Dáil Éireann Debate, Tuesday - 29 September 2026
182. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance if he has read the latest Wealth Tax Report (details supplied); and if he is considering introducing a similar wealth tax to broaden the tax base and fund critical infrastructure projects and services. [68639/26]
View answerReports of the nature referenced in this PQ are regularly produced by various bodies. As appropriate they are assessed by my Department and their findings conveyed to me.
On the issue of introducing a stand-alone wealth tax, as the Deputy will be aware, wealth is already taxed in a number of ways in Ireland. These include Capital Gains Tax, Capital Acquisitions Tax and Local Property Tax. Stamp Duty also acts as a tax on wealth, including that charged on the acquisition of the shares, stocks and marketable securities of Irish registered companies, and on the acquisition of property both residential and non-residential.
The revenue raised from a wealth tax, regardless of the form it takes, may not be additional to that raised by the existing forms of wealth taxation, as the revenues from those taxes could be impacted by the introduction of a wealth tax.
In looking at the question of wealth taxes, the Commission on Taxation & Welfare's 2022 report identified challenges that would impede the implementation of a wealth tax. Their conclusion was that a new tax on net wealth should not be introduced without first attempting to substantially amend Ireland’s existing taxes on capital and wealth. The Commission argued that, as an alternative to introducing a new tax on wealth, CGT and CAT could be re-examined. These are existing taxes on wealth that have well-established, but distinct, bases and are well-understood in their operation.
A 2024 report by the Parliamentary Budget Office titled ‘An Overview of Taxes on Wealth in Ireland’ noted, amongst other things, that a specific wealth tax risks an increased concentration of overall tax receipts on a relatively small proportion of taxpayers. It proposed base-broadening measures to increase the number of taxpayers and to diversify revenue sources.
It is important to note that Ireland has one of the most progressive taxation systems and social transfers of any EU or OECD country, which contributes to the redistribution of income and to the reduction of income inequality.
In 2016, my Department worked with the ESRI to conduct a research project into the distribution of wealth in Ireland and the potential implications of a wealth tax. Recognising the passage of time that has elapsed since this research project was undertaken, my Department and the ESRI are currently conducting analysis under its Joint Research Programme of the potential impact of a tax on household wealth in Ireland. This will include scenario and distributional analysis under a range of wealth tax scenarios.
It is expected that a paper will be completed and published before the end of this year and I will consider its analysis in due course. I do not plan on introducing a wealth tax in Budget 2027.
My colleague the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation has responsibility in relation to critical infrastructure projects.
