Written Answers Nos. 1-34
15. Deputy Matt Carthy asked the Tánaiste and Minister for Finance the total amount by which he proposes to raise the price of petrol, diesel and home heating oil through increases to the carbon tax, in each year until 2030. [47951/26]
View answerThe carbon tax trajectory is a central pillar of Ireland’s climate policy framework, providing a clear and credible long-term signal to households and industry of the need to transition away from fossil fuels and towards a low-carbon economy.
Legislation was introduced in Finance Act 2020 to provide for annual increases in carbon tax rates up to May 2030. Carbon tax rates on petrol and auto-diesel are legislated to increase at Budget time each year up to 2029 with the increase delayed until 1 May for all other fuels up to 2030.
As the Deputy is aware, in April Government deferred the 1 May 2026 increases until October 14 this year in light of increased fuel prices at that time.
Government also extended the fuel allowance season 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.
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.
For petrol, the carbon tax increase, inclusive of VAT, will total to 8.1 cents per litre over the remainder of the carbon tax trajectory. This gradual increase will be 2.1 cents per litre for each of the next three years, and 1.8 cents per litre in 2029.
For auto-diesel the carbon tax increases over the remainder of the trajectory will total to 9.6 cents per litre. This gradual increase will be 2.5 cents per litre for each of the next three years and 2.1 cents per litre in 2029.
Kerosene is the most commonly used oil for home heating. Inclusive of VAT the carbon tax rate increases on heating kerosene will total to 10.7 cents per litre over the remainder of the carbon tax trajectory. The annual amounts will be 2.2 cents per litre for each of the next four years and 1.9 cents per litre in 2030.
Marked Gas Oil (MGO) is generally used in agriculture and certain other sectors but may also be used for heating. Inclusive of VAT the remaining five carbon tax rate increases on MGO will total to 11.2 cents per litre. The annual increases will be 2.3 cents per litre for each of the next four years and 2 cents per litre in 2030.
In Budget 2026, €1,114 million was allocated to climate action measures and to ensure the most vulnerable are protected from the unintended impacts of the increase. This is an additional €163 million on 2025’s allocation.
This €1,114 million expenditure included retrofitting programmes, social welfare interventions, green & sustainable farming measures, as well as funding for other measures such as investment in EV infrastructure, greenways and peatland rehabilitation.
As the Deputy will be aware, as part of the annual Budget process my Department examines current tax policy and presents budgetary options to the Tax Strategy Group (TSG). The Energy, Environmental and Vehicle Tax TSG paper examines carbon tax policy and will be published in the coming weeks.
16. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance 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. [48251/26]
View answerAs highlighted in my response to a recent question from the Deputy, the Irish Real Estate Fund (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.
17. Deputy Aindrias Moynihan asked the Tánaiste and Minister for Finance the oversight that exists to ensure transparency in a redress and appeals process (details supplied) given concerns raised at the Oireachtas Public Accounts Committee (PAC) on 14 February 2024 regarding the terms of reference, operation and perceived lack of independent scrutiny; and if he will make a statement on the matter. [47990/26]
View answer42. Deputy Aindrias Moynihan asked the Tánaiste and Minister for Finance the engagement his Department has had with the Central Bank following the discussion at the Oireachtas Public Accounts Committee on 14 February 2024 regarding schemes (details supplied); and if he will make a statement on the matter. [47989/26]
View answerI propose to take Questions Nos. 17 and 42 together.
As Minister for Finance, I am prevented from intervening in commercial and operational decisions in any particular bank, even one in which the State previously had a shareholding. Notwithstanding this, officials in my Department contacted AIB and received the following response:
“In 2021, AIB announced a case-by-case review to assess the suitability of the Belfry funds for investors and to determine if a refund may be due to some investors.
AIB communicated its approach and treatment methodology to the Central Bank. Like all financial institutions AIB is subject to regulatory oversight to ensure consumers are protected.
All investors had the right to appeal to an independent appeal panel and were offered a payment towards the cost of obtaining independent professional advice. Similar to the process developed in the Tracker Mortgage Examination, the independent appeal panel was comprised of three individuals who were all independent of the bank and included one qualified solicitor/barrister, one qualified accountant and one member with appropriate experience in dealing with consumer affairs.
