Written Answers Nos. 280-299
280. Deputy Pearse Doherty asked the Minister for Finance if he has considered amending section 126 (2B) of the Taxes Consolidation Act 1997 to ensure that adult dependant social welfare pensions could be paid directly to the adult dependant; to outline the wider implications and costs related to such an amendment; and if he will make a statement on the matter. [44733/24]
Amharc ar fhreagraSection 126 of the Taxes Consolidation Act 1997 (TCA) deals with the tax treatment of certain social welfare payments.
The Social Welfare Consolidation Act 2005 (SWCA) provides for the payment of the weekly state pension. The payment is made by the Department of Social Protection to an individual who fulfils the statutory criteria. The SWCA also provides for an increase in the amount of state pension where the beneficiary of the pension has a qualified adult dependent. The qualified adult portion is described as an “increase” in the pension and is payable in respect of a spouse, civil partner or cohabitant who is being financially maintained and whose income is not greater than a specified amount.
Section 12 of the Finance (No. 2) Act 2013 inserted subsection 2B into section 126 TCA. The subsection became effective from 1 January 2014, confirming the tax treatment of the qualified adult dependent increase. It provides that, for the purposes of the Income Tax Acts, any increase in the state pension in respect of a qualified adult dependent is treated as if it arises to and is payable to the beneficiary of the pension, that is, the main pension recipient.
The intention behind the amendment was to put beyond doubt that the beneficiary of a Department of Social Protection pension is assessable on the aggregate of the pension and the amount by which the pension is increased for a qualified adult dependent. This means that the pension payment is not subject to double taxation as the qualified adult increase is deemed to be part of the pension of the person beneficially entitled to the pension rather than a separate source of income for the qualified adult.
Only one employee (PAYE) tax credit is available in respect of the state pension, including the qualified adult dependent increase, and there is no entitlement to any increase in the amount charged to income tax at the standard rate as a result of the qualified adult dependent payment.
I currently have no plans to amend section 126 (2B) of the Taxes Consolidation Act 1997, as suggested by the Deputy.
Finally, I am advised by Revenue that as information in respect of increases in the State pension in respect of a qualified adult dependents are not reported separately to Revenue, there is no data available to Revenue from which to provide an estimate of the cost of the change outlined by the Deputy.
281. Deputy Pearse Doherty asked the Minister for Finance if he has considered amending section 119 (3) of the Value-Added Tax Consolidation Act 2010 to extend its provision to all VAT payments not just VAT repayment outside the State to allow for a refusal by the Revenue Commissioners to process any VAT repayment appealable to the third-party process of the Tax Appeals Commission; and if he will make a statement on the matter. [44734/24]
Amharc ar fhreagraSection 119(1) of the Value-Added Tax Consolidation Act 2010 lists certain specific matters which may be appealed to the Tax Appeals Commission, including the refusal by the Revenue Commissioners to approve a VAT refund application by a foreign trader under Section 101 of the Act.
Section 101(9) sets out the actions which must be taken by the Revenue Commissioners on receipt of such a refund application. In line with EU VAT law, with which Irish VAT law must comply, this provision requires the Revenue Commissioners to approve or reject such an application within 4 months of receiving it. It is within this context that section 119(3) provides that a failure by Revenue to decide on a Section 101 refund application within that timeframe is to be treated as a refusal of an application, and thus, can be appealed to the Tax Appeals Commission.
Section 119(1) of the Value-Added Tax Consolidation Act 2010 also allows a taxpayer aggrieved by a determination of the Revenue Commissioners in relation to a claim for repayment of VAT to lodge an appeal with the Tax Appeals Commission.
While the legislation does not specify a timeline for Revenue to make a decision on a domestic VAT repayment claim, I am informed by Revenue that, for the 2024 period to date, 87% of domestic VAT refunds are processed within 10 days, 92% within 1 month and 97% within 4 months. This processing time data highlights the importance Revenue attaches to dealing swiftly with refund claims. A low percentage of repayment claims take longer to complete, due to matters such as a compliance intervention being carried out on the claim, or a lack of taxpayer compliance.
Where a taxpayer is aggrieved by how their case is being managed by Revenue, they can make a complaint and request a review under Revenue’s Complaint and Review Procedures, details of which are outlined in “Revenue Complaint and Review Procedures Leaflet – CS4”, which is available on the Revenue website. These procedures allow for both independent internal and external review of a complaint.
Having regard to the various arrangements described above, the legislative provision suggested by the Deputy is not considered necessary.
282. Deputy Pearse Doherty asked the Minister for Finance if he has considered amending section 949I (6) of the Taxes and Consolidation Act 1997 to ensure that taxpayers lodging an appeal have a fair opportunity to make a case to a third party independent hearing, where a tax assessment is disputed; and if he will make a statement on the matter. [44735/24]
Amharc ar fhreagraThe Tax Appeals Commission (TAC) was established on 21 March 2016 following the enactment of the Finance (Tax Appeals) Act 2015, replacing the Office of the Appeal Commissioners. It is an independent statutory body tasked with providing a modern and efficient appeals process in relation to the hearing and adjudication of tax disputes. In carrying out its functions, the TAC is obliged to ensure that tax appeals are accessible, fair and conducted as expeditiously as possible.
Section 949I of the Taxes Consolidation Act 1997 provides for the notice of appeals by taxpayers to the TAC. Subsection (6) of section 949I provides that an appellant is not entitled to rely on any grounds of appeal that were not stated in a notice of appeal, unless the Appeal Commissioners are satisfied that there was a good reason for not stating those grounds at the time of filing the appeal.
