Written Answers Nos. 201-221
201. Deputy Pauline Tully asked the Minister for Finance the estimated full-year yield that would be generated by establishing two new income tax bands of 45% on earnings between €140,000 and €205,000 and 50% on earnings over €205,001. [28671/24]
Amharc ar fhreagraThe Department of Finance has opened its pre-budget costings service, this is available with effect from 1 July 2024. The procedures for availing of this service are set out in a letter dated 1 July 2024 from the Secretary General of the Department to all recognised parties and technical groups in Dáil Éireann. To ensure efficiency and fairness all costing requests should be made in this manner, via the standard request format template, instead of the Parliamentary Question system at this time.
203. Deputy Rose Conway-Walsh asked the Minister for Finance if transfers to the SIF come out of the central fund and are included in net spending figures in the SPU; and if he will make a statement on the matter. [28726/24]
Amharc ar fhreagra204. Deputy Rose Conway-Walsh asked the Minister for Finance if the figures for net expenditure presented in the SPU include payments to the NTF; and if he will make a statement on the matter. [28727/24]
Amharc ar fhreagra205. Deputy Rose Conway-Walsh asked the Minister for Finance if in the figures for net expenditure presented in the SPU includes payments to the FIF/ICNF; and if he will make a statement on the matter. [28728/24]
Amharc ar fhreagraI propose to take Questions Nos. 203, 204 and 205 together.
I assume the Deputy is referring to net Exchequer expenditure.
Transfers to the SIF do not come out of the Central Fund and net Exchequer expenditure does not include transfers to the SIF. Transfers to the SIF come from PRSI receipts.
As set out in the Ministers and Secretaries Act 2011, expenditure from the NTF forms part of overall Government Expenditure Ceilings, and as such is included in the relevant ministerial ceilings (in this case DFHERIS). The Revised Estimates for Public Services 2024 (REV) outlined an overall Government Expenditure Ceiling of €96.7 billion for 2024, this €96.7 billion includes €920 million of expenditure from the NTF.
Payments to the NTF do not come out of the Central Fund, consequently, net Exchequer expenditure does not include payments to the NTF. The NTF is funded by levies on employers.
Transfers to the Future Ireland Fund (FIF) and the Infrastructure, Climate and Nature Fund (ICNF) are included in net Exchequer expenditure and will come from the Central Fund. In 2024, a transfer of c. €4 billion will be made to the FIF from the Exchequer and, approximately €2 billion and €4 billion will be transferred to the ICNF and FIF respectively from the dissolved National Reserve Fund resulting in an overall contribution of €10 billion to the funds at the end of 2024. From 2025, all transfers to the funds will come from the Central Fund.
It is important to mention that transfers into the funds have no impact on the General Government Balance (GGB). When compiling the GGB, transfers from the central fund to the FIF/ICNF are re-included in the “walk”[1] to offset the payment from the Central Fund.
[1] The “walk” reconciles the general government balance to the Exchequer balance.
206. Deputy Rose Conway-Walsh asked the Minister for Finance to provide a breakdown of the net lending of non-commercial Semi-State bodies outlined in annex 3 of the SPU, listing the NCSSBs involved; and if he will make a statement on the matter. [28729/24]
Amharc ar fhreagra207. Deputy Rose Conway-Walsh asked the Minister for Finance to provide details on the net lending of local Government outlined in annex 3 of the SPU, listing the key drivers of net lending; and if he will make a statement on the matter. [28730/24]
Amharc ar fhreagraI propose to take Questions Nos. 206 and 207 together.
The general government comprises the sub-sectors of central government, local government, and social security funds. Non-commercial semi-state bodies (NCSSBs) are classified within the central government subsector (S1311).
The Central Statistics Office (CSO) is responsible for the compilation of the general government deficit and debt outturn statistics, whereas my Department is responsible for producing forecasts published in the Budget and Stability Programme Update. These statistics are compiled in accordance with the European System of Accounts 2010 (ESA2010).
The NCSSBs included in these statistics are listed in the CSO’s annual Register of Public Sector Bodies (www.cso.ie/en/releasesandpublications/ep/p-rpbi/registerofpublicsectorbodies2023-provisional/). The local government sub-sector comprises local authorities, regional assemblies and Tier 3 Approved Housing Bodies (AHBs) and are also included in the Register of Public Sector Bodies.
The CSO collects data directly from these government bodies and publishes at the aggregate level. It cannot disseminate identifiable information in accordance with the Statistics Act, 1993.
My Department is provided with data by general government bodies, as required under the European Union (Requirements for Budgetary Frameworks of Member States) Regulations S.I. 508/2013 for the specific purpose of preparing the Budget and Stability Programme Update. Its mandate is to compile forecasts for the general government sector and publish these at the sub-sector level. The method in which the data is collected and compiled mirrors practices in the CSO. Therefore, my Department cannot provide data at the individual level of a general government agency involved in the net lending of NCSSBs or local government.
Table 1.3 of the CSO annual publication of Government Finance Statistics www.cso.ie/en/releasesandpublications/ep/p-gfsa/governmentfinancestatistics2022october2023/keyfindings/ shows a reconciliation from the Exchequer balance to general government balance.
