Written Answers Nos. 361-380
361. Deputy Ruairí Ó Murchú asked the Minister for Finance if he is aware of the recently published ESRI survey report into issues facing cross-border workers; how he intends progressing the issues raised; and if he will make a statement on the matter. [32381/24]
Amharc ar fhreagra365. Deputy Ruairí Ó Murchú asked the Minister for Finance his Department’s plans to engage with Northern and British authorities on the issues facing cross-border workers and cross-border remote workers, as outlined in the recent ESRI survey report; and if he will make a statement on the matter. [32385/24]
Amharc ar fhreagraI propose to take Questions Nos. 361 and 365 together.
My Department commissioned the ESRI to undertake a research project on the nature and extent of cross-border working as there was a general acceptance that data in relation to this issue could be improved. On 17 June 2024, the ESRI published the research paper entitled ‘A Study of Cross-Border Working on the Island of Ireland’. This paper estimates the number of cross-border workers, as well as providing an overview of the profile and characteristics of cross-border workers.
In regard to the tax treatment associated with cross-border working, there have been ongoing discussions in recent years, particularly given the increase in remote working as a result of the Covid-19 pandemic. However, cross-border working gives rise to complex issues involving shared taxing rights between different jurisdictions.
As cross-border working has potential tax implications not only on an island of Ireland basis, but also internationally, it is important that the wide range of policy considerations that arise are fully understood and considered. The best place for this is at an OECD level, to work through the various issues thoroughly and to minimise the potential for unintended consequences. The OECD has commenced its work on global mobility and my officials will continue to engage on this matter.
My Department is actively engaging in any international discussions on the policy implications of cross-border working and also remains open to engaging bilaterally with other jurisdictions as appropriate to the circumstances. However, the focus in the near term is to engage at OECD level as that is the best forum to discuss this matter.
362. Deputy Ruairí Ó Murchú asked the Minister for Finance to provide an assessment of the State’s ability at attracting more companies offering public liability insurance into the market to ensure savings for policy holders; and if he will make a statement on the matter. [32382/24]
Amharc ar fhreagraInsurance reform remains a priority for this Government, and is being delivered through the Action Plan for Insurance Reform. The latest Action Plan Implementation Report shows that the vast majority of the plan’s objectives have been either completed or initiated. The importance of the Action Plan is highlighted through its oversight by a Cabinet Sub-Group on insurance reform, chaired by the Tánaiste.
There are clear indications that the market is responding to the Government reform agenda, with insurance now available in previously challenging areas such as equestrian activities, inflatable hire, sports clubs, play centres, and SMEs. Key to this was the overhaul of the duty of care, the policy intent of which was to address ‘slips, trips and fall’ type claims, which are prevalent in the activity-based or heavy-footfall sectors. In time, this legislation should help reduce premiums for businesses in these areas as it is intended to reduce claims proceeding to costly and time-consuming litigation.
Minister of State Richmond is currently meeting the CEOs of the major insurance companies to continue to stress the Government’s expectations that they will pass on any savings accrued from the package of insurance reforms to consumers in the forms of lower premiums and expanded risk appetite. In addition, feedback from engagements with other insurance stakeholders is indicating that public liability insurance issues are showing signs of some easing, with more capacity entering the market and insurance rates being reduced. This is a sign that the Government’s reform agenda is having the desired effect.
In conclusion, I want to assure the Deputy of the Government’s commitment to the ongoing implementation of the Action Plan for Insurance Reform, ensuring the availability and affordability of this essential financial service to businesses, households and individuals across Ireland.
363. Deputy Ruairí Ó Murchú asked the Minister for Finance to provide an assessment of the impact of the duty of care and Personal Injuries Assessment Board legislation on insurance premiums for customers; and if he will make a statement on the matter. [32383/24]
Amharc ar fhreagraAt the outset it is important to note that neither I, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive).
