Réada Cronin
Question:343. Deputy Réada Cronin asked the Minister for Transport for an update on the review of the national port policy; and if he will make a statement on the matter. [45954/26]
View answerPorts Policy
Questions (343)
Written answers
The review of the National Ports Policy (NPP) is ongoing. A Memorandum for Government on a draft text will be presented to Cabinet when deliberations with Ministerial colleagues are concluded.
Once approved by Cabinet, my Department will carry out a public consultation on the draft policy, together with related environmental reports. The finalised draft will then be returned to Cabinet for approval, with publication of the finalised text to follow thereafter.
I look forward to the same high level of stakeholder engagement with this second public consultation as was achieved during the first, which was based on a thematic Issues Paper. Over 70 responses to that consultation were received and carefully assessed by officials in my Department.
Departmental Projects
Questions (344)
Thomas Gould
Question:344. Deputy Thomas Gould asked the Tánaiste and Minister for Finance the areas the Living Cities Initiative applies to; and whether this will be extended. [45788/26]
View answerWritten answers
The Living City Initiative (LCI) is a targeted measure which is aimed at areas in need of regeneration. It is provided for under sections 372AAA to 372AAE of the Taxes Consolidation Act 1997. The scheme offers income or corporation tax relief for qualifying expenditure incurred in the refurbishment and conversion of qualifying residential and commercial buildings located within ‘Special Regeneration Areas' (SRAs) since 2015 in the cities of Cork, Dublin, Galway, Kilkenny, Limerick and Waterford and since April 2026 the Regional Centres/towns of Athlone, Drogheda, Dundalk, Letterkenny and Sligo.
Budget 2026 announced a number of enhancements to the LCI, with the changes provided for in Finance Act 2025. Firstly, it has been extended to the end of 2030, and secondly, it is now available to residential properties built before 1975 (instead of 1915, as previously). Furthermore, if the work is carried out by an enterprise, the maximum relief available has been increased from €200,000 to €300,000. It was also announced that the scheme would be extended to the five Regional Centres as set out in the National Planning Framework: Athlone, Drogheda, Dundalk, Letterkenny and Sligo.
The table below contains links to the eleven of the Statutory Instruments which set out the Special Regeneration Areas of the Cities/Regional Centres that have been designated as part of the LCI.
|
City/Regional Centre |
Link to the Special Regeneration Maps |
|
Athlone |
www.irishstatutebook.ie/2026/en/si/0152.html S.I. No. 152/2026 - Taxes Consolidation Act 1997 (Living City Initiative) (Special Regeneration Area) (Athlone) Order 2026 |
|
Cork |
www.irishstatutebook.ie/2015/en/si/0182.html S.I. No. 182/2015 - Taxes Consolidation Act 1997 (Living City Initiative) (Special Regeneration Area) (Cork) Order 2015. |
|
Drogheda |
www.irishstatutebook.ie/2026/en/si/0155.html S.I. No. 155/2026 - Taxes Consolidation Act 1997 (Living City Initiative) (Special Regeneration Area) (Drogheda) Order 2026 |
|
Dublin |
www.irishstatutebook.ie/2015/en/si/0183.html S.I. No. 183/2015 - Taxes Consolidation Act 1997 (Living City Initiative) (Special Regeneration Area) (Dublin) Order 2015. |
|
Dundalk |
www.irishstatutebook.ie/2026/en/si/0153.html S.I. No. 153/2026 - Taxes Consolidation Act 1997 (Living City Initiative) (Special Regeneration Area) (Dundalk) Order 2026 |
|
Galway |
www.irishstatutebook.ie/2015/en/si/0184.html S.I. No. 184/2015 - Taxes Consolidation Act 1997 (Living City Initiative) (Special Regeneration Area) (Galway) Order 2015. |
|
Kilkenny |
www.irishstatutebook.ie/2015/en/si/0185.html S.I. No. 185/2015 - Taxes Consolidation Act 1997 (Living City Initiative) (Special Regeneration Area) (Kilkenny) Order 2015. |
|
Letterkenny |
www.irishstatutebook.ie/2026/en/si/0154.html S.I. No. 154/2026 - Taxes Consolidation Act 1997 (Living City Initiative) (Special Regeneration Area) (Letterkenny) Order 2026 |
|
Limerick |
www.irishstatutebook.ie/2015/en/si/0186.html S.I. No. 186/2015 - Taxes Consolidation Act 1997 (Living City Initiative) (Special Regeneration Area) (Limerick) Order 2015. |
|
Sligo |
www.irishstatutebook.ie/2026/en/si/0151.html S.I. No. 151/2026 - Taxes Consolidation Act 1997 (Living City Initiative) (Special Regeneration Area) (Sligo) Order 2026 |
|
Waterford |
www.irishstatutebook.ie/2015/en/si/0187.html S.I. No. 187/2015 - Taxes Consolidation Act 1997 (Living City Initiative) (Special Regeneration Area) (Waterford) Order 2015. |
In relation to any further extension to the LCI, as the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget process, at the appropriate time, having regard to the sound management of the public finances and the impact any proposed changes would have on the broader housing market.