208. Deputy Rose Conway-Walsh asked the Minister for Finance the amount held in FIF and ICNF; and if he will make a statement on the matter. [28731/24]
Amharc ar fhreagraThe Future Ireland Fund and Infrastructure Climate and Nature Fund Act 2024 was enacted on 18 June 2024. My officials are working with the Office of the Attorney General on the necessary commencement statutory instrument, which provide for the establishment of the two new funds.
By the end of this year, on the basis of the transactions outlined below, over €10 billion will be transferred to the new funds.
The Stability Programme Update, published by my Department in April 2024 provides a forecast of the level of contributions to the Future Ireland Fund and the Infrastructure, Climate and Nature Fund (ICNF) from 2024 to 2027.
There will be contributions to the Future Ireland Fund and the ICNF respectively from the dissolution of the National Reserve Fund (NRF) this year. €2 billion will be transferred from the NRF to the ICNF and the remaining balance standing to the credit of the NRF will transfer to the FIF. The amount transferred from the NRF to the Future Ireland Fund will depend on the exact value at the date of transfer.
The Act provides for annual transfers from the Exchequer to each of the funds. From 2024 to 2035, 0.8% of ‘relevant GDP’ will be paid from the Exchequer into the Future Ireland Fund. That equates to c. €4.1 billion this year. From 2025 to 2030, €2 billion will be paid from the Exchequer into the ICNF.
The NTMA will has been working closely with officials in my Department and carrying out the necessary preparatory work for the establishment of the Funds.
209. Deputy Dara Calleary asked the Minister for Finance if his Department will examine the help-to-buy scheme with a view to lowering the 70% mortgage requirement to access the scheme; if he will acknowledge that his threshold excludes thousands of both purchasers and properties from the scheme; and if he will make a statement on the matter. [28749/24]
Amharc ar fhreagraThe Help to Buy (HTB) Scheme was introduced in 2017 with the purpose of assisting first-time buyers with the deposit required to purchase or self-build a new house or apartment to live in as their home. The relief is only available in respect of new builds, with a view to increasing the supply of new housing and stimulating demand.
The incentive gives 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. Section 477C of the Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the HTB scheme and provides that the amount of relief available shall be the lesser of:
• €30,000,
• 10 per cent of the purchase value of a new home/self-build property, or
• the amount of Income Tax and DIRT paid in the four years before application for the relief.
An increase in the supply of new housing remains a priority aim of Government policy. HTB is specifically designed to encourage an increase in demand for new build homes in order to support the construction of an additional supply of such properties. For a property to qualify for HTB, it must be new or converted for use as a dwelling, having not been previously been used as a dwelling.
One condition of the scheme is that a qualifying first-time purchaser (“FTP”) must take out a loan in an amount equal to at least 70% of the purchase value of the property. In the case of a self-build property, the purchase value is the approved valuation of the self-build property, as approved by the lender in accordance with the Central Bank’s macro prudential rules. These rules stipulate the valuation should include the site value.
The HTB scheme, was initially intended to be limited to persons who had mortgages with a minimum LTV of 80%. However, Central Bank data indicated that a sizable number of first-time buyers take out a mortgage with a LTV of less than 80%. As such, it was decided to amend the scheme in the subsequent Finance Bill to set the minimum LTV at 70% so as to ensure that first-time buyers did not feel compelled to borrow larger amounts than they would have otherwise in order to qualify for the scheme.
Individuals who are in the position of being able to avail of a mortgage at a lower loan-to-value ratio than 70% are considered to have sufficient resources to meet the deposit requirements of the macro-prudential rules and thus less in need of assistance from the Exchequer. Lowering the LTV ceiling would therefore only increase dead-weight in the scheme. In fact, the independent review of the scheme which took place in 2022 recommended that the LTV be increased to 80% for purchasers availing of HTB.
I have no plans at present to change the loan to ratio value under the scheme.
210. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by imposing a minimum effective corporate tax rate of 15% on pre-tax gross trading profits before deductions, reliefs and allowances and assuming no behavioural change; and if he will make a statement on the matter. [28773/24]
Amharc ar fhreagra211. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by imposing a financial transaction tax of 0.1% on shares and securities and 0.01% on derivatives; and if he will make a statement on the matter. [28774/24]
Amharc ar fhreagra212. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated disallowing historic losses (losses forward) as tax deductions for banks and insurance companies; and if he will make a statement on the matter. [28775/24]
Amharc ar fhreagra213. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by introducing a 4% levy on profits of pharmaceutical companies and private health companies; and if he will make a statement on the matter. [28776/24]
Amharc ar fhreagra221. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by establishing a new levy of 5% on the profits of all airlines and aircraft leasing companies; and if he will make a statement on the matter. [28786/24]
Amharc ar fhreagra230. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by establishing a new rate of corporate tax of 50% on the profits of all energy companies; and if he will make a statement on the matter. [28795/24]
Amharc ar fhreagraI propose to take Questions Nos. 210, 211, 212, 213, 221 and 230 together.
