the matter. [39603/26]
View answerAs a country, Ireland faces a number of potential risks over the medium term which we have documented in the recent Annual Progress Report.
The most significant risks will undoubtedly be external in nature. Even before the conflict in the Middle East, it was clear that transformational shifts were gaining pace and that economic policymaking was increasingly intersecting with geopolitics.
As an open economy, Ireland has benefitted from free trade which has encouraged multinational activity. But the uncertainty in the global economic environment poses a serious threat to the Irish economy.
We have vulnerabilities in our tax base, particularly when it comes to corporation tax. Last year corporation tax accounted for around a third of the overall tax take. Five years ago, it accounted for a fifth of all tax revenue. This is a significant increase in a short space of time, and an exposure that must be carefully managed.
Government established the Future Ireland Fund and Infrastructure, Climate and Nature Fund to prepare for future structural challenges and to mitigate the risks associated with volatile corporation tax receipts. In total, just under €20 billion has now been transferred into the two funds. These funds ensure that we have the fiscal firepower to face future challenges from a position of strength.
Since 2022, on a general Government basis, Government has recorded consecutive surpluses. This has allowed us to respond to external shocks in a timely and effective manner and to prepare for future challenges that we know are on the horizon. The reduced debt burden, which last year stood at €210 billion, will also protect us against future unforeseen shocks.
Ultimately, in the context of a deeply uncertain global economic environment and future structural challenges, the best way to mitigate against future risks is by continuing to pursue a balanced and sustainable approach to overall budgetary policy as set out in Ireland's Medium-Term Structural and Fiscal Plan. It provides a robust framework for medium term budgetary planning, ongoing investment in public services and critical infrastructure, and preserves our capacity to respond quickly and effectively to crises as they arise.
154. Deputy Erin McGreehan asked the Tánaiste and Minister for Finance his plans for reform of deemed disposal tax; and if he will make a statement on the matter. [39408/26]
View answerDeemed disposal is an anti-avoidance measure that applies to investments in Irish domiciled investment funds and life assurance products, and to equivalent offshore funds and certain foreign life assurance products. It was introduced to prevent the indefinite roll-up of income and gains, and the associated loss of tax to the Exchequer.
Under deemed disposal, tax is levied every eight years after an investment is made, regardless of whether a disposal has in fact occurred. On the ultimate disposal of the investment, any tax paid is allowed as a credit against the final tax liability.
I acknowledge the complexities associated with the deemed disposal rules, but any changes to these rules require guardrails to protect the Exchequer and ensure that appropriate taxation is paid. A balance between?supporting retail investment while retaining important and necessary anti-avoidance protections?is required and incredibly important.
I am committed to taking the necessary action to support retail investment in Ireland. Budget 2026 introduced a 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%.
Budget 2026 also included a commitment to publish a roadmap for the taxation of retail investment, setting out an approach to adapt the tax framework to further support retail investment while retaining necessary and important anti-avoidance protections. Work on the roadmap includes consideration of the European Commission’s Savings and Investment Account recommendation, and the Funds Review recommendations, including the issue of deemed disposal. The roadmap will be published in the coming months.
As I announced at the first annual Savings and Investment Forum, a key aspect of the roadmap is the development of a new Investment Account that aims to reduce the complexities related to retail investment taxation and allow Irish people to grow their savings more efficiently.
The investment account will take account of the the Commission's Recommendation which provides Member States with a European blueprint for such accounts, drawing on existing best practices to maximise their uptake and help achieve the objective of boosting retail participation in capital markets.
A key characteristic of this form of Investment Account, as per the Commission’s recommendation, is to be as simple as possible for the investor and for responsibility for tax compliance to lie with the account provider. It is my intention that the new investment account being introduced will be simple and accessible for retail investors.
155. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance the amount that has been paid out to date to hauliers under the extended diesel rebate scheme. [39405/26]
View answerThe Diesel Rebate Scheme is a State aid which provides qualifying road haulage and passenger transport operators with a partial repayment of Mineral Oil Tax paid on auto-diesel.