As with all taxation matters these are kept under review as part of the budgetary process.
Tax Data
Questions (345)
Niamh Smyth
Question:345. Deputy Niamh Smyth asked the Tánaiste and Minister for Finance the status of the change of law for inheritance tax at 33% for a person (details supplied); and if he can provide an update on this matter. [44975/26]
View answerWritten answers
Capital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances and is charged at a rate of 33%. For CAT purposes, the relationship between the person giving a gift or inheritance and the person who receives it determines the maximum amount, known as the “Group threshold”, below which CAT does not arise. 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 correctly 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.
Therefore, 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. Further details of the costs of changes are available on the Ready Reckoner which was updated and published by Revenue after Budget 2026.
Prize Bonds
Questions (346)
Ivana Bacik
Question:346. Deputy Ivana Bacik asked the Tánaiste and Minister for Finance further to Parliamentary Question No. 486 of 26 May 2026, if his Department is aware of the number of accounts affected by the issue raised; if his Department is aware of the value rendered inaccessible in such accounts; and if his Department is aware of the number of prize bond holders that have died in the past five years with funds being released by way of submission of a death certificate. [45006/26]
View answerWritten answers
The NTMA, who have been delegated responsibility for State Savings, have informed me that all Prize Bond holdings operate in accordance with their Terms and Conditions, including requirements that instructions on joint accounts must be authorised in line with agreed signing arrangements.
These safeguards reflect the Prize Bond Company’s duty of care to all joint account holders, ensuring that the interests of all parties are protected. Where the required authorisations are in place, funds are fully accessible.
The NTMA also informs me that as instances where the required authorisations are not provided are case, and circumstance, specific, they are not subject to centralised recording.
The number of deceased cases resolved over the past five years with the funds being released is 23,627. These had a combined value of just over €256 million.
The NTMA and its agent continue to engage with customers to resolve individual cases as efficiently as possible, while maintaining appropriate safeguards for all account holders.
Tax Yield
Questions (347)
Eoin Hayes
Question:347. Deputy Eoin Hayes asked the Tánaiste and Minister for Finance the total revenue yield from residential zoned land tax (RZLT); the estimated revenue yield of an increase in the RZLT rate to 5% of the land's annual value in a full year; and if he will make a statement on the matter. [45056/26]
View answerWritten answers
Residential Zoned Land Tax (“RZLT”) was introduced by section 80 of Finance Act 2021 to encourage the use of residential zoned and serviced land for the purposes of building homes. It is an annual tax which is calculated at 3% of the market value of land within its scope and is charged on 1 February each year beginning in 2025.
RZLT is a self-assessed tax which applies to land which has been zoned for residential use and is serviced. The tax aims to incentivise landowners to activate existing planning permissions for housing on land identified on maps published by Local Authorities as meeting this criterion, or to engage with planning authorities and seek planning permission in respect of such land. It is designed primarily as a behaviour changing measure rather than a revenue raising measure.