Insurance reform remains a priority for this Government and much has been done to deliver such reform. The Government's Action Plan for Insurance Reform sets out our reform agenda, with the vast bulk of the actions it contains are now either delivered or initiated. This level of progress will bring benefits to individuals, businesses and households alike. The implementation of the Action Plan is overseen by a Cabinet Committee Sub-Group on Insurance Reform, chaired by the Tánaiste. Nevertheless, Government is aware that some groups continue to face difficulty in terms of affordability and availability of certain insurance lines.
Accordingly, Minister of State Richmond is continuing to engage directly with insurers to ensure savings from reforms translate into lower premiums and increased coverage availability. The entry of new insurers and expansion of existing ones into new areas indicates confidence in these reforms. Despite a hardening global insurance market, domestic reforms aim to enhance Ireland’s competitive edge in attracting international insurance capital.
The aforementioned Government's Action Plan for Insurance Reform has included significant achievements since 2020, most notably the rebalancing of the Duty of Care in July 2023, reforming the Injuries Resolution Board (formerly PIAB) and introducing the new Personal Injury Guidelines. These will benefit all insurance lines including, personal, commercial and liability cover.
The Personal Injury Guidelines (PIGs), introduced in April 2021, aim to stabilise personal injury awards and reduce high insurance premiums. Insurance premiums are also influenced by multiple dynamic factors, including risk, business costs, litigation and reinsurance, so reduced personal injury awards may not directly translate to lower premiums on a euro-for-euro basis. Although reduced awards at the Injuries Resolution Board are evident, litigation delays mean court judgments have yet to fully reflect these changes. Accordingly, industry experts suggest it may take twelve to eighteen months post the Delaney judgement for Personal Injury Guidelines award levels to be reflected at a Court level. Limited data from the Court Service complicates a thorough impact analysis.
The Central Bank’s National Claims Insurance Database shows that employer/public liability insurance has recently returned to profitability after years of losses. Business insurance premiums can also be affected by factors such as construction inflation, increased turnover, staff, visitor numbers, and other non-personal injury related insurance costs.
The Government’s focus remains firmly on ensuring that the benefits arising from the entire reform programme are realised, for consumers, businesses, and community and voluntary groups.
364. Deputy Ruairí Ó Murchú asked the Minister for Finance the number of persons who have availed of the rent tax credit in this tax year, by county, in tabular form; and if he will make a statement on the matter. [32384/24]
Amharc ar fhreagraThe Rent Tax Credit (RTC), as provided for in section 473B of the Taxes Consolidation Act 1997 (TCA 1997), was introduced by the Finance Act 2022 and may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.
I am advised by Revenue that the RTC statistics currently available refer only to claims by PAYE taxpayers. Data on claims by self-assessed taxpayers are not yet available. These data will be available, in respect of the 2022 year of assessment, in Q3 2024 when the self-assessed tax returns for that year, filed in late 2023, are fully analysed.
RTC claims are made are on a ‘taxpayer unit’ basis. A taxpayer unit is either an individual with any personal status who is singly assessed or a couple in a marriage or civil partnership who have elected for joint assessment.
The below table outlines the number of claims by year of assessment and by county for 2022, 2023 and 2024 as at 17 July 2024.