The scheme operates in accordance with the EU’s Energy Tax Directive, and the General Block Exemption Regulation on State aid. In 2025, almost €40 million was paid out under the scheme, providing targeted support to the road haulage and passenger transport sectors.
The DRS provides a targeted level of support to operators such as bus drivers, who may drop your children to school; to food delivery trucks, which keep our shelves stocked; to important and essential parts to Irish businesses’ supply chains, which means business can continue with a cushioned impact.
As such, the DRS has far wider impacts than just on these operators, it indirectly benefits households and businesses.
To qualify for the scheme, road haulage and passenger transport operators must have an appropriate road transport licence and be tax compliant. The auto-diesel must be used in qualifying vehicles in the course of the transport operator’s business. In addition, the auto-diesel must have been purchased with tax paid in the State, by means of a Revenue approved fuel card provider, or in bulk for delivery to the transport operator’s business premises.
The Diesel Rebate Scheme rate of repayment is linked to the average retail price of auto-diesel, based on data from the Central Statistics Office. Since the end of 2021, a 7.5 cents maximum level of rebate has applied to all claims.
In response to the current fuel crisis, I recently increased the repayment cap from 7.5 cents per litre to 12 cents per litre. This enhanced or extended repayment rate applies to claims covering fuel purchased between 1 January to 30 June this year.
The Diesel Rebate Scheme, as prescribed in the Mineral Oil Tax Regulations 2012, operates on a quarterly repayment basis with repayment claims available for submission to Revenue quarterly in arrears. On 1 April 2026 Revenue opened the claim period for the enhanced rate under the rebate scheme for Quarter 1.
In the period from 1 April to 20 May 2026,1180 claims have been submitted to the value of €8.3m in respect of Q1 2026. This compares with 820 claims value €4m which were received for Q1 in the same filing period in 2025.
I am advised by Revenue that it is currently processing these claims and has, between 1 April 2026 and 20 May 2026, refunded 695 of those 1180 claims to the value of €4.5m under the enhanced rebate scheme.
To help meet the challenges posed by increased fuel costs arising from the war in the Middle East, the new Road Transporters Support Scheme (RTSS) also provides significant financial support to licenced hauliers, the own account sector, and commercial coach operators. The cost of these supports to the transport and road haulage sector is estimated at €40 million per month.
In total, support measures brought in by this Government are estimated to cost in excess of €750 million.
156. Deputy Peter 'Chap' Cleere asked the Tánaiste and Minister for Finance if he will consider, in the context of Budget 2027, the introduction of a 20% tax relief on children's sports memberships; and if he will make a statement on the matter. [39767/26]
View answer157. Deputy Ryan O'Meara asked the Tánaiste and Minister for Finance if he is exploring the potential of a tax credit for memberships of gyms and sports clubs; and if he will make a statement on the matter. [39419/26]
View answerI propose to take Questions Nos. 156 and 157 together.
As the Deputy will be aware, the Programme for Government, Securing Ireland’s Future, contains a commitment “consider measures, in conjunction with the Department of Finance, to encourage gym membership and active participation in sport and exercise.”
The tax code already provides for a number of fitness-based measures more generally i.e. the Cycle to Work Scheme and the Accelerated Capital Allowances scheme for Childcare facilities and Fitness Centres which encourages employers to develop childcare facilities and fitness centres onsite for their employees.
Furthermore, the private gym sector already receives tax-based public support through a reduced rate of VAT of 9 per cent on membership fees. It is estimated that this reduced rate saves private gym operators and gym members in the order of approximately €30 million per annum.
An exemption from Income Tax and Corporation Tax applies for the income of certain bodies established for the purpose of the promotion of athletic or amateur games or sports where it can be shown to the satisfaction of Revenue that such income is applied solely for those purposes. Any income received and availing of the relief by the sports body must be used for the purpose of promoting the game or sport.