RZLT may be deferred where the relevant conditions are met — for example, in the 12-month period after the date of grant of planning permission or where residential development has commenced. Owners who complete development within the lifetime of their planning permission may never be obliged to pay the deferred tax. Where development is incomplete on expiry of the planning permission, a portion of the deferred tax may become payable based on level of completion. Deferred tax also falls due on the sale or transfer of a site outside of a group and must be paid before that transaction completes.
RZLT is due by 23 May each year.
I am advised by Revenue that collections for Residential Zoned Land Tax (RZLT) in respect of the 2025 period were €56.7 million. Using this as the basis for estimation, the annual additional yield of applying a 5% RZLT rate in 2025 is estimated to be €37.8 million. This is estimated on a straight line or pro-rata basis if the RZLT rate increased from 3% to 5%. The estimate also applies the pattern of deferrals and exemptions as recorded for the 2025 period.
Tax Credits
Questions (348)
Eoin Hayes
Question:348. Deputy Eoin Hayes asked the Tánaiste and Minister for Finance the total tax expenditure on the research and development tax credit in the most recent available year; the number of corporations that received the credit as a cash refund; of those, the number of corporations that had no corporation tax liability; and if he will make a statement on the matter. [45057/26]
View answerWritten answers
The Research and Development (R&D) tax credit is a broad measure available to all companies carrying on qualifying R&D activities. It provides companies with a tax credit equal to 35 per cent of the qualifying expenditure incurred on qualifying R&D activities. The R&D tax credit has been a cornerstone of our corporation tax policy since its introduction in 2004 providing support for cutting-edge scientific and technological research for over two decades.
I am advised by Revenue that the most recent year for which the requested information on the R&D tax credit is available is 2023.
The total tax expenditure on the R&D tax credit in 2023 was €976 million. The number of companies that claimed the R&D tax credit was 1,804, of these, the number that received the credit as a cash refund was 941 and the number of those companies that had no corporation tax liability was less than 10. Due to Revenue’s obligation to protect the confidentiality of taxpayer data, as provided for in Section 851A of the Taxes Consolidation Act 1997, it is not possible to provide data in relation to the exact number due to the low number of taxpayers involved.
I am additionally advised by Revenue that the total tax expenditure on the R&D tax credit for 2024 was €1,263 million and that further data in relation to 2024 R&D tax credit will be published in the coming weeks on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/r-d-credits/index.aspx.
Departmental Programmes
Questions (349)
Eoin Hayes
Question:349. Deputy Eoin Hayes asked the Tánaiste and Minister for Finance the total tax expenditure on the Special Assignee Relief Programme in the most recent available year; the total number of individuals currently availing of the relief; the breakdown of these beneficiaries, by income range; and if he will make a statement on the matter. [45058/26]
View answerWritten answers
The Special Assignee Relief Programme (SARP) was introduced by Finance Act 2012. The legislative provisions are included in section 825C of the Taxes Consolidation Act 1997 (TCA).
SARP is an income tax relief available to certain employees who are assigned from abroad by their employer to work in Ireland. Individuals who qualify for the relief can have a proportion of their employment earnings exempted from income tax. It is designed to support employers in relocating highly skilled key employees from foreign-based operations to Irish based operations, thereby facilitating skills transfer, job creation and the expansion of business operations in Ireland.
A review of SARP was undertaken by my Department and published on 7 October 2025. The review examined the rationale for SARP in targeting the multinational sector and the tax policies operated in other jurisdictions which seek to compete with Ireland for FDI projects and talent. Overall, the review concluded that the relief’s objectives are relevant and important in terms of maintaining competitiveness in the global talent market and in sustaining national economic resilience. This review is available on my Department's webpage.
On foot of this review, Finance Act 2025 made several amendments to the SARP including its five-year extension to the end of 2030. Additionally, the minimum threshold used in calculating the amount of annualised employment income subject to the relief has increased from €100,000 to €125,000 with respect to assignees who arrive in the State on or after 1 January 2026.