|
County |
2022 Year of Assessment |
2023 Year of Assessment |
2024 Year of Assessment |
|
Carlow |
2,568 |
2,335 |
494 |
|
Cavan |
2,367 |
2,368 |
479 |
|
Clare |
3,547 |
3,335 |
803 |
|
Cork |
31,260 |
28,354 |
6,760 |
|
Donegal |
3,513 |
3,278 |
793 |
|
Dublin |
129,784 |
124,002 |
30,472 |
|
Galway |
19,746 |
17,123 |
4,326 |
|
Kerry |
4,317 |
3,971 |
801 |
|
Kildare |
10,099 |
9,599 |
2,298 |
|
Kilkenny |
2,985 |
2,898 |
645 |
|
Laois |
2,229 |
2,031 |
525 |
|
Leitrim |
894 |
811 |
195 |
|
Limerick |
13,494 |
11,666 |
2,776 |
|
Longford |
1,650 |
1,585 |
318 |
|
Louth |
3,892 |
3,768 |
865 |
|
Mayo |
4,046 |
3,825 |
913 |
|
Meath |
5,367 |
5,456 |
1,151 |
|
Monaghan |
2,021 |
1,972 |
413 |
|
Offaly |
2,354 |
2,250 |
517 |
|
Roscommon |
1,788 |
1,733 |
404 |
|
Sligo |
3,223 |
2,805 |
657 |
|
Tipperary |
4,994 |
4,755 |
1,011 |
|
Waterford |
5,370 |
4,964 |
1,202 |
|
Westmeath |
4,073 |
3,878 |
922 |
|
Wexford |
4,446 |
4,124 |
940 |
|
Wicklow |
3,419 |
3,319 |
802 |
|
County Not Currently Available |
4,206 |
3,081 |
661 |
|
Total |
277,652 |
259,286 |
62,143 |
366. Deputy Ruairí Ó Murchú asked the Minister for Finance if there are plans to increase the lending limits for credit unions; and if he will make a statement on the matter. [32386/24]
Amharc ar fhreagraThe credit union sector loan book is €6.6bn (consisting of €5.8bn personal/unsecured lending and €788.7m mortgage/business lending). Future growth in the loan book will be driven by growth in personal/unsecured and mortgage/business lending.
In January 2020, revised Central Bank Lending Regulations were put into effect on credit union house and business lending only i.e. there is no regulatory limit on personal, unsecured lending.
The Regulations outline:
• Combined house and business lending not to exceed 7.5% of assets of the credit union, with an inner limit of 5% of assets for business lending. This applies to all credit unions.
• Combined house and business lending not to exceed 10% of assets of the credit union, with an inner limit of 5% of assets for business lending. This applies for all credit unions above €50 million assets and with regulatory reserves greater than 12.5%. The majority of credit unions could avail of the 10% limit. To make use of this limit, qualifying credit unions need only notify the Central Bank.
• Combined house and business lending not to exceed 15% of assets of the credit union. This is subject to minimum assets of €100 million and Central Bank approval. 68 credit unions holding more than 70% of sector assets could apply for the 15% limit. The most recent figures provided by the Central bank show that 14 applications for this limit have been approved, with a further 6 in progress. I strongly encourage all eligible credit unions to apply for this higher limit.
The Government is encouraged by the continued growth in both mortgage and commercial lending for credit unions. Year on year to March 2024 mortgage lending has grown from €364.6 million to €614.9 million (an increase of 68.7%) and commercial lending has grown from €151.8 million to €173.8 million (an increase of 14.5%). This lending growth will be further supported through the enabling provisions of the Credit Union (Amendment) Act, such as member referrals and loan participations and referrals. The sector are also creating Credit Union Service Organisations ("CUSO's") for some key products such as mortgages and agri loans. These CUSOs offer a standard, nationwide product offering and will also drive growth in the sector.
Initial analysis completed by the Central Bank estimates that there is more than €2 billion available unutilised lending capacity in the sector, based on current maximum limits. I am aware that Minister Richmond, Minister of State with responsibility for credit unions has engaged with many credit union stakeholders regarding lending limits and other issues facing the sector. I am also aware that Minister Richmond has engaged with the Central Bank to discuss these issues, and the views of the recently published ICURN Peer Review Report which highlighted:,
‘Following a review of the performance of many of the mortgages that credit unions have made in the past several years, we support a collaborative approach to a review of the impact of the changes to the lending framework introduced in 2020. Without some liberalization of the limits and flexibility, the Amendment Bill of 2022 may not have the anticipated positive impact, as credit unions may question whether they can achieve the necessary economies of scale to make it worthwhile diversifying into mortgage and SME lending.’ The ICURN Report also supported separation of limits for house and business lending given the different risk profiles of these types of lending.
The Central Bank are currently conducting a review of the changes to the lending framework introduced in January 2020, with an initial analysis expected by H2 2024.