There is also a scheme of tax relief for donations to approved sports bodies for approved projects. This includes tax relief in respect of donations for capital projects such as the purchase, construction or refurbishment of a building or structure for use for sporting activities, the purchase of land to provide sporting facilities.
Officials in my Department considered potential tax measures to support gym and sports membership as part of the annual Tax Strategy Group process last year, in chapter 10 of the Income Tax, Tax Strategy Group - 25/01 paper which is available on my Department's website. After considering the matter, the introduction of an Income Tax relief on gym and sports membership was not recommended at that time.
However, taxation matters are reviewed on an annual basis as part of the budgetary process.
As the Deputy will know, 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.
159. Deputy Pa Daly asked the Tánaiste and Minister for Finance if he has considered reducing the VAT on electricity to 0% for households; if he has raised the changes that would be required to the EUs VAT directive with other EU member states; if he will make this a priority during Ireland's EU Presidency in order to reduce the cost of energy; and if he will make a statement on the matter. [39599/26]
View answerThe position remains as outlined to Deputies Daly and Doherty on 21 April 2026.
As I noted at the time, 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 of the VAT Directive, a reduced or zero VAT rate may be applied.
It is important to note that Ireland applies more reduced and zero rates than every other Member State. Some Member States prefer not to introduce greater variability in VAT across the EU.
The last amendments to Annex III were agreed in 2022 after four years of negotiation. However, electricity was not included in these amendments and therefore the lowest rate that may be applied to VAT in Ireland is the second reduced rate of 9%. The application of the 9% VAT rate on supplies of gas and electricity was introduced from 1 May 2022. This measure was extended on a number of occasions, most recently in Budget 2026 when the measure was extended to 31 December 2030. The total estimated cost of the reduced VAT rate for gas and electricity from its introduction on 1 May 2022 to the end of this year will be over €1 billion.
At present there are no proposals at EU level to re-open the VAT Directive regarding zero rates for electricity, however, officials in my Department and across Government continue to engage with their European counterparts and with the European Commission in relation to the ongoing energy crisis. As the Deputy will be aware the European Commission is working with Member States on the EU wide response to this crisis.
The Government is acutely aware of the difficulties faced by households and businesses as a result of the ongoing crisis in the Middle East.
In addition to significant reductions in the rates of mineral oil taxes, there has been an increase in the Fuel Allowance rate to €38 per week with an expansion in the eligibility rules, meaning many more people now qualify.
Additional protections are also in place for customers experiencing difficulties in paying their bills. Minister O’Brien has engaged with the four biggest energy retailers in recent months to ensure that hardship funds and focused measures are in place for any customers who find themselves in difficulty.
The National Energy Affordability Taskforce is also preparing an Energy Affordability Action Plan that will be completed in Q3 of this year.
Finally, as the Deputy may be aware, if there were any proposed changes to the VAT Directive they would need to be agreed by unanimity.
160. Deputy Matt Carthy asked the Tánaiste and Minister for Finance the amount Ireland contributed and received from to the EU Multiannual Financial Framework in the years 2020 and 2025; and the projected amounts for 2027 and 2030. [39896/26]
View answerMy Department collects data on Ireland’s EU Budget receipts from relevant Government Departments for publication in the EU Transactions Reports.
Ireland received of the order €1.9 billion, €2.4 billion, €2 billion and €1.7 billion from the EU budget over 2020 to 2023 respectively. These figures include areas such as agriculture, cohesion and Erasmus+. They do not include funds directly managed by the European Commission and can differ from figures published by the Commission due to differences in accounting practices.
My Department is currently collecting the data on receipts for 2024, which will be published in due course.
My Department does not forecast Ireland's expected EU budget receipts for future years, which depend on a range of factors, including the status and speed of domestic project implementation, and the timing of individual Departments’ payment requests to the European Commission.
Ireland contributed €2.6 billion, €3.5 billion, €3.6 billion, €3.7 billion, €3.4 billion and €3.5 billion to the EU budget over 2020 to 2025 respectively.