I do not have any plans to amend section 949I(6) of the Taxes Consolidation Act 1997. I am satisfied that the appeals process is fair, efficient and accessible for the taxpayers who avail of it.
283. Deputy Pearse Doherty asked the Minister for Finance the estimated cost to the Exchequer in each of the years 2025 to 2030 to not proceed with any additional carbon tax increases, to undo 2024 carbon tax increases, to not proceed with any additional carbon tax increases and to undo 2023 and 2024 carbon tax increases and to not proceed with any additional carbon tax increases, in tabular form; and if he will make a statement on the matter. [44742/24]
Amharc ar fhreagraAs the Deputy will be aware Finance Act 2020 is the legislation underpinning the Programme for Government approach to carbon tax. Finance Act 2020 provides for multiannual increases in the carbon tax from the Budget 2020 headline rate of €26 per tonne of Carbon Dioxide emitted to a headline rate of €100 per tonne legislated to apply as a headline rate in 2030.
Annual carbon tax rates apply with effect from October each year for auto fuels with commencement delayed on other fuels until May of the headline year to allow for the winter heating season.
The estimated cost of not proceeding with carbon tax rate increases in each year from 2025 to 2030 and of undoing the 2023 and 2024 carbon tax rate increases would involve holding the carbon tax rate at the 2022 headline rate of €41 per tonne of carbon dioxide. As the Deputy will be aware in 2023 the carbon tax headline rate was €48.50, in 2024 it was €56 and the equivalent 2025 rate is €63.50 (applying with effect from 9 October 2024 to auto fuels and from 1 May 2025 to other affected fuels).
In July 2023 my Department published a paper examining the Potential Fiscal Impacts of the Transition to a Lower Carbon Economy in Ireland. The paper examined the potential fiscal impacts of current domestic climate action policies including commitments in the Climate Action Plan 2023 and the Programme for Government. The analysis provides an overview of the potential exchequer revenue which may be impacted either negatively or positively by current domestic climate action policies and is available online: www.gov.ie/en/publication/dd671-potential-fiscal-impacts-of-the-transition-to-a-lower-carbon-economy-in-ireland/.
Building on this work, my Department published a further paper in September 2024 focussing on carbon tax; Carbon Tax Projected Exchequer Revenue Estimates 2024-2030. This paper examines trends in carbon tax exchequer yields in Ireland over the last decade, and provides forward projected estimates of carbon tax yields over the next six years to 2030, in order to provide timely analysis of estimated trends and levels of expected exchequer receipts from carbon taxation. This paper is also available on my Department's website: www.gov.ie/en/publication/8e2d0-carbon-tax-projected-exchequer-revenue-estimates-2024-2030/.
The analysis in this paper examines how domestic climate change policies are expected to impact carbon tax yields, as our economy transitions to a low carbon economy in line with current climate action plan 2024 (CAP 24) measures. To examine the potential fiscal impacts that the transition may have on carbon tax yields in Ireland over the next six years, the analysis first identifies and provides an overview of carbon tax yields to date. Then, to provide some fiscal insights to inform policy, findings are presented from a scenario analysis of the potential impact that implementing CAP24 policy measure targets may have on carbon tax revenues from 2024 to 2030. This scenario analysis maps and links forward projected estimates of energy use and expected fuel requirements from the Sustainable Energy Authority of Ireland (SEAI) to carbon tax rates and exchequer net carbon tax receipts to examine the potential impact of the implementation of CAP24 actions between 2024 and 2030 based on the SEAI and the Environmental Protection Agency (EPA) ‘With Additional Measure’ (WAM) scenario and ‘With Existing Measure’ (WEM) scenario analysis.
On the basis of the WAM scenario and holding the carbon tax rate at the rate of headline 2022 rate of €41, the table below sets out the associated estimated cost of holding the carbon tax rate at the rate of €41 per tonne of carbon dioxide in years 2025 to 2030.
Estimated Cost (€ millions)
|
Year |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
|
Estimated Additional Revenue1 |
€777 |
€876 |
€957 |
€1,022 |
€1,066 |
€1,063 |
|
Estimated Additional Revenue if Carbon Tax rates change held at 2022 levels |
€378 |
€363 |
€345 |
€325 |
€305 |
€281 |
|
Estimated Cost |
-€399 |
-€513 |
-€612 |
-€697 |
-€761 |
-€782 |
1 Estimate of additional carbon tax generated as per analysis of September 2024 Department of Finance Paper (Annex Table 4)
It should be noted that this estimate is based on analysis which is a point in time exercise. As forecasted revenue is estimated using forward projected estimates of energy use from the SEAI and, any changes to projected energy use will impact forecasted revenue.
284. Deputy Éamon Ó Cuív asked the Minister for Finance if he has issued an instruction to the Revenue Commissioners to ensure that all public services and forms, including the former Revenue Commissioners form 12A, are still available to be lodged in physical form to the Revenue Commissioners instead of online only, as at present, in view of the fact that many people are not capable of making such return online, or do not have a computer or have access to broadband; if not, if he plans to do so; and if he will make a statement on the matter. [44750/24]
Amharc ar fhreagraAs the Deputy will be aware, Revenue is independent in relation to its operational activities. As such, I have no role in instructing Revenue on matters relating to those functions, including recommendations on its online services.