Investors can also take their case to the Financial Services and Pensions Ombudsman if they wish to do so".
18. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance the action he is taking on foot of his Department’s advice to introduce new regulations that would ensure social media companies’ vet who can post adverts promoting financial investment schemes on their platforms; and if he will make a statement on the matter. [48195/26]
View answerMy officials have been undertaking a number of actions aimed at reducing the incidence rate of payment fraud, this includes actions aimed towards preventing the use of social media platforms for the advertisement of illegal and fake financial services.
The Payment Services Regulation has recently reached political agreement in the EU and includes several fraud prevention measures such as spending limits, expanded transaction monitoring, fraud information sharing arrangements, anti-fraud education and awareness initiatives, and cross-sector cooperation and data sharing between PSPs, communication service providers, and hosting services for the purpose of detecting and preventing fraud.
Following further technical work and review of the legal texts, formal adoption of the Payment Services Regulation and third Payment Services Directive is expected later this year. Implementation of PSR and PSD3 will be 21 months after adoption.
Crucially, the agreement also includes a requirement for search engines and social media platforms to verify that persons advertising financial services on their platforms have the necessary regulatory authorisation to provide those financial services. This measure is based on a proposal brought forward by Ireland during legislative negotiations.
In addition to fraud prevention measures the Payment Services Regulation will expand Bank liability from only cases of unauthorised payment fraud, to also include cases of impersonation fraud where the victim is manipulated into authenticating a payment by a person impersonating their Bank. This mechanism, if operating effectively, should protect consumers from the harm posed by scam advertisements, as it prevents consumers being exposed to those advertisements in the first place.
The Central Bank also seeks to disrupt frauds and scams by reporting suspect content to internet service providers, including under the Trusted Flagger regime provided for in the Digital Services Act.
In addition to action taken at the EU level, domestically the National Payments Strategy makes several recommendations related to payment fraud. One key outcome has been the establishment of the BPFI Anti-Fraud Forum. The Anti-Fraud Forum fosters cross-sectoral cooperation in fraud prevention between key players such as banks, social media platforms, telecommunications, and regulatory authorities.
19. Deputy Pa Daly asked the Tánaiste and Minister for Finance to provide an update on the September 2026 deadline for the annual approval of the prospectus for Israeli war bonds; and if he will make a statement on the matter. [48315/26]
View answerThe Central Bank are the competent authority when it comes to the issue of prospectus approval and transfer.
The EU Prospectus Regulation provides for the transfer of the approval of a prospectus to the competent authority of another EU Member State; however, the Central Bank of Ireland cannot comment on individual supervisory engagements owing to its professional secrecy obligations.
Furthermore, may I add, that the Central Bank, as the financial regulator, is independent in its functions from the Government as is necessary in any well-functioning democracy.
We as a Government believe that further action is necessary with respect to the EU's relationship with the State of Israel, which is why we are working with others to achieve co-ordinated action at EU level. Ireland will continue to call for concrete EU action in response to egregious Israeli breaches of human rights and democratic principles. This includes a call for a proposal to prohibit EU trade with Israeli settlements, to suspend the EU-Israel Association Agreement, or at a minimum to suspend the trade elements of the Agreement as previously proposed by the President of the European Commission. It is expected that it is expected that the European Commission will bring forward options at the Foreign Affairs Council on 13 July, including on EU trade with Israeli settlements.
I would also like to take the opportunity to highlight that I directed senior officials in my Department to engage with the EU Commission on this matter. Department officials subsequently liaised with their counterparts in the European Commission, drawing attention to the work of the Oireachtas, and in particular to the Joint Oireachtas Committee’s recommendation that the Prospectus Regulation be amended. This engagement reflected my view that the Commission should have regard to the report and its findings.
Officials outlined recent developments in Ireland and sought the views of the Commission on the possibility of a legislative initiative by EU Commission to address the Oireachtas Committee's issues.
In their response, the EU Commission indicated that they currently have no plans for a review of the Prospectus Regulation. I have also raised the JOC report and Government’s views with Commissioner Albuquerque, in person and by letter.
20. Deputy Matt Carthy asked the Tánaiste and Minister for Finance the amount raised through the carbon tax in each year 2019 to 2025; and the amount projected to be raised in each of the years 2026 to 2030. [47950/26]
View answerFull detail with annual amounts in tabular form will be sent to the Deputy directly.
