Written Answers Nos. 275-294
277. Deputy Brendan Smith asked the Tánaiste and Minister for Finance his views on widely expressed concerns of long-term holders of prize bonds in relation to the inadequate current variable rate of interest and also taking into account that the holders of such bonds have invested long term in such State schemes with benefits to this State [67724/26]
View answerThe National Treasury Management Agency (NTMA) has informed me that Retail savings, including Prize Bonds, are an important element of the NTMA’s funding strategy.
In setting rates on Ireland State Savings, including Prize Bonds, the NTMA seeks a balance between providing customers with a safe and competitive savings option and providing long-term value to the Exchequer in terms of managing the cost of borrowing.
The rate set for the Prize Bonds prize fund also reflects the fact that, after an initial holding period of three months, Prize Bonds allow encashment and the return of the person’s investment with 7 days’ notice.
The NTMA increased the variable rate used to calculate the Prize Bond fund from 1% to 1.5% with effect from 1st September 2026. The NTMA also changed the prize structure with effect from 1st September 2026 as follows:
• The weekly draw will have more prizes and higher-value prizes. Based on the current level of Prize Bonds outstanding, 10,000 prizes are expected to be awarded every week.
• A top monthly prize of €500,000 remains in the last weekly draw of every calendar month.
• The top prize in every weekly draw is being doubled from €50,000 to €100,000. Each week there will be 50 prizes of €1,000, in place of the current 20 prizes of €1,000 and 20 prizes of €500.
• The remaining weekly prize fund will be awarded in €100 prizes, which is an increase on the current prize of €75.
That NTMA has also informed me that over 450,000 prizes were awarded in 2025.
278. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the four scheduled stages by which the temporary excise reductions on petrol and diesel are to be restored from 1 November 2026 to the end of February 2027, including the effective date and the cent per litre increase at each stage for both petrol and diesel; the current cent per litre value of the temporary reduction remaining in place for each fuel, in tabular form; and if he will make a statement on the matter. [67943/26]
View answerThe Government has temporarily reduced the Mineral Oil Tax applying to petrol, auto diesel and Marked Gas Oil (MGO). Inclusive of the reduction in the NORA levy, these changes save consumers and businesses:
• 27 cent per litre of petrol,
• 32 cent per litre of auto diesel, and
• 7.4 cent per litre of MGO.
These temporary reductions were due to expire on 31 August but were extended in full until 31 October with a phased restoration to pre-reduction levels taking place between 1 November and 28 February 2027.
To avoid any cliff edge removal of supports, the Government announced a pathway to gradually restore excise duty rates to pre-reduction levels, as follows:
|
|
Petrol |
Diesel |
MGO |
|
1 November |
5c increase |
7c increase |
2.7c increase |
|
1 December |
5c increase |
7c increase |
|
|
31st January |
7c increase |
8c increase |
2.7c increase |
|
28th February |
8c increase |
8c increase |
|
The temporary excise reduction remaining on each of these fuel products over the course of the restoration will be as follows:
|
|
Petrol |
Diesel |
MGO |
|
1 November |
20c remaining |
23c remaining |
2.7c remaining |
|
1 December |
15c remaining |
16c remaining |
2.7c remaining |
|
31st January |
8c remaining |
8c remaining |
0c remaining |
|
28th February |
0c remaining |
0c remaining |
0c remaining |
279. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if, in advance of any change to the rate of the e-liquid products tax in budget 2027, his Department has assessed the effect of a rate increase on the size of the illicit and cross-border market, having regard to the differential with the rate applying in Northern Ireland; and if he will make a statement on the matter. [67930/26]
View answerAs the Deputy will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
280. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the projected full year yield of the carbon tax increase to €78.50 per tonne scheduled for 2027; the estimated cost to the Exchequer of deferring that increase for a further year; the estimated per litre effect on petrol and on diesel of that increase; and if he will make a statement on the matter. [67949/26]
View answerI am advised by Revenue that the projected yield from the increase to a charge of €78.50 per tonne of carbon dioxide emitted and, therefore, the estimated cost of deferring this increase for a further year, is shown in the following table. The Deputy should note that under the current schedule propellant fuels, including petrol and diesel, will increase to the €78.50 per tonne rate with effect from the 14 October 2026, while other fuels subject to the Carbon Charge will increase to this rate from the 01 May 2027.
|
Estimated Yield/Cost |
Carbon Charge €m |
VAT €m |
Total €m |
|
First Year 2026 |
10 |
1 |
11 |
|
2027 |
105 |
11 |
116 |
|
Full Year |
139 |
13 |
152 |
Note: figures rounded to millions.