As set out in Revenue’s Customer Service Standards and Commitments, their business model is 'Digital First’, in line with the Public Service Reform Plan 2030. This approach recognises changing customer expectations and enables Revenue to provide online services on a 24/7 basis.
Revenue acknowledges that, while many customers prefer digital interaction, there are also individuals who need a more traditional service. While Revenue encourages taxpayers to avail of its easy-to-use online channels, it continues to facilitate any persons who may have difficulty in using these options, for example due to disability or to limited broadband access, by providing a range of telephone and appointment services in addition to accepting and responding to enquiries via standard post.
Revenue advises that the Form 12A was discontinued in 2016 and first employments should be registered via its online service myAccount.
However, where customers do not have access to online services or require assistance in registering a first employment, they can contact Revenue at:
• Registrations Unit helpline (01 7383630); or
• PAYE Helpline (01 7383636); or
• Call to one of its public offices in Dublin, Limerick, Cork or Galway.
It is not clear from the Deputy’s question whether he is aware of an individual taxpayer who is experiencing difficulties. If the Deputy wishes to provide further information to Revenue, it has assured me it will follow up on the matter and make every effort to solve any difficulties being encountered.
285. Deputy Ivana Bacik asked the Minister for Finance if he has considered the introduction of an insurance scheme (details supplied); if he has heard reports that 1 in 20 buildings is challenged when accessing flood insurance; and the options being considered by his Department to ensure that a scheme is in place to underwrite flood risk. [44812/24]
Amharc ar fhreagraAs Minister for Finance, I have policy responsibility for the development of the legal framework governing financial services regulation, including for the insurance sector. In terms of the challenges associated with obtaining flood cover, please be aware that the provision of such cover is a commercial matter for insurance companies, based on an actuarial assessment of the risks they are willing to accept. Government cannot interfere in the provision or pricing of insurance, or direct as to what cover is provided, as is reinforced by the EU framework for insurance (Solvency II Directive).
Current Government policy in relation to increasing flood insurance coverage is focused on the development of a sustainable, planned and risk-based approach to managing flooding problems. Accordingly, €1.3 billion has been committed to the delivery of flood relief schemes over the lifetime of the National Development Plan (NDP) to 2030. This will protect approximately 23,000 properties across various communities from river and coastal flood risk.
Separate to this, the Department of Finance, in its review of policy in relation to flood insurance previously examined the UK’s flood insurance scheme to underwrite flood risk, known as “Flood Re”. This focused on the applicability of the Flood Re initiative for flood cover in Ireland and concluded this approach could lead to an increase in the cost of insurance and a potential financial exposure to the State. Given that the Flood Re system depends on the UK private reinsurance market, there is currently no evidence that the Irish reinsurance market could sustain any form of a Flood Re model. Furthermore, the scale of the UK home insurance market means it is in a position to support the financial impact of Flood Re across policyholders.
Furthermore, it should also be noted that any State insurance scheme would be required to comply with the same prudential rules as private companies, as set out in the Solvency II Directive, which means that the cost would need to reflect the risk involved. Such an approach could decrease competition, with insurers potentially discontinuing certain other lines if there is a view the State will insure these risks. We need to guard against introducing idiosyncrasies into the Irish market which would work against attracting further competition / entrants into the Irish market.
I am conscious that the Central Bank of Ireland recently conducted analysis of the flood protection gap in Ireland and published its Flood Protection Gap Report 2024. As the Deputy has noted, one of the key findings of this Report is that 1 in 20 buildings is challenged when accessing flood insurance. It should be noted that according to EU level data, this average rate of flood cover is above average relative to the EU. Importantly, the Report also notes that there is no single solution to closing the flood protection gap and it notes that Ireland has “broadly managed flood risk to date”.
However, it is acknowledged that some households are still experiencing difficulties, particularly in areas with demountable flood defences which require varying degrees of human intervention in their installation. Further, as with other aspects of climate change, it is also acknowledged that it cannot be assumed that current approaches will remain viable.
In this context, any Irish solution needs to specifically address the nature of the Irish protection gap.
In order to improve flood coverage levels, particularly in areas with demountable defences, the Department of Finance will continue to (i) encourage further collaboration and information sharing between the relevant stakeholders (including through existing channels such as the Insurance Ireland/OPW MoU Working Group); and (ii) engage with all relevant State bodies to consider how risks relating to the flood insurance protection gap can be mitigated (including for example: through the mitigation and adaptation work carried out by the OPW; and as part of the planning and development process). Our approach will seek to ensure the market remains involved in the provision of cover and avoid any moral hazard where the Exchequer becomes responsible for flood insurance cover.
Recognising that the long-term risk of climate change on insurers and insurability, the Department of Finance continues to monitor international developments, engage with the Central Bank of Ireland, the insurance industry and actively participate in cross-departmental working groups on insurance. It is important to note in this regard that the European Commission, IMF, EIOPA and the OECD are separately examining climate risk impacts for insurance and the concept of insurance protection gaps, with recommendations for policymakers to emerge in time. It is important that developments here align with those across the EU so the Irish market is not ‘out of step’ with others. Finally, I and Minister of State Richmond, along with our officials, will continue to engage on all aspects of insurance reform, including flood cover issues. These matters remain a priority for this Government and efforts continue to be made to encourage a responsive approach from the insurance industry.