I am further advised by Revenue that a breakdown of carbon tax receipts, across all fuel and energy types, for the years 2019 to 2025 and previous years is published on the Revenue website.
The Deputy has also requested the amount projected to be raised through the carbon tax in each of the years up until 2030.
In July 2025, my Department published updated Carbon Tax Projected Exchequer Revenue Estimates (2013-2030) as part of the Tax Strategy Group paper on Energy, Environmental and Vehicle Tax. This paper is available on my Department's website.
An updated version of these estimates will be released in due course as part of the Budget 2027 Tax Strategy Group (TSG) papers. The TSG paper includes an examination of the current policy approach of the carbon tax and future policy.
Revenues raised from the carbon tax are allocated for expenditure on just transition and climate positive measures, such as funding social welfare measures, agri-environmental schemes and retrofitting programmes. The net impact of the combined measures funded by the Carbon Tax has consistently been shown to be progressive.
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.
The Government decision to defer the Carbon Tax increase on home heating fuels and MGO until October was taken in light of the extraordinary circumstances and increased fuel prices created by the conflict in the Middle East. The Government remains committed to our climate action policy which includes the carbon tax as a price signalling tool but has taken this decision to alleviate fuel price pressures being faced by households and businesses at the peak of energy price inflation earlier this year.
Government also extended the fuel allowance season 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.
21. Deputy Naoise Ó Muirí asked the Tánaiste and Minister for Finance if he will outline his recent discussions about economic resilience and energy security with EU Finance Ministers, in the context of Ireland’s EU Presidency; and if he will make a statement on the matter. [48188/26]
View answerI continue to engage actively with my EU Finance Minister colleagues on issues relating to economic resilience and energy security. The most recent discussion took place at Eurogroup earlier this month on 11th June.
In the context of the ongoing conflict in the Middle East, recent discussions among Finance Ministers have underlined why Europe must accelerate the deployment of renewables across all sectors, continue to invest in our grid infrastructure and reduce exposure to future price shocks. Ministers have also discussed recent initiatives at EU level, including the European Commission’s AccelerateEU package, which aims to address energy affordability pressures and strengthen Europe’s energy resilience.
There is a strong focus at EU level on accelerating the deployment of clean energy, including wind, solar and emerging technologies, to deliver decarbonised and affordable power. Increasing the availability of renewable and clean energy reduces exposure to volatile fossil fuel markets and strengthens Europe’s strategic autonomy, while also supporting affordability for households and businesses.
During our upcoming EU Presidency, Ireland will engage with Member States on the EU’s energy agenda and support progress on initiatives aimed at strengthening security of supply, enhancing infrastructure resilience and supporting the transition to a more efficient and electrified energy system.
22. Deputy Thomas Gould asked the Tánaiste and Minister for Finance whether he intends to introduce a tax on private jets. [43418/26]
View answerThe supply of aircraft in the State is subject to Value Added Tax (VAT), and the fuel used in aircraft is also subject to VAT along with Mineral Oil Tax (MOT).
The VAT treatment of goods and services is subject to EU VAT law, with which Irish VAT law is obliged to comply. In accordance with the EU VAT Directive, the supply of aircraft (including private jets) is generally subject to the standard rate of VAT (which in Ireland is currently 23 per cent), but the zero rate applies where the aircraft is used or to be used by a transport undertaking operating for reward chiefly on international routes (e.g. an international airline). In general, where a person leases a private jet, that lease is liable to VAT at the standard rate.
Under the VAT Directive, various VAT rates apply to aviation fuels. The zero rate applies to fuels for aircraft used by international airlines. The standard rate of VAT applies to fuels supplied for other purposes or customers, except in the case of aviation kerosene/jet fuel where Ireland retains its historic application of the reduced rate of VAT (currently 13.5 per cent).
Ireland’s excise duty treatment of aviation fuel is governed by European Union law as set out in the Energy Tax Directive. Under national law, liquid fuels are subject to excise duty in the form of Mineral Oil Tax.