2023 is the latest year of assessment for which actual Revenue data is available. The estimated total cost of SARP in 2023 was €56.3m, of which €0.3m & €0.5m were in relation to travel and school fees respectively. In 2023, SARP was claimed by 2,925 individuals, who were linked with 600 employers.
A breakdown of beneficiaries by income range for 2023 is set out below:
|
Income Range |
2023 |
|
< €150,000 |
953 |
|
€150,001 – €225,000 |
808 |
|
€225,001 – €300,000 |
410 |
|
€300,001 – €375,000 |
218 |
|
€375,001 – €675,000 |
334 |
|
€675,001 – €1,000,000 |
103 |
|
€1,000,001 - €3,000,000 |
80 |
|
€3,000,001 and above |
19 |
Revenue publishes an annual statistical report on SARP, which can be found on the Revenue website.
Tax Credits
Questions (350)
Eoin Hayes
Question:350. Deputy Eoin Hayes asked the Tánaiste and Minister for Finance the number of qualifying PAYE and self-employed individuals who did not fully utilise their personal tax credit, and employee tax credit/earned income credit (as applicable) in the most recent available tax year; the total value of these unused credits; the average amount of unused credit per individual; and if he will make a statement on the matter. [45059/26]
View answerWritten answers
Income tax credits reduce the amount of income tax payable. Generally, all taxpayers have a personal tax credit (single/married credit) and an employee tax credit (PAYE workers) or earned income credit (self-employed persons). A person’s tax liability will depend on their individual personal circumstances, income levels and personal credits available to them and their family. Not all taxpayer units will fully utilise their tax credits, for example, if their income level is below the taxation threshold. The entry point to income tax was €17,750 for a single person in 2023. It is likely that taxpayer units who did not fully utilise these main tax credits had taxable income of less than the entry point to income tax as relevant to their personal circumstances.
I am advised by Revenue that the number of taxpayer units who claimed the personal tax credit but did not fully utilise it, that is they either utilised part of it or none of it, was approximately 646,400 in 2023. The value of this unused portion of the personal credit was approximately €1.0 billion, and therefore the average amount per this cohort of taxpayer unit was approximately €1,600.
In relation to the employee tax credit and the earned income credit, these two credits must be addressed together, since there is an interaction between them. Taxpayers can claim both credits if they have both a Case I/II income source and a PAYE income source, but the amount of the credits granted cannot exceed the value of one credit. I am advised by Revenue that the number of taxpayer units who claimed the employee tax credit and/or the earned income credit but did not fully utilise them, that is they either utilised part of them or none of them, was approximately 1,092,500 in 2023. The value of this unused portion of these credits was approximately €1.3 billion, and therefore the average amount per this cohort of taxpayer unit was approximately €1,200.
A taxpayer unit refers to an individual except in the case of jointly assessed couples, in which case the couple are combined and referred to as one taxpayer unit. The information cannot be provided at the individual level as the information on the utilisation is only available to provide at the taxpayer unit level.
The data provided relates to 2023, the latest year currently available for analysis. Data for 2024 will be available in Q3 of this year. As the filing deadline for self-assessed income tax returns has not yet passed, data in relation to 2025 will not be available until mid-2027.
The numbers provided relate to all taxpayer unit types including those in receipt of occupational pensions and income from the Department of Social Protection.
Financial Instruments
Questions (351, 352)
Albert Dolan
Question:351. Deputy Albert Dolan asked the Tánaiste and Minister for Finance whether for procurement spend, a purchase order can be raised within his Department's financial management systems without reference to a contract, framework agreement, procurement process or other authorising arrangement; if so, the circumstances in which this may occur; and if he will make a statement on the matter. [45164/26]
View answerAlbert Dolan
Question:352. Deputy Albert Dolan asked the Tánaiste and Minister for Finance whether an invoice can be paid by his Department without an associated purchase order having first been raised; if so, the circumstances in which this may occur; the number and value of payments made during quarter one of 2026 which were not associated with a purchase order; and if he will make a statement on the matter. [45182/26]
View answerWritten answers
I propose to take Questions Nos. 351 and 352 together.