286. Deputy Catherine Murphy asked the Minister for Finance the number of mobile phones issued to staff in 2022, 2023 and to date in 2024; and the total costs expended by his Department on handsets and phones bills over the same timeframe. [44860/24]
Amharc ar fhreagraI have been advised by the Office of Government Chief Information Officer (OGCIO), that the number of mobile phones issued to staff within my department for the years 2022, 2023 and 2024 to date is as follows:
|
- |
2022 |
2023 |
2024 |
|
New Handsets |
64 |
72 |
31 |
The total cost incurred by my department for mobile devices and phone bills in 2022, 2023, and 2024 to date is as follows:
|
- |
Total Cost of Handsets (ex VAT) |
Total Cost of Phone Bills (ex VAT) |
|
2022 |
€13,677.60 |
€48,807.77 |
|
2023 |
€19,748.57 |
€48,407.10 |
|
2024 |
€8,116.52 |
€32,881.38 |
I wish to advise the Deputy that:
• the figures for 2024 are inclusive up to end of October 2024.
• in some cases handset costs are amortised over the course of a number of months, as part of a package on the mobile phone bill. As such the cost of these handsets will appear under the heading: total cost of phone bills, rather than under the heading total cost of handsets .
287. Deputy Michael Healy-Rae asked the Minister for Finance to provide assistance regarding insurance issues for a youth organisation (details supplied); and if he will make a statement on the matter. [44879/24]
Amharc ar fhreagraAt the outset, it is important to note that neither the Minister for Finance, nor the Central Bank of Ireland, can intervene in the provision or pricing of insurance products, or compel any insurer operating in the Irish market to provide cover to specific individuals or organisations. This position is reinforced by the EU framework for insurance (the Solvency II Directive) which specifically prohibits Member States from doing so.
Notwithstanding this, Government is acutely aware of the concerns felt by many sectors, including the one highlighted by the Deputy, regarding the cost and availability of insurance. Officials from the Department of Finance have been in contact with a wide range of stakeholders in the motorcycle racing sector, including the organisation mentioned. The issue has also been raised with Insurance Ireland, major insurers in the State and other insurance intermediary groups such as managing general agents (MGAs).
It is a feature of the Irish insurance market that some smaller sectors, including motorcycle racing, have traditionally been dependent on specialist UK providers passporting into Ireland. As a consequence of the UK’s decision to leave the EU, this practice has now ended and it has become more expensive and difficult for niche underwriters from the UK to provide their products here. This has been exacerbated by the small size of some of these sectors, meaning that just one or two large or catastrophic claims can negatively impact insurance capacity for an extended period of time.
The Government has prioritised making insurance more accessible and competitive over the past several years. It has implemented a thorough program of reform involving the whole of government. The Action Plan for Insurance Reform sets out 66 actions that aim to improve both the cost and availability of this key financial service. The most recent Implementation Report shows that approximately 95 per cent of these actions have been either delivered or initiated.
In conclusion, I wish to reassure the Deputy that it is the my intention to continue to work with my Government colleagues to ensure that the implementation of the Action Plan will continue to have a positive impact on the affordability and availability of insurance for all groups, including sporting clubs and organisations.
288. Deputy Niall Collins asked the Minister for Finance for an update on a matter (details supplied); and if he will make a statement on the matter. [44881/24]
Amharc ar fhreagraSections 100 and 101 of the Finance Bill 2024 (as initiated) provide for the introduction of a revised form of relief from Capital Acquisitions Tax (CAT) for gifts and inheritances of agricultural property where certain conditions are met.
I will bring an amendment at Committee stage of the Finance Bill to provide that these provisions will be subject to a commencement order. Subject to the enactment of the Bill and commencement of these provisions, the revised agricultural relief will be provided for in a new section 89A of the Capital Acquisitions Tax Consolidation Act (CATCA) 2003. It will replace the existing agricultural relief that is provided for in section 89 of the CATCA 2003.
The revised agricultural relief will differ from the existing agricultural relief in a number of respects.
A key change is the proposed introduction of two additional conditions, which relate to the ownership and use of the agricultural property prior to the date of the gift or inheritance.
The first condition is that the person from whom the beneficiary takes the gift or inheritance (the “disponer”) must have owned the agricultural property for a minimum period of 6 years prior to the date of the gift or inheritance.
The second condition is that the agricultural property must have been used for the purposes of farming by the disponer or a person to whom the property was leased in the 6 years prior to the date of the gift or inheritance.
These sections will be subject to a ministerial commencement order. This will allow time for further engagement and consultation with stakeholders, and ensure that there are no unintended consequences in relation to this measure, which is targeted at transfers of agricultural property from one generation of farmers to the next.
I can confirm that no changes are proposed in relation to the categories of agricultural property that qualify for relief. Accordingly, as is the case with respect to the existing relief, the revised relief will be available in respect of a farmhouse provided it is proportionate in size and character to the requirements of the farming activities subject to the qualifying conditions of the relief being met.
Further information in relation to the application of the existing agricultural relief is available on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/capital-acquisitions-tax/cat-part11.pdf
I am advised that Revenue will be publishing detailed guidance on the operation of the revised relief, including examples, once the provisions come into operation.
289. Deputy Paul Donnelly asked the Minister for Finance if he met the US treasury secretary during his recent visit to Washington DC. [45046/24]
Amharc ar fhreagraAs Ireland’s Governor at the International Monetary Fund (IMF) and World Bank Group, I travelled to Washington D.C. in October to attend the 2024 IMF-World Bank Annual Meetings. These meetings provided me with a valuable opportunity to engage with finance ministers from around the world, along with leading figures from the IMF and World Bank to discuss current and emerging economic, fiscal and monetary developments.