With regard to projected contributions, my Department’s most recent forecast was prepared for Budget 2026, for the remaining years of the current Multiannual Financial Framework period, which ends in 2027. My officials will continue to work on revising these forecasts as the MFF period progresses. The projected contributions for the remaining two years are €4.4 billion in 2026 and €4.9 billion in 2027. This increase is linked to several factors, including the size of the annual EU budget and Ireland’s strong economic performance.
The Deputy may recall that Ireland was a significant net beneficiary from the EU budget since accession in 1973, until 2013 when we became a net contributor, reflecting our economic transformation over fifty years of membership. We recognise the value the budget brings to our people, our civil society, and our businesses.
Negotiations are ongoing at EU-level since July last year on the Commission’s proposal for the next MFF covering 2028 to 2034. Ireland’s EU budget contributions for the years 2028 to 2030 will depend on the results of those negotiations: namely, the volume of the agreed budget for the years in question, and any changes to the EU budget’s revenue system.
161. Deputy Grace Boland asked the Tánaiste and Minister for Finance the number of calls received by the Revenue Commissioners in each of the past three years; the average call waiting times and call abandonment rates in each year; the average response times for correspondence submitted by post, email and through the MyEnquiries system in each year; and if he will make a statement on the matter. [39983/26]
View answerI am advised by Revenue that, with a view to capturing comprehensive data on its telephone service performance, facilitating transparency and driving efficiency improvements, it introduced a new telephony system in September 2024 which records data on calls received, call waiting times and call abandonment rates in full, though as a consequence, complete data is only available for the most recent 19-month period.
Revenue's telephone service handled a significant volume of contacts over the 19-month period, with just under 7 million calls received. However, this figure represents all calls that reached Revenue's telephony system, encompassing calls answered by staff, calls abandoned while in the queue, calls where the queue capacity was reached, calls received outside of office hours, and other system-recorded contacts.
Of the total calls received, 2.75 million calls were answered directly by Revenue staff, reflecting the substantial demand for live telephone-based support across the organisation's full range of services.
The average call waiting time over the period was 5 minutes and 15 seconds, which compares favourably given the scale of demand placed on the service. Revenue continues to keep waiting times under active review as part of its ongoing commitment to providing a timely and accessible telephone service to all taxpayers and agents.
The call abandonment rate for the period was 12.14%, representing 380,000 calls where taxpayers did not remain in the queue until their call was answered. Revenue is conscious of the importance of minimising abandonment rates and continues to explore measures to further improve call handling capacity and reduce waiting times, including through investment in its telephony infrastructure and the promotion of alternative contact channels such as MyEnquiries, which can often provide a faster and more convenient means of engaging with Revenue.
In 2024, Revenue also introduced a hold my place in queue feature on some of its phone lines to further enhance the taxpayer experience. This feature eliminates holding periods on relevant phone lines by allowing taxpayers to leave their contact details and subsequently receive a call back once their call reaches the top of the queue. This service was expanded across the customer service case base in 2025, and over 27% of calls to the PAYE helpline during 2025 were handled by this facility.
Response times are driven primarily by complexity and the completeness of information provided. To provide some context, Revenue has informed me that in Q1 of this year, 53% of MyEnquiries via MyAccount/ROS were responded to within 5 working days with 70% responded to within 20 working days.
As a general guide, straightforward service requests (for example, updating bank details or issuing a tax credit certificate) are typically resolved within a few working days whereas third-party data or technical determinations can take several weeks with compliance interventions or audits extending over several months. Revenue also prioritises urgent cases involving hardship or vulnerability.
To ensure optimum support to PAYE taxpayers throughout the year, Revenue continuously reviews its service channels and deploys its resources on an agile basis to meet demand. For example, analysis of PAYE taxpayer telephone activity indicates that most contacts are received during the morning, with much reduced demand in the afternoon. Operating the PAYE Helpline from 09.30 to 13.30hrs., Monday to Friday ensures that the service is there to meet demand while also ensuring adequate resources are available to provide timely replies to queries received through the increasing online channel and through the post.