I trust the Central Bank will reflect on the views of the credit union stakeholders and the ICURN report when considering any potential amendments to the regulations.
367. Deputy Rose Conway-Walsh asked the Minister for Finance if the tax measures outlined on page 11 of the summer economic statement represent only tax expenditure, or if it is net tax measures; and if he will make a statement on the matter. [32396/24]
Amharc ar fhreagra369. Deputy Pearse Doherty asked the Minister for Finance if and how his Department incorporates increases in Government current and capital expenditure into its tax forecasts, for example, whether general Government expenditure is incorporated as a variable in its tax forecasting models; and if he will make a statement on the matter. [32440/24]
Amharc ar fhreagra439. Deputy Pearse Doherty asked the Minister for Finance if tax projections under the Stability Programme Update (SPU) incorporated or factored in increases in capital expenditure, for example, in relation to VAT, under the SPU; and if he will make a statement on the matter. [33722/24]
Amharc ar fhreagraI propose to take Questions Nos. 367, 369 and 439 together.
The stimulatory effect of government expenditure results in higher levels of consumer spending, employment and SME investment in our economy.
Projections of tax revenue produced by my Department are driven by macroeconomic indicators: for example, VAT forecasts are related to consumer spending. These macroeconomic drivers reflect, among other factors, the stimulating impact that Government expenditure has on the economy.
The fiscal projections also include additional factors which can influence receipts such as once-off factors, policy measures and specialist judgement.
My Department regularly reviews its method for forecasting tax revenues, with the most recent of these reviews taking place in 2019 with the publication of the Tax Forecasting Methodological Review. This review can be found at the below link.
www.gov.ie/en/publication/76468a-tax-forecasting-methodological-review-2019/
My Department will publish a full suite of updated macroeconomic and fiscal projections with the Budget in October.
The Summer Economic Statement outlined a €1.4 billion taxation package for Budget 2025. As in previous years, it is expected that the €1.4 billion package announced on Budget Day will encompass both tax expenditures and revenue-raising measures.
368. Deputy Ivana Bacik asked the Minister for Finance when amending legislation will be brought before the Houses of the Oireachtas to reflect circumstances outside of the six medical criteria provided for under the disabled drivers and disabled passengers scheme. [32400/24]
Amharc ar fhreagraThe Deputy should note that my Department and I share concerns that the Disabled Drivers and Disabled Passengers Scheme or DDS is no longer fit-for-purpose and believe it should be replaced with a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual.
However, this is very much a matter for Government as whilst my Department has oversight of the DDS, I do not have responsibility for disability policy.
As the Deputy is aware the National Disability & Inclusion Strategy or NDIS Transport Working Group recommended that the DDS be replaced with a modern, fit-for-purpose vehicular adaptation scheme. This is in line with the general view that we need to move away from a medical criteria-based approach to a needs-based approach.
The next National Disability Strategy is currently under development, which will be a whole-of-government strategy that will advance the implementation of the United Nations Convention on the Rights of Persons with Disabilities. Transport has been identified as a strong point of focus and is intended to be a pillar therein.
Under the aegis of the Department of Taoiseach officials from relevant Departments and agencies are meeting to discuss the issues arising from the NDIS report including how the DDS can be replaced.
The Department of Finance submitted a note to the group with my predecessor's approval in mid-January 2024. This note outlines a proposal for a replacement scheme for the DDS which would be a needs-based, grant-led approach for necessary vehicle adaptations. Further consideration is being given to this matter through the establishment of sub-group of the Department of Taoiseach working group. This sub-group met in July 2024 and is expected to report in the Autumn.
In that context, any further changes to the existing DDS would run counter to NDIS proposals to entirely replace the scheme with a modern, fit-for-purpose vehicular adaptation scheme.