Jet fuel, also referred to as jet kerosene, is a heavy oil that is the most commonly used aviation fuel. It currently attracts a Mineral Oil Tax rate of €371.85 per 1,000 litres. Aviation gasoline, which is described as a light oil for Mineral Oil Tax purposes, is less commonly used in aviation and currently attracts a rate of €502.88 per 1,000 litres.
In line with the Energy Tax Directive, jet fuel used for commercial air navigation is fully exempted from Mineral Oil Tax. Aviation gasoline used for commercial air navigation is partially relieved and is currently subject to an effective rate of €270.61 per 1,000 litres. Both the full Mineral Oil Tax exemption for jet fuel, and the partial Mineral Oil Tax exemption for aviation gasoline, apply to fuel used for domestic, intra-community and international flights.
The concept of a “private jet” is not encompassed in Mineral Oil Tax law, nor in the Energy Tax Directive, and the Mineral Oil Tax treatment of fuel used in an aircraft is not determined by the aircraft ownership. The applicable Mineral Oil Tax rate for fuel used in any aircraft, including privately owned, is determined by the fuel type and whether the aircraft is being used for commercial or private pleasure purposes.
The Energy Tax Directive provides that fuel used for non-commercial air navigation, or private pleasure flying, is mandatorily taxed.
For the purposes of Mineral Oil Tax, commercial air navigation is distinguished from private pleasure flying by reference to definitions set out in law. Commercial use of an aircraft includes the carriage of passengers or goods, the supply of services for consideration, and for the purposes of public authorities. Mineral Oil Tax applies in full to fuel used for private pleasure flying, which includes the use of an aircraft by its owner, or the natural or legal person who enjoys its use either through hire or through any other means, for other than commercial purposes.
23. Deputy Willie O'Dea asked the Tánaiste and Minister for Finance for an update on the Credit Union Sector Strategy project, following its recent launch; and if he will make a statement on the matter. [48369/26]
View answerThe Programme for Government includes a commitment to draft a five-year strategy for the credit union sector. 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 documents have been approved and will be published on the Department of Finance website shortly.
The Project Governance Board held its second meeting on the 18th of June, where members discussed the development of a sector-wide survey for credit unions. This survey will provide an opportunity for credit unions to set out their strategic priorities at an early stage and to help shape the direction of the overall strategy.
Members also considered the application process to enable sector representatives to participate in the Strategy Committee and associated strategy workshops. These initiatives will ensure that the sector’s voice is central to the development of the strategy. Both processes are significantly advanced and are expected to open for engagement in early July.
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 10-month timeframe. 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.
24. Deputy Darren O'Rourke asked the Tánaiste and Minister for Finance his plans to introduce a derelict property tax; and if he will make a statement on the matter. [46795/26]
View answerIn Budget 2026, it was announced that a new Derelict Property Tax (DPT) would be introduced. The aim of this tax is to encourage the activation of derelict properties and sites. It will replace the Derelict Sites Levy and will be collected by the Revenue Commissioners.
I intend to legislate for the DPT as part of Finance Bill 2026. This is dependent on engagement from stakeholders and will also be influenced by advice received from the Attorney General. This timeline is necessary to allow local authorities to prepare and publish a preliminary register of derelict properties in 2027, with the tax coming into effect as quickly as possible thereafter.
Officials in my Department continue to engage with officials in the Department of Housing, Local Government and Heritage and in Revenue on the design of this tax. A key issue is that the tax must apply in a consistent manner to all residential properties and sites that are derelict. Therefore, a lead-in time will be required for local authorities to identify all the relevant derelict properties in their areas for inclusion on a register in a consistent manner.
The tax will apply in its first year to towns and cities with populations of four thousand or more. In its second year, it will be extended to towns with populations over two thousand.
Once the DPT is operational, I am confident that many owners of derelict properties will be incentivised to take action to bring these homes back into use and ultimately contribute to our housing stock. The behavioural effect of the tax will also contribute to regeneration and development, breathing new life into our villages, towns and cities.
Working to end dereliction and vacancy is a key priority in the Government's new housing plan, Delivering Homes, Building Communities.
Under the Plan, measures will be introduced such a new Above the Shop grant and an Expert Advice Grant to support bringing vacant upper floors into use as homes. It introduces an expanded Living City Initiative and greater use of CPO powers by local authorities to tackle long term vacancy and dereliction.