The early months of each year (January to April) place the highest demand on Revenue’s PAYE Services as taxpayers submit their income tax returns for the previous year, claim refunds or reliefs to which they may be entitled, and review tax credits for the current year. From 1 January 2026 to close of business on 5 May 2026, PAYE Helpline staff answered over 231,767 calls and processed over 494,587 items of correspondence received through its online services and postal system.
To further improve the taxpayer experience, during 2025 Revenue has piloted a new customer service “Estimated Response Time” development on the MyEnquiries portal to provide taxpayers with an estimated timeline for a response to their correspondence.
Detailed information on Revenue's performance across a wide range of service delivery metrics, including correspondence handling, is published each year in their Annual Report, which is available on Revenue's website. The Deputy may also find Revenue's Service Delivery Report informative, which was introduced following the publication of its Customer Charter in March 2025. That Report, also published on Revenue’s website on a quarterly basis, provides performance results across key aspects of customer service.
In addition to its telephone services, Revenue further advises me that it also manages customer correspondence/queries across other communication channels: post and its online myEnquiries system. For example, in 2023, Revenue dealt with 4.2 million items of correspondence, in 2024 it dealt with 4.1 million items of correspondence and in 2025 it dealt with 4.5 million items of correspondence.
I am advised by Revenue that it is committed to delivering a high-quality, accessible, and responsive service to all taxpayers and agents and will continue to monitor and seek to improve performance across all contact channels.
162. Deputy Tony McCormack asked the Tánaiste and Minister for Finance if he plans to further increase the lifetime limit for the reduced 10% CGT rate for entrepreneurs; and if he will make a statement on the matter. [39654/26]
View answerRevised Entrepreneur Relief (RER) is provided for by section 597AA of the Taxes Consolidation Act 1997. RER provides that a reduced 10% rate of Capital Gains Tax (CGT) applies in respect of a chargeable gain or chargeable gains on a disposal or disposals of qualifying business assets by an individual on or after 1 January 2016, up to a lifetime limit.
A limit of €1 million applied to gains arising on disposals up to 31 December 2025. As announced in Budget 2026, the lifetime limit was increased to €1.5 million in respect of gains made on disposals on or after 1 January 2026.
The increase in the lifetime limit to €1.5 million in Budget 2026 had an estimated cost to the Exchequer of €31 million based on the latest Capital Gains Tax returns for 2023. Based on the same returns, an increase in the lifetime limit to €2 million was estimated to cost €54 million.
The increased lifetime limit of €1.5 million can allow scope for further growth of a business before an entrepreneur seeks to crystalise their gains by disposing of their business assets to avail of the relief. It can also act as an incentive for serial entrepreneurship by allowing future additional gains to be eligible for the relief, subject to the new higher €1.5 million lifetime limit.
As with all tax incentives, the RER is kept under review, and any amendments must have regard to impacts on Exchequer costs as well as wider CGT policy.
163. Deputy Erin McGreehan asked the Tánaiste and Minister for Finance if he is exploring the potential of a tax credit for children; and if he will make a statement on the matter. [39409/26]
View answerThe previous personal income tax packages implemented have made significant progress on increasing the entry point to income tax for all income earners, including those with children, and increasing the point at which the higher rate of income tax takes effect.
Over the lifetime of the previous Government, the main tax credits increased from €1,650 to €2,000 representing an increase of €350 or 21.2 per cent. The standard rate cut-off point was increased from €35,300 to €44,000 representing an increase of €8,700 or 24.6 per cent.
These measures are expected to be in line with wage growth.
In addition, the USC ceiling of the band for the 2 per cent rate was increased in line with the increases to the National Minimum Wage. There was also a significant reduction in the middle rate charge from 4.5 per cent to 3 per cent.
As the Deputy will be aware the most recent Budget provided a range of support 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.