While US Treasury Secretary Yellen and I were attendees at a number of different Ministerial engagements during my visit, I did not have a bilateral meeting with Ms. Yellen on this occasion.
290. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised by increasing stamp duty on any residential property other than the primary residence to 6%; the estimated additional revenue raised by each percentage increase; and if he will make a statement on the matter. [45101/24]
Amharc ar fhreagraStamp Duty is a tax on the documents which provide for the transfer of property, rather than a tax on individual property transfers. Where a document is chargeable with Stamp Duty, it is calculated on the total consideration paid for any property that is being transferred by virtue of that document.
I am advised by Revenue that information that identifies the primary residence is not available for statistical analysis on the Stamp Duty returns. Therefore it is not possible to provide the information sought by the Deputy.
291. Deputy Marc Ó Cathasaigh asked the Minister for Finance his views on the increase in the exemption from income tax from €18,000 to €40,000 for persons aged over 65, whose sole income is pension income, given that the exemption rate has not been increased in years, and has been eroded by inflation and the cost of living; and if he will make a statement on the matter. [45105/24]
Amharc ar fhreagraThe income tax age exemption applies for any year of assessment where an individual is aged 65 years or over and his or her total income does not exceed €18,000 per annum. Where an individual is a married person or civil partner and is jointly assessed to tax, the age exemption will apply where either individual is aged 65 or over and where the couple’s total income does not exceed €36,000 per annum. The relevant income thresholds may be increased further if the individual has a qualifying child. The thresholds are increased by €575 in respect of both the first and second child, and €830 in respect of each subsequent child.
Additionally, marginal relief may be available where the individual’s or couple’s income exceeds the relevant exemption limit but is less than twice that amount. Where marginal relief applies the individual or couple is taxed at 40 per cent on all income above the exemption limit to a ceiling of twice the exemption limit. The system of marginal relief ensures that in cases where an individual's or couple’s income rises above the exemption threshold that their net income will not decline, as the 40 per cent income tax rate only applies to the proportion of income above the threshold.
It should be noted that once the income exceeds twice the exemption limit, marginal relief is no longer available and the individual pays tax under the normal tax system. However, where the individual’s or couple’s income is greater than the exemption limit but below twice that limit, the taxpayer is entitled to the benefit of the more favourable treatment between the use of marginal relief or the normal tax system of credits and bands.
I have no plans to increase the age exemption limits. However, in circumstances where an individual or couple no longer benefits from the age exemption or marginal relief they will benefit from the increases to the main personal tax credits in recent Budgets.
The increases to the main personal tax credits in Budget 2025 (€125 increase to the single, employee and earned income credits and a €250 increase to the credit for married couples/civil partnerships) means that the effective entry point to income tax has increased for all taxpayers, including those aged 65 or older. From 2025, the effective entry point to income tax for an individual in receipt of the single person credit, employee/earned income credit and the age credit will increase by €1,250 per annum from €19,975 to €21,225 per annum. This means that married couples or civil partners can potentially earn up to €42,450 per annum before they pay income tax in 2025, depending on their particular circumstances.
In addition, it is important to take into account that the current tax arrangements for persons aged 65 or older compare favourably with the tax treatment of the generality of taxpayers. Persons aged 65 or over may also avail of the age tax credit, which currently amounts to €245 per year for single persons or €490 per year for married couples or civil partners. Reduced rates of USC also apply for persons aged 70 or older where their total income is €60,000 or less per annum. Social welfare income such as the State Contributory Pension and State Non-Contributory Pension are excluded from the calculation when determining if an individual’s income has exceeded the €60,000 income threshold. Furthermore, the State Contributory Pension and the State Non-Contributory Pension are not chargeable to USC or Pay Related Social Insurance.
It should be noted that the Commission on Taxation and Welfare recommended that age should be removed as a factor for determining the charge to income tax and USC. The report stated that the determination of an individual’s tax treatment based on age narrows the base and breaches the concept of horizontal equity, whereby those with similar income should pay the same proportion of that income in taxes. It also breaches the concept of intergenerational equity. Further details are set out in the Report of the Commission, at the following link: www.gov.ie/en/publication/7fbeb-report-of-the-commission/
Finally, as part of the Personal Tax Review published on last year’s Budget Day, my Department set out further analysis of the recommendations of the Commission on Taxation and Welfare, including in respect of the age exemption limits. The Report is available at the following link: www.gov.ie/pdf/?file=https://assets.gov.ie/273335/96f70eb1-64e1-4f02-9096-e36f306a048b.pdf#page=null
292. Deputy John Paul Phelan asked the Minister for Finance if he plans to amend the regulations that apply to duty free allowances to address the anomaly whereby a 17-year-old would be permitted to bring tobacco and alcohol into the country through duty free, but would be banned from purchasing tobacco until the age of 21 in their local shop under the proposed provision of the Public Health (Tobacco) (Amendment) Bill 2024; and if he will make a statement on the matter. [45137/24]
Amharc ar fhreagraArticle 10 of Council Directive 2007/74/EC on the exemption from value added tax (VAT) and excise duty of goods imported by persons travelling from third countries, provides that exemptions on tobacco products and alcohol do not apply to travellers under 17 years of age. This Directive is transposed in the European Communities (Tax Exemption for certain non-commercial goods imported the personal luggage of travellers from Third Countries) Regulations 2008. These regulations include the prohibition of travellers under 17 years availing of the exemption from the payment of VAT and excise on tobacco products and alcohol.