371. Deputy Pádraig O'Sullivan asked the Minister for Finance if consideration will be given to expanding the inheritance threshold in budget 2025 (details supplied); and if he will make a statement on the matter. [32443/24]
Amharc ar fhreagraCapital Acquisitions Tax (CAT) is a beneficiary-orientated tax that is payable by the recipient of a gift or inheritance as opposed to the person providing that gift or inheritance.
For CAT purposes, the relationship between the person giving a gift or inheritance (i.e. the disponer) and the person who receives it (i.e. the beneficiary) determines the maximum amount, known as the “Group threshold”, below which CAT does not arise.
The Group A threshold (currently €335,000) applies, inter alia, where the beneficiary is a child (including adopted child, stepchild and certain foster children) of the disponer. The Group B threshold (currently €32,500) applies where the beneficiary is a brother, sister, nephew, niece or lineal ancestor or lineal descendant such as a grandchild of the disponer. The Group C threshold (currently €16,250) applies in all other cases.
Any prior gift or inheritance received by a beneficiary since 5 December 1991 from within the same Group threshold is aggregated for the purposes of determining whether any tax is payable on a benefit. Where a person receives gifts or inheritances that are in excess of the relevant tax-free threshold, CAT at a rate of 33% applies on the excess benefit.
Gifts and inheritances between spouses and civil partners are exempt from CAT.
In relation to the details supplied, it is important to note that while the Group A threshold applies mainly where children receive gifts and inheritances from their parents, the Group B threshold (currently €32,500) applies where the beneficiary is a sibling, niece, nephew, lineal ancestor or lineal descendant of the disponer. Thus, the reference to a person being taxed at 33% on a gift or inheritance received from a family member where the value exceeds €16,000 is not accurate. The Group C threshold (currently €16,250) applies to gifts and inheritances received by persons who are of a more remote relationship to the disponer than Group A and Group B or who are not related to the disponer in any way.
Accordingly, where a single person makes a gift or inheritance to a family member, who is not their spouse, child or civil partner, the recipient of that gift or inheritance will be able to avail of either the Group B or Group C threshold depending on the nature of their relationship with the disponer. Furthermore, there are a number of exemptions and reliefs from CAT that may apply depending on the circumstances of the case, many of which do not require that any specific family relationship applies.
One such exemption is the CAT dwelling house exemption. Where a person takes an inheritance of a dwelling house, that person may be able to avail of the dwelling house exemption. To qualify for the exemption, the inherited property must have been the disponer’s principal private residence at the date of death. This requirement is relaxed in situations where the deceased person left the property before the date of death due to ill health; for example, to live in a nursing home. The beneficiary must also have lived in the house for 3 years prior to the date of the inheritance and must continue to live in the house for 6 years after that date. In addition, the beneficiary must not have a beneficial interest in any other residential property. Detailed guidance on the dwelling house exemption has been published on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/capital-acquisitions-tax/cat-part24.pdf.
There is also provision in CAT legislation for a niece or nephew of the disponer to avail of the Group A threshold where the gift or inheritance consists of business assets and certain conditions are met. The niece or nephew must have worked substantially on a full-time basis for a period of five years prior to the gift or inheritance being given in carrying on, or assisting in the carrying on, the trade, business or profession, of the disponer.
Further information on this relief has been published on the Revenue website at: www.revenue.ie/en/gains-gifts-and-inheritance/cat-reliefs/favourite-nephew-or-niece-relief/index.aspx
372. Deputy Richard Boyd Barrett asked the Minister for Finance the expected revenue yield from an increase in the vacant homes tax to 25% in a full year; and if he will make a statement on the matter. [32511/24]
Amharc ar fhreagraAs the Deputy will be aware, the vacant homes tax (VHT) is charged as a multiple of the local property tax (LPT) charge, rather than as a percentage of market value. For the first chargeable period ended on 31 October 2023, VHT was charged at three times the property's base LPT charge. For the chargeable period that commenced on 1 November 2023 and subsequent chargeable periods, VHT will be charged at five times the property's base LPT charge.