In addition, the following measures are provided to assist offset the costs of early learning and childcare:
• The Accelerated Capital Allowances scheme for Childcare Services encourages employers to develop childcare facilities onsite for their employees. It allows for 100% wear and tear allowances in respect of the capital expenditure incurred on childcare equipment for the year in which the equipment is first used. An accelerated industrial buildings annual allowance of 15% over 6 years and 10% in year 7 can also be claimed for capital expenditure incurred on the construction of a childcare services facility.
• Individuals who provide child-minding services in their own home may claim childcare services relief each year, provided that they do not receive more than €15,000 income per annum from the child-minding income.
It also important to keep in mind the decisions which have been taken to permanently reduce costs on families including
• an increase the subsidy under the National Childcare Scheme, reducing the cost of childcare,
• the free schoolbooks scheme, and
• the introduction of hot school meal.
Finally, 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 the sound management of the public finances. It is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters which might be the subject of Budget decisions.
165. Deputy Colm Burke asked the Tánaiste and Minister for Finance if he will consider increasing the small gift exemption for capital acquisitions tax from €3,000 to €5,000 from each person per year given it has not been increased for a long number of years; and if he will make a statement on the matter. [39421/26]
View answerCapital Acquisitions Tax (CAT) is a tax on gifts and inheritances that is payable by the beneficiary of the gift or inheritance on the value of the property received.
The relationship between the person giving a gift or inheritance and the beneficiary determines the maximum amount, known as the “Group threshold”, below which CAT does not arise.
Any prior gift or inheritance received by a beneficiary since 5 December 1991 from within the same Group threshold is aggregated for the purposes of determining whether tax is payable on a benefit.
Where a person receives a gift or inheritance and the value of the property received exceeds the relevant Group threshold, CAT at a rate of 33% applies on the excess.
There are three Group thresholds:
• the Group A threshold (currently €400,000) applies where the beneficiary is a child of the person giving the gift or inheritance;
• the Group B threshold (currently €40,000) applies where the beneficiary is a brother, sister, nephew, niece, lineal ancestor or lineal descendant of the person giving the gift or inheritance;
• the Group C threshold (currently €20,000) applies in all other cases.
In addition to the above, a person may receive gifts up to the value of €3,000 from any person in any calendar year without having to pay CAT. This is generally referred to as the small gifts exemption.
Gifts within this limit are not taken into account in computing tax and are not included for future aggregation purposes.
The effect of this is that a person can take a gift from several people in the same calendar year and the first €3,000 from each person is exempt from CAT. In addition, where the value of a gift from a person exceeds €3,000, only the excess is taken into account for calculating CAT.
The gift exemption applies only to gifts and not to inheritances.
The options available for increasing the CAT small gift exemption must be balanced against competing demands, but will be considered as part of the annual Budget and Finance Bill process. As the Deputy will be aware, it is a longstanding 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.
166. Deputy Tony McCormack asked the Tánaiste and Minister for Finance his response to claims that Ireland's SMEs are being held back by a tax system that stymies growth and ambition; and if he will make a statement on the matter. [39653/26]
View answerSMEs are the backbone of the Irish economy, accounting for the majority of employment in the State. Their vital importance to our economy is reflected in the Programme for Government commitments for this sector.
The current taxation environment for SMEs combines a low corporate tax rate with a range of incentives to help companies access investment, scale-up and expand. The incentives complement a suite of other enterprise supports such as grant and credit schemes.
Ireland’s corporate tax strategy is designed to promote enterprise. It is important to recognise the positive impact of a low tax rate of 12.5% for businesses including SMEs.
My Department has been proactive in supporting SMEs by introducing and expanding a number of taxation measures which help small businesses. Measures include the Section 486C relief for certain start-up companies; the Employment Investment Incentive (EII); the Start-Up Relief for Entrepreneurs (SURE); the Start-Up Capital Investment (SCI); the Key Employee Engagement Programme (KEEP); Angel Investor Relief and the R&D tax credit. These tax incentives have undergone significant change in recent years following feedback from stakeholders in particular the SME community.