I am further advised by Revenue that the per litre effect on petrol and on diesel of the increase is shown in the following table.
|
Fuel Type |
Mineral Oil Tax Increase Per Litre |
VAT inclusive Increase per litre |
|
Petrol |
€0.017 |
€0.021 |
|
Diesel |
€0.020 |
€0.025 |
281. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the current status of the carbon tax increase on home heating fuels that was deferred from 1 May 2026 to 14 October 2026; the average effect of that increase on a 1,000 litre fill of home heating oil; whether a further deferral is under consideration in the context of budget 2027; and if he will make a statement on the matter. [67954/26]
View answerEarlier this year, in response to increased fuel prices due to the conflict in the Middle East, Government deferred the planned 1 May carbon tax increase on home heating and other relevant fuels until 14 October. This deferral, in conjunction with the other supports, helps mitigate fuel costs for households and businesses.
It should be noted that carbon tax revenues are recycled to lessen Ireland's dependence on fossil fuels, with successive annual budgets providing additional funds for targeted social protection payments, residential and energy efficiency measures, as well as funding to encourage green farming practices.
As of Budget 2026, the Government has allocated over €4.2 billion in carbon tax revenue for these purposes since 2020. ESRI analysis consistently shows the lower income deciles are better off as a result of the social protection measures funded by carbon tax.
The deferred 1 May Carbon Tax increase legislated to take place on 14 October would add 1.9 cents to a litre of kerosene, or approximately 2.2 cents on a VAT inclusive basis. For a 1,000 litre delivery of home heating oil, this equates to €21.56 on a VAT inclusive basis.
As the Deputy will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on the specifics of any tax matters that might be the subject of Budget decisions.
282. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the estimated additional VAT accruing to the Exchequer for each 10 cent increase in the average retail price of a litre of petrol and diesel; the total VAT collected on petrol and diesel in each of the years 2023 to 2025 and to date in 2026; and if he will make a statement on the matter. [67946/26]
View answerI 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 the VAT yield on petrol and diesel using taxpayer information alone.
However, using Revenue and third-party data sources, a tentative estimate of the amount of VAT collected in the years 2023-2025 and to date in 2026 is presented in the table below:
|
- |
VAT on Petrol (€m) |
VAT on Diesel (€m) |
|
2023 |
318.6 |
370.4 |
|
2024 |
349.2 |
373.3 |
|
2025 |
366.0 |
361.9 |
|
2026 YTD (to end July, latest month available) |
231.8 |
231.0 |
Based on the current national average price and assuming that petrol and diesel volumes are at the levels observed over the preceding twelve months (August 2025 – July 2026), an estimate of the additional VAT accruing to the Exchequer resulting from a 10-cent price increase in a year is estimated to be in the region of €22m for petrol and €21m for diesel.
As the Deputy will be aware, schemes such as the VAT deduction scheme, the double income tax relief scheme and the Diesel Rebate Scheme mean that a significant portion of revenue raised from taxation of fuels is repaid to economic operators who are availing of these schemes.
283. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the rate of VAT currently applying to home heating oil (kerosene); the estimated full year cost of reducing that rate from 13.5 per cent to 9 per cent, in line with the temporary rate applied to domestic gas and electricity; whether any such reduction is under consideration; and if he will make a statement on the matter. [67952/26]
View answer289. Deputy Ged Nash asked the Tánaiste and Minister for Finance the projected cost of reducing the VAT rate on home heating oil to 9%, from the current 13.5% rate for 2027; and the additional projected cost of introducing it from 6 October 2026. [67877/26]
View answerI propose to take Questions Nos. 283 and 289 together.
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 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.
Home heating oil is not included in the categories of goods and services on which the EU Directive allows a lower rate of VAT. However, the Directive allows that a Member State may retain certain long-standing VAT arrangements that they had in place, subject to strict conditions including that the terms of the historic arrangement cannot be extended. On this basis, Ireland is permitted to retain its long-standing application of its reduced VAT rate – which is currently 13.5% – to the supply of hydrocarbon oil of a kind used for domestic or industrial heating fuel.
It is not possible to apply a 9% VAT rate to home heating oil under the VAT Directive.
284. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if his Department received or considered any independent analysis, including analysis prepared by an organisation (details supplied), on the likely effect of the e-liquid products tax on the illicit market and on tax leakage prior to commencement; and if his Department will publish any such assessment held. [67919/26]
View answer285. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if, prior to the introduction of the E-liquid Products Tax, his Department or the Revenue Commissioners assessed a tax-stamp and track-and-trace model as an alternative to the self-declaration first-supply model; the projected tax leakage under each option considered; and the reasons a self-declaration model was chosen. [67917/26]
View answerI propose to take Questions Nos. 284 and 285 together.