The Department of Finance utilises the Financial Management Shared Service (FMSS), administered by the National Shared Services Office (NSSO), to support its accounting and financial management processes. FMSS is being implemented across an increasing number of Government bodies, replacing legacy systems with a centralised and standardised platform. This reduces costs, enhances security, and removes the need to maintain multiple systems.
As a general principle, the Department operates a “purchase order first” approach for procurement expenditure wherein purchase orders are raised for all applicable payments.
However, there are specific circumstances where it is not possible to raise a purchase order in advance. These arise where payments do not relate to the procurement of goods or services, or where the value cannot reasonably be determined beforehand. In such cases, payments may be processed without a purchase order in accordance with established financial controls.
Similarly, invoices may be paid without an associated purchase order in limited and defined circumstances, including:
• Grant or scheme payments that do not involve the purchase of goods or services
• Payments where the amount cannot be determined in advance
• Payments made by direct debit (e.g. utilities and bank charges)
• Payroll-related payments, including statutory or third-party deductions
• Certain payments to other public bodies
In Quarter 1 of 2026, the Department made a total of 8,463 payments with an aggregate value of €11,139,646.33.
Of these:
• 7,380 payments related to the Fuel Grant under the Disabled Drivers and Disabled Passengers Scheme. These are non-procurement payments relating to fuel used in previous periods (claims may cover up to four years) and therefore purchase orders do not arise.
• 479 payments related to flights and accommodation for official travel. Due to price volatility and the inability to determine costs in advance, purchase orders cannot be raised.
• 96 payments related to payroll, including staff salaries and payments to third parties such as pension contributions and union subscriptions.
• 67 payments were made to other State bodies, primarily relating to salary costs for seconded staff, where the amounts are not known in advance.
• 136 payments related mainly to utilities and bank charges, the majority of which are paid by direct debit and cannot be predetermined.
For completeness, 305 payments in Quarter 1 (with a total value of €649,249.75) were supported by purchase orders, in all cases where this was appropriate.
All purchase orders raised by the Department include relevant contract details. In addition, the NSSO has recently introduced functionality within FMSS to allow contract information to be recorded for non–purchase order payments where applicable.
The Department keeps its financial management processes and use of FMSS under ongoing review, works closely with the NSSO to enhance system functionality, and introduces additional controls where necessary to ensure strong governance and compliance with public financial procedures.
Question No. 352 answered with Question No. 351.
Revenue Commissioners
Questions (353)
Aidan Farrelly
Question:353. Deputy Aidan Farrelly asked the Tánaiste and Minister for Finance the number of sheriff warrants issued by the Revenue Commissioners in the first five months of 2026; and the total amount of tax involved in these warrants. [45247/26]
View answerWritten answers
I am informed by Revenue that between January and May 2026, Revenue issued 34,965 Sheriff referrals with a related tax value of €128.8m.
The Irish tax system operates on a self-assessment basis, where the onus is on taxpayers to meet their obligations for filing and paying their taxes correctly and on time. Revenue’s primary goal is to ensure that all taxpayers and businesses meet their tax obligations in a timely manner and pay liabilities as they fall due. Revenue’s clear preference is to work with taxpayers experiencing temporary cash-flow difficulties and to identify and agree mutually acceptable solutions in preference to deploying debt collection or enforcement sanctions.
However, where there is no meaningful engagement by the taxpayer and the debt remains outstanding, Revenue has no alternative but to use its debt collection and enforcement options to protect the Exchequer and maintain a level playing field for the vast majority of citizens who pay their taxes in full and on time.
As part of Revenue’s standard debt collection procedure, where current taxes become overdue, a request for payment will issue with details of the tax(es) due, requesting payment within a set timeframe. The request for payment outlines the consequences of continued non-payment and affords the taxpayer up to 10 days to engage.
The majority of taxpayers want to do the right thing by paying their taxes on time and, in many cases, on receipt of this initial notice, the customer will either make full payment for the overdue tax or contact Revenue to agree the payment of the tax within a mutually acceptable timeframe, at which point no further action is required.