To support and encourage start-up companies in Ireland and recognising that small businesses are significant drivers of employment and economic activity across the country, section 486C provides relief from corporation tax on trading income (and certain capital gains) of start-up companies in the first five years of trading. The value of the relief is linked to the amount of Employer and Class S PRSI (pay-related social insurance) paid by the company, thus supporting the creation of jobs.
EII provides an incentive for investment in SMEs by giving Income Tax relief to individuals who provide equity-based finance to trading companies. This investment assists companies to scale-up, expand and create or retain jobs.
SURE is a tax relief for entrepreneurs who leave an employment to set up their own company. It provides a refund of Income Tax paid in previous years where the individual sets up a new company and invests in that company through the purchase of shares.
SCI is a tax relief for early-stage micro companies to attract equity-based risk finance from family members.
167. Deputy Sean Fleming asked the Tánaiste and Minister for Finance for an update on the development of the Credit Union Sector Strategy Project, following its recent launch; and if he will make a statement on the matter. [39630/26]
View answerThe Programme for Government includes a commitment to draft a five-year strategy for the credit union sector. Recently, the Minister of State and I approved a plan to determine the sector's long-term strategic direction, and this work is now underway. Two independent chairs have been appointed to lead the governance structures underpinning the delivery of the strategy:
• Dr Orlaigh Quinn has been appointed Chair of the Project Governance Board. She is a former Secretary General of the Department of Enterprise, Tourism and Employment.
• Tom Allen has been appointed Chair of the Strategy Committee. He recently retired as CEO of North Midlands Credit Union
The Project Governance Board held its first meeting on the 30th of April to commence the initiation and first phase of the project. The meeting, chaired by Dr Quinn, considered the Terms of Reference, governance arrangements, and overall scope of the strategy. Final versions of these documents will be approved shortly and published on the Department of Finance website.
Project Board Members agreed that this represents a significant opportunity to deliver an ambitious, first-of-its-kind, sector-wide strategy to future-proof the credit union movement, enabling it to address challenges and capitalise on emerging opportunities.
Significant resources have been allocated, and the strategy is expected to be delivered within a 12-month timeframe. The procurement process has commenced to engage a consultant to support strategy development and a facilitator to assist with the strategy workshops. In addition, a project team has now been established within the Department of Finance to assist with the delivery of research, drafting, stakeholder engagement and secretariat support for the Project Governance Board and Strategy Committee.
The strategy will be developed and implemented by credit union sector itself, reflecting the fact that credit unions are best placed to understand and respond to the needs of their members' and communities. To support this reach out to members and communities, the Minister of State has attended the first of a series of Community Stakeholder Roundtables in Claddagh Credit Union, Galway on the 14th of May. Continued participation from credit union CEOs, directors, staff, and volunteers will be sought as the project develops.
A core objective of the strategy plan is to be transparent and communicate regularly with the sector. Further information will be made available in due course, including a roadmap outlining the phases of the strategy, how the sector can participate in its development, and encouraging broad and active engagement throughout the process.
168. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance to outline his rationale for ruling out introducing an entity level tax on vulture funds using IREF structures to own residential property, despite his own Department recognising there is a 'strong case' for such a tax in order to ensure rental income does not flow out of the State untaxed. [39784/26]
View answerAs the Deputy is aware, the IREF regime is predominantly a withholding tax regime that applies to an Irish fund where 25 per cent or more of the value of the assets in a fund is derived from Irish property such as land and buildings. Where the profits of the IREF are transferred to a non-resident investor, the IREF is generally required to apply IREF withholding tax at a rate of 20 per cent.
There are exemptions from IREF withholding tax for certain investors, for example, where an investor is a domestic or EU/EEA equivalent pension scheme, investment fund or a life assurance company. These categories of investors are generally associated with collective, widely held investment. Exemptions are in line with international taxing norms. They are necessary to prevent double taxation in the hands of the ultimate individual investor, and it is a wider policy objective to support financial security through long-term investments such as pensions and life assurance policies.