I am advised by Revenue that the data required to cost the Deputy’s proposal are not currently available for statistical analysis. The Deputy may wish to resubmit the proposal under the party costing service, as it is expected the data will be available at a later date in the summer.
373. Deputy Pauline Tully asked the Minister for Finance if correspondence has been received from an organisation (details supplied) with a request for him to meet with it; and if he will meet with the organisation to discuss its concerns regarding the scheduled excise duty increase which was announced by his predecessor to take place on 1 August this year. [32690/24]
Amharc ar fhreagraI can confirm that correspondence has been received from this organisation directly and via a number of T.D.s. My officials met with members of this organisation, most recently in March of this year, to engage with them on the matters raised in previous similar correspondence.
I am aware of the concerns raised in their most recent correspondence. However, as the Deputy will be aware a number of factors affect the final retail price of fuels including energy market dynamics, wholesale pricing, individual retail pricing policy, transport costs, exchange rate fluctuations and taxation. It is important to note that despite the restoration of excise rates which occurred in April 2024, national average retail prices have shown steady decreases in recent weeks. While national average prices as of 13 May 2024 were approximately €1.84 and €1.78 per litre for petrol and auto diesel respectively, more recent prices as of 15 July 2024 were approximately €1.77 for petrol and €1.71 for auto diesel. According to the Consumer Council of Northern Ireland equivalent prices as of 18 July 2024 were €1.67 for petrol and €1.70 for auto diesel (ECB exchange rate 18 July 2024).
While I recognise that households and business continue to face challenges, the Government must strike the appropriate balance between providing support and avoiding fuelling cyclical inflationary trends. The Government has provided relief to consumers and businesses since 2022 through a number of support measures including temporary reductions in excise. However, these measures were introduced as temporary support measures and involve an ongoing cost to the exchequer while they are retained.
I and my officials will of course continue to monitor and review energy prices.
374. Deputy Róisín Shortall asked the Minister for Finance further to Parliamentary Question No. 171 of 11 June 2024, the engagements he has had with colleagues in the Department of Health in respect of a VAT exemption for counsellors and psychotherapists since May 2024; and if he will make a statement on the matter. [32775/24]
Amharc ar fhreagraAs previously outlined , the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under our legislation the provision of medical care services by recognised medical professionals are exempt from VAT. However in order for them to be exempt, there has to be a formal registration process thus explaining why counsellors and psychotherapists cannot qualify for the exemption until the Counsellors and Psychotherapists Registration Board is opened.
I understand that officials in my Department met with their counterparts in the Department of Health on 15 February in relation to this and other tax matters and have advised them that the VAT exemption in question will apply from the date of registration by the Counsellors and Psychotherapists Registration Board. Following this meeting I understand further correspondence issued to the Department of Health on 10 April.
As the Deputy will be aware, questions on the establishment of the Counsellors and Psychotherapists Registration Board and their progress in opening their register are a matter for my colleague, the Minister for Health.
376. Deputy Ged Nash asked the Minister for Finance when, based on current projections and forecasts from his Department and the National Treasury Management Agency, it is forecast that the debt to GNI* ratio will fall below 60%; the projected net debt ratio for 2023; the projected net debt ratio for 2024; and if he will make a statement on the matter. [32890/24]
Amharc ar fhreagraThe General Government Gross Debt (GGD) is a gross measure of government liabilities. It measures the gross level of borrowings for the general government sector which comprises the sub-sectors of central government, local government, and social security funds.
The Net Debt is gross government liabilities excluding Excessive Deficit Procedure (EDP) financial assets of government. These EDP financial assets include liquid assets held by the Exchequer, Ireland Strategic Investment Fund cash and non-equity investments and other cash and liquid assets held by the general government sector.
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 the forecasts. These statistics are compiled in accordance with the European System of Accounts 2010 (ESA2010).
The latest forecasts were produced in the Stability Programme Update (SPU) 2024, which outlines that in 2023, the GGD ratio was 76% of GNI*, while the net debt ratio was 62% of GNI*.