These measures build on the progress that has been made to date returning vacant and derelict properties back into use. Some key areas of progress in the past year include:
• Successful delivery of the Vacant Property Refurbishment Grant, through the Croí Cónaithe Towns Fund.
• The €150 million Urban Regeneration and Development Fund which has been made available for local authorities to acquire vacant or derelict properties and sites for re-use or sale.
These and other initiatives outlined in the Vacant Homes Action Plan Progress Report are yielding significant results. Across the country, cities and towns are being revitalised and vacancy levels are declining as more and more empty properties are being brought back into use as homes.
25. Deputy Mairéad Farrell asked the Tánaiste and Minister for Finance the value of the ISIF’s holdings in a company (details supplied); and if he will make a statement on the matter. [48317/26]
View answerThe National Treasury Management Agency (NTMA) has informed me that the Ireland Strategic Investment Fund (ISIF) publishes details of individual investments in their Annual Report each year. The most recent annual report is for the year ended December 2024 and reported that ISIF had a holding valued at €950,000 in Palantir Technologies.
The Ireland Strategic Investment Fund portfolio is constructed within the legislative framework set for it by the Oireachtas. The NTMA (Amendment) Act 2014, sets out ISIF’s mandate with regard to the investment of the assets of the Fund other than directed investments.
Under the Act the Agency has responsibility for determining, monitoring and keeping under review an investment strategy for the Fund (other than directed investments) in accordance with the investment policy for the Fund.
Under the Act, the NTMA, as controller and manager of the ISIF, is also required to consult with the Ministers for Finance and the Minister for Public Expenditure, NDP Delivery and Reform in determining and reviewing ISIF’s investment strategy.
Following the development of its draft investment strategy and after consultation with Ministers, the NTMA adopted a Sustainability & Responsible Investment Strategy (S&RIS) in 2020. This was updated in 2023 and reflects a commitment to be a responsible investor as steward of public assets by protecting and enhancing both the long-term value of the ISIF. Along with the reputation of the NTMA in how it delivers its mandate, as manager and controller of the ISIF.
In this context ISIF operates an exclusion policy with exclusion used on a limited basis, reflecting exclusions mandated by legislation (such as the Fossil Fuel Divestment Act 2018 or the Cluster Munitions and Anti-Personnel Mines Act 2008) and, inter alia, exclusions on a non-statutory basis on sustainable investment grounds including Tobacco, Nuclear Weapons and certain companies on the UN Database.
Specifically as regards the UN Database, ISIF has divested from six companies, all of which remain on the UN Database as last updated in September 2025, with a total value at the time of the divestment decision of approximately €2.95m. The six companies were Bank Hapoalim BM; Bank Leumi-le Israel BM; Israel Discount Bank Ltd; Mizrahi Tefahot Bank Ltd; First International Bank Ltd and Rami Levi Chain Stores Ltd.
26. Deputy Barry Ward asked the Tánaiste and Minister for Finance the measures he is considering in Budget 2027 to support first-time buyers in high-cost areas; and if he will make a statement on the matter. [48265/26]
View answerThe primary tax-based support for first time buyers is the Help to Buy (HTB) incentive. It is a tax-based scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. It also aims to encourage additional supply of new houses by supporting demand.
HTB provides a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.
The level of support available to first time buyers under the HTB scheme, is whichever is the lesser of:
• €30,000; or
• 10 per cent of the purchase price of the new property; or
• the amount of Income Tax and DIRT paid in the four years before application for the relief.
Based on the latest available data (31 May 2026), the scheme has supported over 66,000 individuals or couples to buy or build their own home.
The Programme for Government commits to the retention and revision of the HTB scheme.
For a property to qualify for the HTB scheme, it must be new or converted for use as a dwelling, having not previously been used as a dwelling. Additionally, the purchase value/approved valuation of the property must not exceed €500,000.
The estimated total value of approved Help to Buy claims is in the order of €1.5 billion as of 31 May 2026.
In this regard, and as the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, having regard to the sound management of the public finances and the impact any proposed changes would have on the wider housing market. It is a long-standing practice of the Minister for Finance not to comment on matters which may form part of the forthcoming Budget and Finance Bill processes.