The Funds Review report noted that while there appears to be a case for amending the IREF regime to incorporate an entity-level tax, this must be balanced against the need for private capital, domestic and international, to support the development and ownership of housing and other commercial real estate and with the need to have a stable regime, which allows for long-term investment decisions.
Following publication of the Funds Review report, further analysis of the recommendation and the IREF regime was carried out by officials in the Department of Finance, on foot of which it was announced in Budget 2026 that the recommendation to introduce an entity level tax will not be progressed, and that instead, a public consultation on proposals to simplify the IREF regime, without limiting its effectiveness, would be held.
169. Deputy Mairéad Farrell asked the Tánaiste and Minister for Finance to provide an update on financial support for renters, given that rental inflation is at its highest level on record; and if he will make a statement on the matter. [39764/26]
View answerA range of supports, both tax based and direct expenditure, are available to renters. Direct expenditure measures are, in the first instance, matters for the Minister for Housing, Local Government and Heritage and the Minister for Social Protection.
In relation tax based supports for renters, the Rent Tax Credit (RTC) was introduced by the Finance Act 2022 and may be claimed by taxpayer units in respect of qualifying rent paid in 2022 and subsequent years to end-2028.
The value of the credit for 2022 and 2023 was €500 for a singly assessed individual and €1,000 for a jointly assessed couple. For later years, the value of the credit increased to €1,000 for a singly assessed individual and €2,000 for a jointly assessed couple.
A taxpayer unit is either an individual with any personal status who is singly assessed or a couple in a marriage or civil partnership who have elected for joint assessment, in which case they are counted as one taxpayer unit.
The extent to which a claimant benefits from a tax credit, through a reduced tax liability and/or receipt of a refund for overpayment of a tax liability, is determined by their gross tax liability and the use of other tax credits and reliefs.
I am informed by Revenue that 313,980 taxpayer units claimed the RTC for 2022, with 273,160 of these taxpayer units benefitting from it, while in relation to 2023, 354,110 taxpayer units claimed the RTC, with 315,030 taxpayer units befitting from it. These numbers include both PAYE and self-assessed taxpayer units. In 2022 the Exchequer cost was some €156.4 million, and in 2023 some €183.5 million.
As on 19 May 2026, 335,969, 296,898 and 64,122 PAYE taxpayers had claimed the RTC for 2024, 2025 and 2026 respectively. It should be noted that most claims for credits by PAYE taxpayers take place after the year-end and it is expected that the number of claims for 2025 by PAYE taxpayers will continue to increase throughout 2026. PAYE taxpayers have 4 years in which to make a claim.
The data on claims by self-assessed taxpayers is not yet available for 2024, 2025 and 2026. Data in relation to 2024 is scheduled for release later in 2026, once the 2024 Form 11 returns has been processed and data is prepared for statistical analysis. Data availability in relation to later years will follow a similar pattern.
The estimated tax costs for the years 2024, 2025 and 2026 are not yet available. The cost to the exchequer is only determined when data for all taxpayer types is available, including self-assessed taxpayers. Data on the tax cost for 2024 will be available in Q3 of this year and will be published on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/cost/index.aspx. The filing deadline for self-assessed taxpayers in relation to 2025 is November 2026, and in relation to 2026 is November 2027, and therefore the data is not available for analysis in relation to these years.
The Programme for Government commits to progressively increase the RTC. 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.
Finally, it is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters which might be the subject of Budget decisions.
170. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Finance if he will introduce a flat rate tax of 20% on overtime pay; and if he will make a statement on the matter. [39657/26]
View answerIt is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation.
Ireland has a progressive income tax system which is structured such that the more income you earn, the more tax you pay. As a person’s income increases, they move up through the various rates and bands and, as a result, while the levels of take-home pay increase overall, the amount of tax they pay also increases.
As the Deputy will be aware, 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”. 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.
Finally, 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 the sound management of the public finances.