In the absence of customer engagement, a Final Demand issues allowing another 7 days for the customer to engage. It is only where there is continued lack of engagement from the customer in response to the Final Demand and the debt remains outstanding that a case is escalated for enforcement action.
Artificial Intelligence
Questions (354)
Peadar Tóibín
Question:354. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance if he has an any way to identify which Parliamentary Questions are AI generated; and the amount it costs, on average, to answer a Parliamentary Question. [45370/26]
View answerWritten answers
The Department of Finance is committed to being transparent and helpful to all members of the Oireachtas. My Department does not have any way of identifying if a Parliamentary Question is AI generated.
My Department responded to 2,926 PQs in 2025 – 2,396 written and 530 oral. Staff members at all grades may be involved at some level in distributing, answering and submitting PQs for approval across the Department. The length of time spent on dealing with PQs can vary from a few minutes to a number of hours per week. As the processing and answering PQs is undertaken as part of the normal day to day work of the individual sections within the Department it is not possible to accurately extract the costs of processing PQs from the overall administrative costs of the Department.
Tax Data
Questions (355)
Carol Nolan
Question:355. Deputy Carol Nolan asked the Tánaiste and Minister for Finance the estimated reduction in VAT revenue caused by the abolition of VAT on newspapers in 2023; the reasons for this change; and his views on whether or not this tax reduction was passed on to consumers. [45518/26]
View answerWritten answers
I am 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 an accurate estimate of the cost of the abolition of VAT on newspapers based on tax returns alone.
However, using third-party data sources, a tentative estimate of the reduction in VAT revenue arising from the zero-rating of newspapers is presented in the table below for 2023 and subsequent years.
|
Year |
Estimated VAT €m |
|
2023 |
33 |
|
2024 |
33 |
|
2025 |
34 |
With regard to whether the reduction was passed on to consumers, I am further advised by Revenue that VAT returns do not require traders to disaggregate their supplies by product or service. As such, tax returns cannot be used to determine whether the benefit of zero-rating was passed on to consumers.
It should be noted that this VAT measure was introduced is in line with the government’s commitment to support an independent press and the Future of Media Commission’s recommendation on this matter.
Departmental Data
Questions (356, 357)
Conor Sheehan
Question:356. Deputy Conor Sheehan asked the Tánaiste and Minister for Finance the number of homes that were built under section 268 of the Taxes Consolidation Act 1997; the level of oversight, assessment or enforcement of these conditions; and if he will make a statement on the matter. [45690/26]
View answerConor Sheehan
Question:357. Deputy Conor Sheehan asked the Tánaiste and Minister for Finance the number of homes built under section 268 of the Taxes Consolidation Act 1997 that resulted in the creation of licenses to reside rather than tenancies; and if he will make a statement on the matter. [45692/26]
View answerWritten answers
I propose to take Questions Nos. 356 and 357 together.
Following clarification with the Deputy's office, I understand that this question relates to provisions inserted to section 268 of the Taxes Consolidation Act 1997 via section 33 of the Finance Act 2002, which introduced a scheme of capital allowances for expenditure incurred on the construction or refurbishment of residential units associated with a registered nursing home. The qualifying period for expenditure under the scheme was 25 March 2002 to 30 April 2010.
I regret that it was not possible to provide the information sought within the time available. My officials are currently following up on this matter and I will make arrangements to provide the information to the Deputy in line with the Standing Orders of Dáil Éireann.
Question No. 357 answered with Question No. 356.
Departmental Schemes
Questions (358, 359)
Willie O'Dea
Question:358. Deputy Willie O'Dea asked the Tánaiste and Minister for Finance when it is proposed to introduce changes to the disabled drivers scheme; if the proposed changes will improve the scheme for disabled drivers; and if he will make a statement on the matter. [45766/26]
View answerEoin Hayes
Question:359. Deputy Eoin Hayes asked the Tánaiste and Minister for Finance if the disabled driver and passenger scheme will be discontinued when the Department of Transport introduces its new vehicle adaptation scheme; and if he will make a statement on the matter. [45777/26]
View answerWritten answers
I propose to take Questions Nos. 358 and 359 together.