27. Deputy Cormac Devlin asked the Tánaiste and Minister for Finance for an update on the Ireland for Finance strategy; the timeline for its launch; and if he will make a statement on the matter. [48367/26]
View answerThe Ireland for Finance strategy is a whole-of-Government strategy for the development of the international financial services sector in Ireland. The current strategy was originally published in 2019, with an update published in October 2022.
The vision set out in the strategy was to grow and expand Ireland’s position as a global financial services hub. The sector now has approximately 63,000 employed, a growth of 80% since 2015.
In line with Programme for Government commitments, the Department of Finance is preparing a new Ireland for Finance Strategy for the period 2026-2030.
The public consultation period for the new Ireland for Finance strategy concluded in September with 57 submissions received. This has been supplemented by significant input from a wide range of bilateral, national and international stakeholder engagements, including the standing quarterly Ireland for Finance Joint Committee forum.
Analysis of the submissions, stakeholder engagement and wider research is informing the development of a new strategy. The strategy will introduce targeted policy measures which will look to build on our position as a leading global financial centre. While the new Ireland for Finance strategy is still under development, ambitions of the strategy will be for Ireland to:
• Remain a competitive and trusted global international financial services centre;
• Have capacity to scale and attract expertise to enable economic growth in EU;
• Leverage technological capability to support digital transformation; and
• Develop and deepen links with domestic businesses and citizens.
Officials are now in the process of finalising the new Ireland for Finance strategy. Once approved by Government, I anticipate publication of the strategy to occur over the summer months.
28. Deputy Tony McCormack asked the Tánaiste and Minister for Finance for an update on the Action Plan for Insurance Reform launched last July; and if he will make a statement on the matter. [48366/26]
View answerThe Government is progressing the actions set out in the Action Plan for Insurance Reform 2025–2029 to further strengthen the insurance sector in Ireland. The Action Plan itself sets out a number of priority actions, focused on areas where the greatest impact on transparency, affordability and availability of insurance can be achieved.
As part of this, the Motor Transparency Code was introduced in March 2026, and implementation is currently being carried out on a phased basis. Substantial progress has also been made on the “Right to be Forgotten” legislation and it is my intention that this legislation will be enacted in advance of the summer recess.
In terms of other notable progress, the National Claims Information Database (NCID) has implemented faster data releases, and the Central Bank of Ireland is also progressing further actions to enhance the utilisation of NCID data. Officials from my Department have also recently met with the Garda Insurance Fraud Co-ordination Office (GIFCO) and have shared the insights gained with industry stakeholders and will continue to engage on this matter.
Work has also progressed on the Judicial Council (Amendment) Bill 2026, which will bring greater consistency and clarity to the review process for personal injuries guidelines. In addition, the Injuries Resolution Board (IRB) delivered its first benchmarking report “Review of Compensation for Minor Soft-tissue Injuries in Ireland and the UK’, which showed the need for further reform to ensure Irish award levels are in line with other jurisdictions.
In relation to flood insurance, I am in the process of establishing a Flood Insurance Protection Gap Working Group to drive forward potential solutions to the flood insurance protection gap, which will support homeowners who are having difficulty accessing flood insurance.
The Government is firmly committed to the implementation of the reforms set out in the Programme for Government and the 2025 Action Plan for Insurance Reform. These measures are intended to support the development of a fairer, more sustainable, and more competitive insurance market, delivering tangible improvements in cost, choice, and access for all consumers.
29. Deputy Peter 'Chap' Cleere asked the Tánaiste and Minister for Finance his plans for tax relief for sports or gym memberships; and if he will make a statement on the matter. [48379/26]
View answerAs the Deputy will be aware, the Programme for Government, Securing Ireland’s Future, contains a commitment to “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.
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.
30. Deputy Shay Brennan asked the Tánaiste and Minister for Finance his response to recent assertions that Enhanced Reporting Requirements (ERR), introduced in January 2024, are causing small businesses and restaurants to scale back modest staff gestures such as retirement lunches and gifts for special occasions due to concerns around compliance obligations; and if he will make a statement on the matter. [48327/26]
View answerAs the Deputy is likely to be aware, section 897C of the Taxes Consolidation Act 1997 requires employers to report details of certain expenses or benefits made to employees and directors. These requirements are referred to as the enhanced reporting requirements (ERR). The detailed reporting of these expenses or benefits commenced on 1 January 2024.