Under the provisions of the Directive, the onus is on the individual to comply with the limits as it is travelling in their personal luggage. Any changes to the current enforcement of the duty-free regime would be an issue to be considered at EU level under the terms of the Directive.
I am assured that Revenue recognises the risks associated with the availability of duty-free tobacco and take appropriate measures to mitigate those risks. Revenue has a programme of engagement with duty free operators, airlines, ferry companies and those who sell duty-free goods, to ensure that they are kept up to date with the regulations governing duty-free sales. Revenue also has controls in place in the airports and ports to combat abuses of the duty-free regime. Where passengers are encountered carrying goods in excess of their duty-free allowances and have not declared same to Customs, these excess goods may be seized. Resources allocated to such work are adjusted and realigned in response to changes in the level of risk in different sectors.
293. Deputy John Paul Phelan asked the Minister for Finance the number of reports relating to the suspected import or sale of non-duty paid tobacco products which were received by the Revenue Commissioners from An Garda Síochána in each of the past five years; and how such referrals are dealt with by the Revenue Commissioners. [45139/24]
Amharc ar fhreagraI am assured that Revenue is committed to targeting the illicit tobacco trade. It implements a range of measures to identify and target the smuggling, supply or sale of illicit tobacco products, with a view to disrupting the supply chain, seizing the products and where possible, prosecuting those involved. Revenue’s strategy also involves developing and sharing intelligence on a national, EU and international basis, the use of analytics and detection technologies and ensuring the optimum deployment of resources on a risk-focused basis. Revenue continues to adopt an agile response to this threat and continually monitors trends in the illicit tobacco trade and adjusts its actions and redeploys its resources in response to new developments or methodologies employed by the criminal gangs involved in that trade.
I am informed by Revenue that it has a close working relationship with An Garda Síochána, which includes the sharing of intelligence in relation to the suspected illicit tobacco trade. Any reports or intelligence received from An Garda Síochána is thoroughly investigated by Revenue and any appropriate action is taken. I am advised that reports and intelligence received by Revenue from An Garda Síochána are not held in a format that would facilitate the collation of the statistics requested.
The smuggling of tobacco products has a transnational and cross border dimension and in addition to Revenue’s ongoing cooperation with An Garda Síochána, I am advised that Revenue also works closely with its counterparts in other jurisdictions including colleagues in Northern Ireland through the Cross Border Joint Agency Task Force (JATF) and international bodies including OLAF (the EU’s anti-fraud agency), Europol and the World Customs Organisation.
Revenue optimises media engagement in terms of successful prosecutions, significant seizures and enforcement initiatives, ensuring the general public is aware of the commitment by Revenue to tackling the illicit cigarette and tobacco trade and to deter those involved. To further encourage the general public to engage with Revenue in its efforts targeting the shadow economy and the supply of illegal tobacco products, Revenue includes a message on all press releases relating to tobacco products notifying that businesses or members of the public can contact Revenue in confidence on the free phone number 1800 295 295 at any time.
I am pleased to acknowledge that Revenue has achieved considerable success in tackling the illicit tobacco trade. In 2023, Revenue had 5,164 seizures of cigarettes valued at €55.7m and 1,673 seizures of tobacco with an estimated value of €7.7m. To the end of September 2024, Revenue had 3,801 seizures of cigarettes valued at €74.8 million and 1,147 seizures of tobacco valued at €30.7m. Further successes, highlighting Revenue’s approach to the illicit tobacco trade include the detection and dismantling of an illicit commercial cigarette factory in Dublin in February 2024.
Revenue’s high detection rate is attributable to its multi-faceted tobacco strategy, continued cooperation and intelligence sharing with other national and international law enforcement agencies, its highly trained staff and its advanced profiling methods and strategic use of appropriate detection technology and assets, particularly its highly effective detector dogs.
I am assured that Revenue is aware of the threat that tobacco smuggling poses to health, to legitimate business interests and to the Exchequer and I commend Revenue and all the relevant State agencies for their work in this important area.
294. Deputy Michael McGrath asked the Minister for Finance the position regarding an application for clearance in respect of a probate case (details supplied); and if he will make a statement on the matter. [45150/24]
Amharc ar fhreagraI am advised by Revenue that a letter of clearance, which confirms that there are no outstanding returns/liabilities arising on a deceased person’s estate, should be requested by the personal representative prior to distributing the assets of the estate.
In respect of the estate concerned, Revenue has confirmed that the application for clearance has been approved and that the letter of clearance issued to the executor on 1 November 2024.
295. Deputy Violet-Anne Wynne asked the Minister for Finance if an inflationary analysis has been conducted regarding the once off payments included in Budget 2025; and if he will make a statement on the matter. [45288/24]
Amharc ar fhreagraInflation has eased considerably this year and has been running at or below 2 per cent since March. Indeed, inflation was just 0.1 per cent in October, among the lowest rates in the euro area. While much of the easing in headline inflation is due to falling energy prices, core inflation (i.e. excluding energy and food prices) has also eased considerably and is now below 2 per cent.
Despite the easing in inflation, I am acutely aware that price levels remain elevated. That is why Budget 2025 included a cost of living package, designed to support the most vulnerable and ease the financial burden over the winter months. One-off measures in Budget 2025, while still significant at €2.2 billion, are lower than the €2.7 billion allocated last year. This will help boost demand in the economy and will have a relatively modest positive impact on inflation over the coming period.