The SPU forecasts that the GGD ratio for 2024 will be 72% of GNI*, and the net debt ratio is forecasted at 59% of GNI*.
The SPU forecasts extend to 2027, which estimates GGD ratio of 66% of GNI* and net debt ratio of 51% of GNI* by 2027.
My Department will produce a full set of fiscal projections as part of Budget 2025 in the autumn. It is intended that these updated projections will extend to 2030.
377. Deputy Ged Nash asked the Minister for Finance the National Treasury Management Agency’s end-of-year cash balance for 2023; its current cash balance; and if he will make a statement on the matter. [32891/24]
Amharc ar fhreagra378. Deputy Ged Nash asked the Minister for Finance to provide the bond redemptions due on Irish national debt for each year from 2024 to 2030; the month when redemptions are due; the interest rate applying to each; the projected interest rate costs on servicing the national debt each year from 2025 to 2030, in tabular form; and if he will make a statement on the matter. [32892/24]
Amharc ar fhreagraI propose to take Questions Nos. 377 and 378 together.
The NTMA informs me that Exchequer cash and liquid asset balances stood at €24.8bn at year-end 2023. At end-June 2024, the equivalent figure was €27.6bn. The increase largely reflects the Exchequer surplus of over €3bn recorded in the first half of the year.
The maturity profile of Ireland’s benchmark Government bonds for the period 2025 to 2030 is shown in the table below. The 3.4% Treasury Bond 2024 matured on 18 March this year. The balance at maturity was €8bn.
|
Bond |
End-June 2024 Balance €bn |
Date of Maturity |
Coupon |
|
5.4% Treasury Bond 2025 |
11.5 |
13/03/2025 |
5.4% |
|
1.0% Treasury Bond 2026 |
11.6 |
15/05/2026 |
1.0% |
|
0.2% Treasury Bond 2027 |
7.8 |
15/05/2027 |
0.2% |
|
0.9% Treasury Bond 2028 |
8.5 |
15/05/2028 |
0.9% |
|
1.1% Treasury Bond 2029 |
10.2 |
15/05/2029 |
1.1% |
|
2.4% Treasury Bond 2030 |
9.4 |
15/05/2030 |
2.4% |
|
0.2% Treasury Bond 2030 |
8.1 |
18/10/2030 |
0.2% |
*The table excludes Amortising Bonds. €130m of these bonds are due to mature between end-June 2024 and year-end 2030.
The Stability Programme Update of April this year presented estimates of National Debt interest for each of the years 2024 to 2027. These are replicated in the table below. Updated estimates will be presented in Budget 2025 later this year.
|
Year |
National Debt Interest Estimates €bn |
|
2024 |
3.1 |
|
2025 |
3.5 |
|
2026 |
3.3 |
|
2027 |
3.5 |
379. Deputy Ged Nash asked the Minister for Finance the position with respect to the charging of VAT on bicycles, e-bikes and cycling safety equipment; the estimated cost to zero-rate VAT on these items; if it is possible to zero-rate those items; if he has sought sanction at a European level to do so; and if he will make a statement on the matter. [32893/24]
Amharc ar fhreagraWith regard to VAT on bicycles, e-bikes and cycling safety equipment the position is that the standard rate of VAT currently applies to all of them.
Following amendments to the VAT Directive in 2022 it is possible for a reduced rate to be applied to bicycles and e-bikes. However a zero rate cannot be applied. In Ireland the two reduced rates are 13.5% and 9%.
The Deputy should note that it is not possible to apply a reduced or zero rate to bicycle safety equipment. Therefore the standard rate must apply.
The estimated cost of reducing the VAT on bicycles and e-bikes to 13.5% is €7m. The estimated cost of reducing the VAT on bicycles and e-bikes to 9% is €11m.
Member States do not need to seek sanction from the EU Commission to apply a reduced rate of VAT however they must ensure that a reduced rate is applied to no more than 24 categories within Annex III of the VAT Directive.
As the Deputy will be aware, it is a longstanding 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.