The reportable benefits relevant to the ERR are:
• the remote working daily allowance of €3.20,
• the payment of travel and subsistence expenses, and,
• the small benefit exemption.
When the legislation was introduced in Finance Act 2022, it was subject to a Commencement Order to allow sufficient time for the necessary implementation stakeholder consultation process. This legislation now provides for the ERR and requires that all benefits or payments falling within the three categories above are reported to Revenue on or before the payment is made to the employee.
While employers were not previously required to report the details of individual non-taxable benefits/expense payments/perquisites, there was always certain conditionality to be satisfied in order for an employer to provide a tax-free benefit/expense payment/perquisite. The employer was therefore required to have sufficient controls in place as well as comprehensive supporting documentation and records to substantiate the preferential tax treatment. This detailed information would have been readily available to supply to Revenue upon request.
The ongoing reporting mechanism has been designed so that once verified and approved as a non-taxable payment, the employer now simultaneously reports the details of that payment to Revenue through ERR while processing the payment.
ERR enhances Revenue’s compliance framework and it is also an important source of data, providing valuable information to assist my Department for policy making considerations and tax expenditure reviews. There has been very high compliance with ERR. Over 80 per cent of businesses are availing of the integrated reporting that has been built into software systems. This makes the process of reporting as integrated and as seamless as possible.
I acknowledge that various stakeholders have stated that the requirements have increased administrative requirements for taxpayers, in particular for SMEs. This feedback is important and I have asked my officials to consider this matter in advance of this year's Budget and Finance Bill.
31. Deputy Willie O'Dea asked the Tánaiste and Minister for Finance for a report on his meetings with stakeholders on the new Ireland for Finance strategy; and if he will make a statement on the matter. [48370/26]
View answerThe development of the new Ireland for Finance strategy has been informed by an extensive consultation process.
The Department of Finance launched the public consultation process in 2025. The consultation period ran from July to September 2025 receiving 57 submissions from a cross section of stakeholders in Ireland's financial services ecosystem including industry bodies, financial services firms, professional services firms and the skills and education sector.
Throughout the consultation period, 11 Ministerial roundtables were held with industry bodies from banking, financial services, fintech, insurance, investments and aircraft leasing associations. International stakeholder engagement occurred during a number of foreign visits by Minister of State Troy.
Officials are now in the process of finalising the new Ireland for Finance strategy. Once approved by Government, I anticipate publication of the strategy to occur over the summer months.
32. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance the steps he is taking to ensure that the Central Bank is acting in accordance with international law in relation to its role as the home state for the Israeli bond programme; and if he will make a statement on the matter. [48194/26]
View answerAs the Deputy will be aware, the Central Bank are the competent authority when it comes to the issue of prospectus approval. They have informed me that the Central Bank continues "to keep under review its compliance with the applicable international, legal and regulatory frameworks in relation to its mandates and engagements with the Israeli bond prospectuses."
Furthermore, may I add, that the Central Bank, as the financial regulator, is independent in its functions from the Government as is necessary in any well-functioning democracy.
As the Governor of the Central Bank made clear in a reply to a letter from the Oireachtas Finance Committee on 24 November 2025, where he stated:
“The Central Bank is established by statute to fulfil legal responsibilities and obligations including in relation to the Prospectus Regulation. In carrying out these responsibilities we are at all times required to assess and understand the nature of our legal obligations and responsibilities. We do this on the basis of robust analysis relying on the legal expertise available to us. This takes the form of both internal legal and subject matter expertise and, where necessary and appropriate, of access to external legal advice.”
We believe that further action is necessary with respect to the EU's relationship with the state of Israel, which is why we are working with others to achieve co-ordinated action at EU level. Ireland will continue to call for concrete EU action in response to egregious Israeli breaches of human rights and democratic principles. This includes a call for a proposal to prohibit EU trade with Israeli settlements, to suspend the EU-Israel Association Agreement, or at a minimum to suspend the trade elements of the Agreement as previously proposed by the President of the European Commission. It is expected that it is expected that the European Commission will bring forward options at the Foreign Affairs Council on 13 July, including on EU trade with Israeli settlements.