In general, the overall fiscal package will help support further improvements to the supply-side of the economy which will help address underlying inflationary pressures over the medium-term. In other words, eliminating bottlenecks will help reduce price pressures.
On the taxation side, a key priority of Budget 2025 is to avoid workers paying additional tax simply because they move through higher tax brackets due to wage growth. On the expenditure side, it is important to note that the growth rate in public spending next year is set to decelerate relative to this year.
I believe that we have got the balance right between supporting vulnerable households, continuing to deliver high-quality public services and improvements to our capital infrastructure, while minimising the impact of budgetary policy on inflation.
296. Deputy Catherine Murphy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the status of the National Flood Forecasting and Warning Service; the amount expended on the development of the service to date; the schedule of the persons and entities that have contributed to its development; and the date on which it is targeted to go live for the general public to access the service. [44927/24]
Amharc ar fhreagraIn 2016, the Government agreed to the establishment of a National Flood Forecasting and Warning Service (NFFWS) to enable members of the public and local authorities take more preparatory action to reduce the impact of flooding.
A Steering Group, which is comprised of representatives from the OPW (Chair), Met Éireann, the National Directorate for Fire and Emergency Management (NDFEM) of the Department of Housing, Local Government and Heritage, the Department of Agriculture, Food and the Marine and the County and City Management Association, is steering and supporting the establishment of the new Service.
A staged approach is being taken to develop the NFFWS. International experience has shown that the provision, operation and maintenance of forecasting and warning services is resource-intensive, complex and has a relatively long development timeline.
Stage I (establishment phase) of the multi-stage development of the NFFWS has been completed and focused on National and Catchment level fluvial (river) and coastal flood forecasting. A Flood Forecasting Centre has been established in Met Éireann, with flood forecasts, flood advisory services, hydrological observations and Daily Flood Guidance Statements being provided to local authorities and other state agencies.
The NFFWS is providing information and guidance to decision making stakeholders such as the Local Authorities, the NDFEM and other agencies. The forecasting information is tailored for these stakeholders providing valuable information regarding the likelihood of river and/or coastal flooding which can be utilised by these stakeholders to manage flood risk and make decisions pertaining to emergency response measures. Met Éireann has provided training to the Local Authorities and other stakeholders on the use of the system and on the interpretation of the forecasts.
The next stage (Stage II) will further enhance the NFFWS leading to improved granularity and accuracy of forecasts and proposals involving the installation of new rainfall and flow gauges, improvements to the rainfall radar network and re-calibration of models after notable flood events amongst others. This will dovetail with the development of the warning aspect of the service.
Proposals and recommendations for the further development of the NFFWS are being prepared and will be brought to Government for consideration as soon as possible. Total expenditure to date, on the establishment and development of the NFFWS is €6.6m.
The timeline for when the flood forecasting information can be made available to the public, is currently under consideration.
297. Deputy Francis Noel Duffy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform when the pension increase for retired staff of 2.5% for Eir from 1 July 2024, and a 2% increase for An Post from 1 January 2024, will be implemented; if payments will be commenced before Christmas; and if he will make a statement on the matter. [43964/24]
Amharc ar fhreagra304. Deputy Niall Collins asked the Minister for Public Expenditure, National Development Plan Delivery and Reform for an update on a matter (details supplied); and if he will make a statement on the matter. [44143/24]
Amharc ar fhreagraI propose to take Questions Nos. 297 and 304 together.
The procedures for Ministerial consent of pension increases in commercial semi state bodies are outlined in the Annex on Remuneration and Superannuation of the Code of Practice for the Governance of State Bodies, which was introduced by Department of Public Expenditure and Reform Circular 16/2021. The Code of Practice provides that it is initially a matter for each Government Department, under whose aegis responsibility for individual commercial semi state bodies fall, to consider and approve any pension increase proposals and following this to seek the consent of the Minister for Public Expenditure, NDP Delivery and Reform.
Rule 13 of the An Post Main Superannuation Scheme provides that the Company may grant such increases in pensions and preserved pensions under the Scheme as may be authorised from time to time by the Minister for the Environment, Climate and Communications, with the concurrence of the Minister for Public Expenditure, NDP Delivery and Reform. An Post wrote to the Department of the Environment, Climate and Communications on 21 June 2024, requesting approval to increase pensions in payment and deferred pensions by 2.0% effective from 1 January 2024. The Department of the Environment, Climate and Communications wrote to my Department on 26 September 2024 requesting my consent for the increase. I granted my consent on 15 October 2024 and the Department of the Environment, Climate and Communications was notified on that date of my consent.
Eir wrote to the Department of Environment, Climate and Communications on 19 June 2024 to request Ministerial consent for a 2.5% discretionary pension increase, effective from 1 July 2024. The Department of the Environment, Climate and Communications wrote to my Department on 2 September 2024 requesting my consent and I granted my consent on 10 October 2024 in accordance with the Code of Practice. The concurrence of the Minister for Finance was also sought for this increase on 10 October 2024, as required under Section 10 of the Telecom Éireann Main Superannuation Scheme 1988, and the concurrence of the Minister for Finance was provided on 30 October 2024. The Department of Environment, Climate and Communications was notified of these Ministerial approvals on this date.
It is now a matter for both companies to arrange the payment of the pension increases from the effective dates. Further queries should be directed to the respective company.