Ireland currently operates a tax stamp system in accordance with section 73 of the Finance Act 2005, as amended, in respect of two specified tobacco products: cigarettes and roll-your-own tobacco. The taxation of tobacco products generally (including cigarettes and roll-your-own) is harmonised across the EU, which makes the products subject to the strict EU-wide control and movement regime. The Excise Movement and Control System (EMCS) is an EU-wide system, administered by national tax authorities, under which the movement of excisable products is tightly controlled through authorised tax warehouses with duty suspension arrangements. Excise liability arises when such products are released for consumption. The operation of Ireland’s tax stamp for cigarettes and roll-your-own tobacco is closely linked to the operation of EMCS for these products.
At present, there is no EU-wide harmonised taxing regime for e-liquid products. Therefore, many Member States, including Ireland, have introduced their own national excise on these products for health policy reasons. As a non-harmonised national excise, Ireland’s operation of E-Liquid Products Tax (EPT) has to be compatible with EU Single Market rules. Consequently, e-liquid products entering the State from other EU Member States or from Northern Ireland cannot be subject to the type of cross-border movement controls that are integral to the regime for the existing EU-harmonised excises, such as tobacco tax.
During the design of EPT, consideration was given by my Department and by Revenue to the appropriate charging point for the tax. Approaches to other Irish excises and similar taxes in other jurisdictions were considered. It was concluded that charging EPT at the point of first supply in the State is the most appropriate approach.
An alternative model of a ‘released for consumption’ approach to charging EPT would require the development and operation of a complex national (non-EMCS) system of tax warehousing and control. Such a system could only have very limited effectiveness in a non-harmonised regime – given that the system could only operate on a national basis and without recourse to cross-border controls – and the cost of setting up and operating such a system could not be justified given such limitations on its potential effectiveness. In these circumstances, the introduction of a tax stamp would not be a useful tool in securing the collection of EPT.
The Deputy will be aware that in July 2025, the EU Commission published its proposed recast of the Tobacco Taxation Directive. Among other changes, the proposal involves introducing harmonised taxation of e-liquid products across the EU and bringing these products within the scope of EMCS, which will ensure the movements of e-liquid products into and within the Union will be recorded and monitored.
The Deputy has also referred to the illicit vape market. He may wish to note that, whereas my Department and Revenue deal with taxation matters, policy and legislation regarding e-liquid and e-cigarette products generally, including regulation of their content, and of their sale and promotion is dealt, with by my colleague the Minister for Health and her Department, and enforced principally through the network of Environmental Health Officers operating under the Health Service Executive.
288. Deputy Ged Nash asked the Tánaiste and Minister for Finance if he is considering introducing a tax equivalent to Luxembourg's long established "taxe d'abonnement" in relation to funds domiciled in Ireland; and the amount that would be raised on an annual basis if the Luxembourg system was adopted by Ireland (details supplied). [67880/26]
View answerAs the Deputy may be aware, following its introduction in Finance Act 2000 investments in domestic funds are taxed under the gross roll-up regime. Irish resident investors investing through investment funds and life assurance policies are subject to tax through the gross roll-up regime. Under the gross roll-up regime, no annual tax on income or gains arising to a fund is charged but the fund is responsible for deducting Investment Undertaking Tax (IUT) on the triggering of a chargeable event. Chargeable events include:
• the making of relevant payments;
• the redemption of the investment;
• the transfer by an investor of their investment; and
• the ending of an eight-year period following the acquisition of the investment and then every eight years thereafter (deemed disposal).
Finance Act 2006 introduced the above-mentioned eight-year deemed disposal rule for all investments that benefit from the gross roll-up regime. This amendment was designed specifically to prevent the avoidance of tax by way of indefinite deferral of tax under the gross roll-up regime. This ensures that income isn’t being rolled up in funds without being taxed. On the ultimate disposal of the investment, any tax paid which arose as a result of a deemed disposal is allowed as a credit against any final tax liability on disposal.
Exit tax is withheld by the investment fund where there is a gain on the happening of a chargeable event. However, for certain investment funds where the units are held on a recognised clearing system, such as the case with ETFs, the fund is not required to deduct exit tax and the investor must self-assess the tax due.
Whether the investment fund accounts for exit tax or that tax is collected through self-assessment, the amount of the gain is subject to tax at a rate of 38% for individuals, or 25% if the investor is a company (a higher rate can apply where the investment fund is a personal portfolio investment undertaking).
