Tax Code

Monday, 9 September 2024

Ceisteanna (363)

Colm Burke

Ceist:

363. Deputy Colm Burke asked the Minister for Finance if consideration will be given to reviewing the deemed disposal tax on exchange traded funds, ETFs, taking into account that the 41% tax on ETF gains every eight years is discouraging long-term investment and hindering the financial growth of lower-income investors and first-time young investors, in view of the fact that a reduction or eradication of this tax will benefit Irish investors and taxes on gains that compound over decades would be more likely to see higher tax revenues than the current tax receives; and if he will make a statement on the matter. [35402/24]

Amharc ar fhreagra

Freagraí scríofa

Minister for Finance

I note the Deputy's query in relation to the taxation of exchange traded funds (ETFs) and whether any changes are being considered in this regard.

Last year, on 6 April 2023, my Department published the Terms of Reference for a review of Ireland’s funds sector - ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’. The review is wide ranging and looking at a range of issues relevant to the funds sector, taking into account the recommendations in this area of the Commission on Taxation and Welfare 2022 report, Foundations for the Future.

A draft report was submitted to me for consideration during the summer, in line with the Review's Terms of Reference. The exact timing of the publication of the Funds Review report will be confirmed in due course.

As with all areas of tax policy, the taxation of savings and investments will be kept under review throughout the annual budgetary and Finance Bill process.