The Deputy should note that my Department and I share concerns that the Disabled Drivers and Disabled Passengers Scheme or DDS is no longer fit-for-purpose and believe it should be replaced with a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual.
Under the aegis of the Department of the Taoiseach, the sub-group convened to progress the National Disability Inclusion Strategy proposals for a needs-based, grant-aided, modern vehicle adaptation supports to replace the DDS, generated a report that was submitted to the Department of the Taoiseach. In considering this report, it has been proposed that a new grant-based scheme be developed and led by the Department of Transport.
The Department of Transport is beginning the development of this new scheme. The existing DDS remains with the Department of Finance and will continue to be reviewed in the context of new scheme developments by the Department of Transport.
As the Deputy will be aware, when this government took office, we committed to a step change in the delivery of supports and services for people with disability and their families.
Budget 2026 is the first step in delivering on this ambition, providing some €3.83 billion to specialist disability services next year, an unprecedented increase of €618 million, or almost 20%.
This funding will be vital in delivering the National Human Rights Strategy for Disabled People. The commitment to develop a new scheme by the Department of Transport, and in this context review the Disabled Drivers and Disabled Passengers Scheme, are strong commitments in this strategy.
Question No. 359 answered with Question No. 358.
Departmental Reviews
Questions (360)
Michael Cahill
Question:360. Deputy Michael Cahill asked the Tánaiste and Minister for Finance if the case of a person (details supplied) will be reviewed; and if he will make a statement on the matter. [45842/26]
View answerWritten answers
Acknowledging the challenging circumstances of bereavement, the Irish income tax code contains favourable provisions relating to the tax treatment of widowed persons.
In the year of bereavement, a widowed person is entitled to the same personal tax credits as a married couple, if they were jointly assessed to tax, and the assessable spouse or nominated civil partner. If they were not the assessable spouse or nominated civil partner, they will receive the increased personal tax credit available to a widowed person or surviving civil partner in the year of death and be assessed on their income from the date of death of their spouse or civil partner until the end of the year.
Following the year of bereavement, widowed persons without dependent children are entitled to the widowed person tax credit of €540 in addition to the standard tax credits for a single person.
Section 463 of the Taxes Consolidation Act (“TCA”) 1997 provides for the widowed parent tax credit. The tax credit is available for widowed parents and surviving civil partners, with a qualifying child or children, following the death of a spouse or a civil partner.
The tax credit, which applies for the five years following the year in which the person is bereaved, is as follows:
• €3,600 in the first year after bereavement,
• €3,150 in the second year after bereavement,
• €2,700 in the third year after bereavement,
• €2,250 in the fourth year after bereavement and
• €1,800 in the fifth year after bereavement.
One widowed parent tax credit may be received, regardless of the number of qualifying children the bereaved person has.
For the purposes of section 463 TCA 1997 a “qualifying child” is a child:
• who is born in the year of assessment, or
• who is under 18 years of age at the beginning of the year of assessment, or
• who, if over 18 at the beginning of the year of assessment:
• is receiving full-time instruction at an educational establishment, or
• is permanently incapacitated by reason of mental or physical infirmity from maintaining himself/herself and had become so incapacitated before the age of 21 or while receiving full-time instruction at an educational establishment.
Guidance on the widowed parent tax credit can be found on Revenue’s Website at the following link: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/children/widowed-parent-tax-credit/index.aspx
Further guidance on the basis of assessments applicable to married persons and civil partners, and the tax treatment applicable in the year of bereavement can be found in Tax and Duty Manual Part 44-01-01, at the following link: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-44/44-01-01.pdf
In addition to the above, section 462B TCA 1997 provides for the single person child carer credit (“SPCCC”), which is available in the years following the year of bereavement where all of the conditions of the provision are met. The SPCCC amounts to €1,900 for the 2026 year of assessment and provides for an increase to the standard rate band of €4,000, bringing the total standard rate band available to €48,000 for the 2026 year of assessment.