The Department of Finance has opened its pre-budget costings service, this is available with effect from 1 July 2024. The procedures for availing of this service are set out in a letter dated 1 July 2024 from the Secretary General of the Department to all recognised parties and technical groups in Dáil Éireann. To ensure efficiency and fairness all costing requests should be made in this manner, via the standard request format template, instead of the Parliamentary Question system at this time.
214. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by abolishing the SARP; and if he will make a statement on the matter. [28777/24]
Amharc ar fhreagraThe Department of Finance has opened its pre-budget costings service, this is available with effect from 1 July 2024. The procedures for availing of this service are set out in a letter dated 1 July 2024 from the Secretary General of the Department to all recognised parties and technical groups in Dáil Éireann. To ensure efficiency and fairness all costing requests should be made in this manner, via the standard request format template, instead of the Parliamentary Question system at this time.
215. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by establishing four new income tax bands of 50% on earnings between €100,000 and €150,000, 55% on earnings between €150,000 and €200,000, 60% on earnings between €200,000 and €275,000, and 65% on earnings between over €275,000; and if he will make a statement on the matter. [28778/24]
Amharc ar fhreagraThe Department of Finance has opened its pre-budget costings service, this is available with effect from 1 July 2024. The procedures for availing of this service are set out in a letter dated 1 July 2024 from the Secretary General of the Department to all recognised parties and technical groups in Dáil Éireann. To ensure efficiency and fairness all costing requests should be made in this manner, via the standard request format template, instead of the Parliamentary Question system at this time.
216. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost of introducing three new bank holidays, including estimating increases in VAT and tax receipts that would increase due to increased activity, tourism and spending on these bank holidays; and if he will make a statement on the matter. [28781/24]
Amharc ar fhreagra227. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost of lost VAT to the Exchequer by introducing price controls that cap petrol/diesel at €1.30 and €1.40 per litre, electricity at €0.25 per kilowatt hour, natural gas at €0.08 per kilowatt hour and oil (kerosene) at €1 per litre; and if he will make a statement on the matter. [28792/24]
Amharc ar fhreagraI propose to take Questions Nos. 216 and 227 together.
The Department of Finance has opened its pre-budget costings service with effect from 1 July 2024. The procedures for availing of this service are set out in a letter dated 1 July 2024 from the Secretary General of the Department to all recognised parties and technical groups in Dáil Éireann. To ensure efficiency and fairness all costing requests should be made in this manner, via the standard request format template, instead of the Parliamentary Question system at this time.
217. Deputy Richard Boyd Barrett asked the Minister for Finance the number of property owners paying LPT on one property, two properties, three properties, four properties, between five and ten, between ten and 20, between 20 and 50 between 50 and 100 and 100 or more, excluding local authorities and AHDs; and if he will make a statement on the matter. [28782/24]
Amharc ar fhreagraI am advised by Revenue that the distribution of liable residential property owners, as indicated in respect of Local Property Tax records for the valuation period 2022-2025, is set out in the table below. This breakdown of property owners reflects those with an LPT liability and excludes Local Authority, Approved Housing Bodies and exempt properties. These figures are provisional and subject to change.
|
Ownership Count |
Number of Property Owners |
|
1 |
1,307,009 |
|
2 |
124,241 |
|
3 |
27,467 |
|
4 |
10,100 |
|
5 to 10 |
11,495 |
|
11 to 20 |
1,799 |
|
21 to 50 |
666 |
|
51 to 100 |
192 |
|
>100 |
153 |
|
Total |
1,483,122 |
218. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost of abolishing the LPT and introducing a tax on NPPRs as follows: single NPPR - €1,000; ten or less NPPRs - €1,500 per property; 11 or more NPPR’s - €2,500 per property; and if he will make a statement on the matter. [28783/24]
Amharc ar fhreagraThe Department of Finance has opened its pre-budget costings service, this is available with effect from 1 July 2024. The procedures for availing of this service are set out in a letter dated 1 July 2024 from the Secretary General of the Department to all recognised parties and technical groups in Dáil Éireann. To ensure efficiency and fairness all costing requests should be made in this manner, via the standard request format template, instead of the Parliamentary Question system at this time.
219. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by introducing a levy of 33% on commercial aviation fuel; and if he will make a statement on the matter. [28784/24]
Amharc ar fhreagra220. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated if Ireland imposed the European Commission’s proposed tax on aviation fuel in Budget 2023 and where that tax would be imposed on all flights including executive and corporate flights; and if he will make a statement on the matter. [28785/24]
Amharc ar fhreagra233. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost of reversing the 2023 carbon tax increase and postponing the 2024 increase; and if he will make a statement on the matter. [28798/24]
Amharc ar fhreagraI propose to take Questions Nos. 219, 220 and 233 together.
The Department of Finance has opened its pre-budget costings service, this is available with effect from 1 July 2024. The procedures for availing of this service are set out in a letter dated 1 July 2024 from the Secretary General of the Department to all recognised parties and technical groups in Dáil Éireann. To ensure efficiency and fairness all costing requests should be made in this manner, via the standard request format template, instead of the Parliamentary Question system at this time.