298. Deputy Michael Healy-Rae asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if there are plans to update the flood risk map in an area in County Kerry (details supplied); and if he will make a statement on the matter. [43991/24]
Amharc ar fhreagraThe Department of Finance has overall responsibility for policy matters in relation to insurance, including flood insurance. Government policy on flood insurance is centred on significant investment in sustainable flood risk management and the exchange of information between the insurance industry and the Office of Public Works (OPW) on completed flood relief schemes, as outlined under. Investment of €1.3 billion for the delivery of flood relief schemes is provided for over the lifetime of the National Development Plan (NDP) to 2030. In this context, the number of flood relief schemes at design and construction, has trebled to 100. The work will protect approximately 23,000 properties across various communities from river and coastal flood risk.
The Department of Finance has advised that it continues to engage with the insurance industry on all aspects of insurance reform, including flood cover issues. These matters are a priority for the Government and efforts continue to be made to encourage a responsive approach to the provision of flood insurance from the insurance industry.
The flood maps available for this location were produced under the OPW’s National Indicative Fluvial Mapping (NIFM) project, that commenced in 2019, with the maps published on the OPW website, www.floodinfo.ie, in 2020. The NIFM flood extents were primarily produced to carry out a national scale preliminary flood risk assessment.
The NIFM flood extents only provide an indication of areas that may be liable to flooding. They are not based on detailed analysis and are not necessarily locally accurate. In this regard, they are not suitable to assess the flood risk associated with individual properties or point locations, or to replace a detailed site-specific flood risk assessment.
The Disclaimer and Conditions for Use of OPW flood maps, on www.floodinfo.ie, includes a provision that users of the website must not use the flood maps, or any other content of the website for commercial purposes. As such, the Disclaimer prevents insurance companies from using the flood maps generated by the OPW.
The insurance industry has its own flood modelling tools for assessing the level of risk that it is willing to underwrite in relation to individual properties. Insurance Ireland, the representative body of the insurance industry, has highlighted to the OPW that the insurance industry does not use the OPW flood maps to inform its flood modelling. The decision on whether to offer insurance, the level of premiums charged and the policy terms applied are matters for individual insurers. Insurance companies make commercial decisions on the provision of insurance cover based on their assessment of the risks they would be accepting on a case-by-case basis. Neither the Minister for Finance or the Central Bank of Ireland can direct the provision or pricing of insurance products, in accordance with the EU framework for insurance (Solvency II Directive).
Insurance Ireland operates an Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance, which can be contacted at 01 676 1914 or feedback@insuranceireland.eu. Similarly, Brokers Ireland, the representative body for insurance brokers in Ireland, has access to a wide range of providers and products, and can offer advice for customers when sourcing cover. Brokers Ireland can be reached at 01 661 3067. Furthermore, where an individual considers that they have been treated unfairly, they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO can be contacted either by email at info@fspo.ie, or by telephone at 01 567 7000.
The OPW has a role to assist insurance companies to take into account the protection provided by completed flood defence schemes. In this regard, the OPW has a Memorandum of Understanding (MoU) with Insurance Ireland. A working group meets to discuss the sharing of data on completed flood relief schemes under the terms of the MoU. The membership of the Working Group includes representatives of the OPW, Insurance Ireland, industry members and the Departments of Finance and Housing, Local Government and Heritage. The MoU sets out principles of how the two organisations work together to ensure that appropriate and relevant information on these completed schemes is provided to insurers to facilitate, to the greatest extent possible, the availability to the public of insurance against the risk of flooding. While the MoU does not guarantee the availability of insurance, Insurance Ireland members have committed to take into account all information provided by the OPW when assessing exposure to flood risk within these protected areas.
299. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the number of WTE and HTE staff, by grade, working in the Standards in Public Office Commission; and the estimated cost of increasing staffing by 50% at each grade. [44050/24]
Amharc ar fhreagraI am advised by the Office of the Ombudsman that the Standards in Public Office Commission (SIPO), established in 2001, is an independent, non-partisan body responsible for overseeing the Ethics in Public Office Acts, the Electoral Act 1997 (as amended), the Oireachtas (Ministerial and Parliamentary Offices) (Amendment) Act 2014, and the Regulation of Lobbying Act 2015. The Standards Commission is supported in its work by a Secretariat, led by the Head of the Secretariat to the Commission. Secretariat staff are provided by the Office of the Ombudsman.
There are 20 staff working in the Secretariat to the Standards in Public Office Commission. That is represented by 19.4 full time equivalent (FTE) grades as follows:
• 3 x Clerical Officers;
• 3.6 x Executive Officers;
• 3.8 x Higher Executive Officers;
• 4 x Administrative Officers;
• 4 x Assistant Principal Officers; and
• 1 x Principal Officer.
The estimated cost of increasing staffing by 50% at each grade would be €800k per year. This figure is based on the FTE of current staffing and the max of the salary scale for each grade. It is also inclusive of employer PRSI. It represents salary costs only and does not account for the additional supports, e.g. hardware, software, accommodation needs, necessitated by an increase in staffing. The figures do not account for the corporate services staff and related salary costs which provide support to SIPO. SIPO is co-located with the Office of the Ombudsman, the Office of the Information Commissioner, the Office of the Environmental Information Commissioner, the Commission for Public Service Appointments and the Office of the Protected Disclosure Commissioner. These Offices each carry out separate and distinct statutory functions but are supported by a Corporate Services Unit which comprises of HR, ICT, Finance, Procurement, Accommodation and Legal Services staff. This gives functional independence in the core work, but allows each statutory function to realise the benefits and economies of scale of working for a larger organisation.