For the purposes of the SPCCC a “qualifying child” is as outlined above. The qualifying child must be either the individual’s own child or a child who is in the custody of the individual and who is maintained by that individual at his or her own expense for the whole or greater part of the tax year. In addition, the claimant must not have remarried or entered into a new civil partnership or cohabiting relationship in order to qualify for the SPCCC.
Further guidance on the application of the SPCCC can be found in Tax and Duty Manual Part 15-01-41, at the following link: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-41.pdf
Widowed persons will also benefit from the income tax changes made over successive Budgets by the previous Government. For example, to ease the burden facing average and middle-income earners, the entry point to the higher rate of income tax for all earners has increased substantially by €8,700 or c. 25 per cent over the last four budgets, and the main tax credits have also been increased by €350, or c. 21 per cent, over this period. Furthermore, in line with Government policy of ensuring full-time workers on the minimum wage remain outside the charge to the top rates of USC the ceiling of the 2 per cent USC rate band was increased by €6,898, or 34 per cent, from 2020 to 2025. Budgets 2024 and 2025 also cumulatively reduced the 4.5 per cent rate of USC to 3 per cent.
Social welfare payments and the interaction between such payments are a matter for the Minister for Social Protection, however, it should be noted that social welfare payments are not liable to USC or PRSI.
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.
Tax Collection
Questions (361)
Robert O'Donoghue
Question:361. Deputy Robert O'Donoghue asked the Tánaiste and Minister for Finance the reason a VAT rate of 23% is applied to mooring charges levied by local authorities at harbours and marinas; whether these charges are treated as standard-rated supplies of services under VAT law; the legal basis for the application of VAT to such public authority charges; if he will consider whether an exemption or reduced rate could apply in circumstances where mooring fees are charged by local authorities to small vessel owners, fishermen, or leisure users; and if he will make a statement on the matter. [45853/26]
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The VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law is obliged to comply. In general, the EU VAT Directive (Directive) provides that all goods and services are liable to VAT at the standard rate, unless they are exempt from VAT or fall within the categories of goods and services listed in Annex III of the EU VAT Directive, to which Member States are permitted to apply lower VAT rates subject to certain rules.
The Directive provides that the letting of immovable goods is exempt from VAT. The Directive also provides the landlord with a right to exercise an option to tax lettings, in certain circumstances, and if such option is exercised by the landlord, the applicable rate of VAT is the standard rate of VAT, which in Ireland is currently 23%.
Therefore, the service of mooring of boats/vessels at harbours and marinas – which is a letting of immovable goods – is generally exempt from VAT. However, in accordance with the Directive and as provided for under section 14(2) of the Value-Added Tax Consolidation Act 2010, where a public body (such as a local authority) provides such a letting in competition with private operators, it is considered to be engaged in an economic activity, and thus its supply of the exempt letting comes within the scope of VAT. This means that a local authority supplying the moorings can either provide them as VAT exempt supplies, or can opt to tax the moorings at 23%. Similarly, if a private operator were supplying lettings of immovable goods (including moorings) the same option to tax would also exist for that operator for what would, otherwise, be exempt supplies.
European Union
Questions (362)
Roderic O'Gorman
Question:362. Deputy Roderic O'Gorman asked the Tánaiste and Minister for Finance the Governments position on draft legislation from the European Commission that will require member states to tax electricity at a lower rate than gas, in a bid to cut consumers’ power bills; and if he will make a statement on the matter. [45895/26]
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In light of the EU’s rising energy costs amid volatile fossil fuel markets, the EU issued the Communication AccelerateEU in April 2026, which sets out pillars to accelerate the clean energy transition and strengthen the EU’s energy resilience. The framework is also intended to assist in providing immediate relief to consumers facing increased energy cost and sets out five key areas of action.
The Communication states that the Commission will adopt a legal proposal on network charges and taxation to facilitate the transition to a more electrified, more efficient and more resilient energy system that can drive down electricity bills for all consumers.
Draft legislation from the European Commission in relation to this communication is expected to be published in July 2026 and it will be considered then.