I note that 'Taxe d'abonnement' is a tax levied in Luxembourg on the net assets of certain types of investment funds domiciled in Luxembourg. The tax is levied at different rates on investment funds depending on how they are constituted and regulated.
As there is no requirement for Irish domiciled investment funds to notify or to make a return of their net assets to Revenue, or to specify how they are regulated or constituted, it is not possible for Revenue to provide an estimate of the amount that would be raised on an annual basis if the Luxembourg system was adopted by Ireland.
Officials continue to monitor developments internationally in the fund taxation space and work is ongoing on recommendations made in the Funds Review Report 2030 to ensure Ireland remains a premier global location for investment funds.
290. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if counterfeit toys seized by customs are assessed for child-safety and CE compliance and referred for destruction where a serious risk is identified; and the number so referred in 2025 and to date in 2026. [67975/26]
View answer291. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if the Revenue Commissioners undertake joint or co-ordinated operations with An Garda Síochána and the Competition and Consumer Protection Commission targeting retail premises selling counterfeit goods; and if he will make a statement on the matter. [67974/26]
View answer292. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the number of counterfeit or unsafe product detections referred by the Revenue Commissioners to the Competition and Consumer Protection Commission in each of the years 2024 and 2025 and to date in 2026. [67973/26]
View answer293. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the resources, including staffing, allocated to customs enforcement against counterfeit goods at ports, mail centres and other points of importation; and if he is satisfied that this resourcing is adequate. [67972/26]
View answer294. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if the Revenue Commissioners have identified counterfeit goods, including counterfeit toys and electronic accessories, being imported through or from Northern Ireland and sold in retail premises alongside untaxed or non-compliant e-liquid products; and the enforcement action taken. [67971/26]
View answer295. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the number, category and estimated value of counterfeit goods seized by the Revenue Commissioners through Customs in each of the years 2024 and 2025 and to date in 2026; and the number of such cases referred for prosecution. [67970/26]
View answerI propose to take Questions Nos. 290 to 295, inclusive, together.
I am advised by Revenue that it implements customs controls on all goods entering the EU through Irish ports and airports. This involves detecting, intercepting, and seizing prohibited or restricted products, including counterfeit goods, at all points of entry.
Revenue maintains an intelligence-based, risk-focused enforcement presence, deploying over 900 staff across ports, airports, mail centres, supported by inland teams, a maritime unit and intelligence management and profiling teams.
Revenue collaborates closely with An Garda Síochána, the Competition and Consumer Protection Commission (CCPC), and the Health Products Regulatory Authority (HPRA) to combat threats to businesses, consumers, and the Exchequer. Goods suspected of breaching product safety or CE compliance are detained by Revenue and transferred to the CCPC for investigation, who is the competent authority for product safety, specifically in relation to consumer goods and toys.
Revenue’s role is confined to custom control role at ports and airports. Revenue do not hold statistics on cases referred to the CCPC or specific data on children’s toys referred to the CCPC for investigation/destruction.
Revenue advises me that it has no information in relation to any large-scale smuggling of counterfeit goods from Northern Ireland into the State.
Revenue do not seize goods suspected to be counterfeit from local retail premises or markets as it has no statutory power to do so and responsibility for dealing with counterfeit goods that are already present in the State falls to An Garda Síochána.
Revenue’s enforcement role regarding illegal vaping products focuses on e-liquids containing controlled drugs, such as Tetrahydrocannabinol (THC) and Hexahydrocannabinol (HHC), under the Misuse of Drugs Act 1977.
The table below outlines the number of vaping products that contained controlled drugs seized by Revenue from 2024 until the end of August 2026.
|
Year |
No. of Seizures |
Volume |
Value |
|
2026* |
307 |
16,268g |
€310,775 |
|
2025 |
169 |
4,378g |
€66,247 |
|
2024 |
55 |
3,910g |
€25,838 |
*As at end of August 2026
Revenue do not have any role in the administration of the retail licensing regime, which is conducted by the public health authorities under legislation introduced by the Minister for Health. Compliance with these regulations is undertaken by the Health Service Executive (HSE) as the market surveillance authority.
Where goods are suspected of infringing an IPR, they are detained pending examination by the rights holder. Where goods are confirmed by the holder of the IPR to be counterfeit, they are detained by Revenue and custody of these items is transferred to the CCPC for further investigation.
The table below provides a breakdown of the number and valuation of counterfeit products detected by Revenue from 2024 to 2026.
|
Year |
Number |
Value |
|
2026* |
13,887 |
€4.7m |
|
2025 |
28,202 |
€9.1m |
|
2024 |
66,445 |
€11.4m |
* As at end of August 2026