I would also like to take the opportunity to highlight that I directed senior officials in my Department to engage with the EU Commission on this matter. Department officials subsequently liaised with their counterparts in the European Commission, drawing attention to the work of the Oireachtas, and in particular to the Joint Oireachtas Committee’s recommendation that the Prospectus Regulation be amended. This engagement reflected my view that the Commission should have regard to the report and its findings.
Officials outlined recent developments in Ireland and sought the views of the Commission on the possibility of a legislative initiative by EU Commission to address the Oireachtas Committee's issues.
In their response, the EU Commission indicated that they currently have no plans for a review of the Prospectus Regulation. I have also raised the JOC report and Government’s views with Commissioner Albuquerque, in person and by letter.
33. Deputy Ruairí Ó Murchú asked the Tánaiste and Minister for Finance to provide an update on the creation of the new planned personal investment account regime; and if he will make a statement on the matter. [48133/26]
View answerIreland still does not have a sufficiently diversified savings and investment culture. Too much of people’s hard-earned savings remains in low-yield deposits, where inflation can erode value over time. Investment in capital markets can offer households another path to long-term financial wellbeing.
The tax treatment of retail investments was considered as part of a broader review into the funds and asset management sector in Ireland, which culminated in the ‘Funds Sector 2030’ report published in October 2024.
In recognition of the importance of encouraging retail investment, Budget 2026 provided for a reduction in the rate of taxation on returns from Irish and equivalent investment funds and Irish and certain foreign life assurance policies from 41% to 38% which took effect from 1 January 2026.
Budget 2026 also included a commitment to publish a roadmap in 2026, setting out the intended approach to simplify and adapt the tax framework to encourage retail investment.
At the Savings and Investment Forum on 31 March, I announced the Government’s intention to introduce the legislative framework for an Investment Account in 2026. We want to make investing simpler, clearer, and more accessible for ordinary people, and help their hard-earned money work harder for them.
The aim is to legislate for the framework in 2026 and to allow accounts to be offered from 2027. The Government’s view that the account should be simple, accessible, tax efficient, easy to administer, transparent on fees and portable across borders where possible.
When designing the model that best fits the Irish economy and the needs of Irish households, the views of relevant experts are being considered as well as learning from best international practices.
Officials in my Department are currently developing policy options regarding the investment account framework which will form part of the deliberations for Budget 2027 over the coming months.
34. Deputy Colm Burke asked the Tánaiste and Minister for Finance if he will consider removing the eight-year deemed disposal rule on investments; and if he will make a statement on the matter. [48084/26]
View answer58. Deputy Aisling Dempsey asked the Tánaiste and Minister for Finance if the removal of the deemed disposal rule for certain classes of investments will be considered for Budget 2027; and if he will make a statement on the matter. [48382/26]
View answer60. Deputy Erin McGreehan asked the Tánaiste and Minister for Finance for an update on plans for reform of deemed disposal tax; and if he will make a statement on the matter. [48385/26]
View answerI propose to take Questions Nos. 34, 58 and 60 together.
The deemed disposal rule is an anti-avoidance measure, introduced in Finance Bill 2006 to prevent the indefinite roll-up of income and gains, and the associated loss of tax to the Exchequer, under the gross roll-up regime.
Under the deemed disposal rule, tax is levied eight years after an investment is made, and every subsequent eight years, regardless of whether a disposal has in fact occurred. The tax is levied on any gain in the value of the investment from the date of acquisition to the date of the deemed disposal. 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 rule, but as articulated in the Funds Sector 2030 review (Funds Review), any changes to this rule requires 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, taking account of potential Exchequer impacts,?is required.
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 on the taxation of retail investment, setting out an approach to simplify and adapt the tax framework to further support retail investment, while retaining necessary and important anti-avoidance protections, in a proportionate manner. The roadmap will take the Commissions Savings and Investment Account recommendation, and the Funds Review, including the issue of deemed disposal, into consideration.
As I announced at the first annual Savings and Investment Forum, on 31 March, 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 individuals to grow their savings more efficiently. My officials are continuing to engage with experts and stakeholders as work is progressing on the development of the account, taking on board the range of ideas on the design of an effective investment account in Ireland, that best fits the Irish economy and the needs of Irish households.
The roadmap is expected to be published in summer 2026.
