Written Answers Nos. 248-267
248. Deputy Barry Heneghan asked the Minister for Finance the measures that will be introduced to reduce taxation on rental income to encourage more landlords to remain in the market; and if he will make a statement on the matter. [3579/25]
Amharc ar fhreagraAs the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances.
However, and as the deputy may be aware, the Residential Premises Rental Income Relief (RPRIR) provides relief, at the standard rate, on a portion of a landlord’s residential rental income. The relief is €3,000 in the tax year 2024, €4,000 in the tax year 2025 and €5,000 in the tax years 2026 and 2027, which is equivalent to a tax credit of up to €600, €800 and €1,000 respectively. This measure is effective until the end of 2027.
249. Deputy Seán Crowe asked the Minister for Finance whether there is a backlog of pension declarations with the Revenue Commissioners owing to difficulties in accepting pension files from private companies; if so, the number of individuals affected; and if he will make a statement on the matter. [2241/25]
Amharc ar fhreagraUnfortunately it has not been possible to obtain the information requested by the Deputy in the time available to provide a reply. Revenue are working on the request and I will arrange to provide the information requested to the Deputy directly once it is has been received by my Department.
250. Deputy Sorca Clarke asked the Minister for Finance if he has considered reducing the VAT for beauty services along with hairdressers; and if he will make a statement on the matter. [2254/25]
Amharc ar fhreagra253. Deputy Claire Kerrane asked the Minister for Finance if plans to reduce the VAT rate for the hospitality sector will include a service (details supplied); and if he will make a statement on the matter. [2284/25]
Amharc ar fhreagra264. Deputy Rose Conway-Walsh asked the Minister for Finance if the lower VAT rate which media reports have indicated, will be applicable to hairdressers and to the beauty industry; when these changes will come into effect; where further information can be found; and if he will make a statement on the matter. [2698/25]
Amharc ar fhreagra275. Deputy Paula Butterly asked the Minister for Finance the plans, if any, in place to reduce the current 13.5% VAT rate to the beauty industry; and if he will make a statement on the matter. [2957/25]
Amharc ar fhreagraI propose to take Questions Nos. 250, 253, 264 and 275 together.
As the Deputies will be aware, in making any decision in relation to VAT rates or other taxation measures, the Government must balance the costs of the measures in question against their impact and the overall budgetary framework. All decisions in relation to changes to VAT rates, including the full scope of any reduction, will therefore be made in line with this framework.
However, the Deputies should note that the EU VAT Directive, with which Irish VAT Law must comply, contains provisions under Annex III which allows for a reduced rate of VAT on specific goods and services. While hairdressing is included in Annex III to allow for a reduced rate, beauty salons are not listed.
However beauty salons, which provide services consisting of the care of the human body, including beauticians, are subject to the 13.5% rate.
This arises from the fact that many of goods and services to which Ireland applies a reduced rate of VAT, including services related to care of the human body, have their basis under an EU derogation that provides that as Ireland applied a reduced rate to these items on 1 January 1991, we are entitled to continue applying that reduced rate to those items. However, this is conditional on the rate being no less than 12%. These are known as ‘parked’ items, and as the services provided by beauticians are part of these parked items, it is not possible for Ireland to apply the rate of 9% to them.
251. Deputy Liam Quaide asked the Minister for Finance his plans to apply a reduced rate of VAT to bottled water; and if he will make a statement on the matter. [2255/25]
Amharc ar fhreagra257. Deputy Pat Buckley asked the Minister for Finance if he will arrange for Revenue to issue a VAT refund to individuals who are living with a 'boil water notice' (details supplied), using bottled water that they are forced to purchase; and if he will make a statement on the matter. [2396/25]
Amharc ar fhreagra292. Deputy Noel McCarthy asked the Minister for Finance if he will consider the establishment of a VAT refund on the purchase of bottled water for domestic households who continue to be affected by prolonged boil water notices, possibly by notifying the Revenue Commissioners directly of the affected Eircode; and if he will make a statement on the matter. [3089/25]
Amharc ar fhreagraI propose to take Questions Nos. 251, 257 and 292 together.
The VAT rating of goods and services is subject to the requirements of the EU VAT Directive with which Irish VAT law must comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within those listed in Annex III, in respect of which Member States may apply a lower rate.
Ireland applies the standard rate of VAT, which is currently 23%, to the supply of drinks/beverages generally, including bottled water.
Milk and milk alternative drinks are subject to the zero rate of VAT, as are tea and coffee in non-drinkable form (for example, tea bags or coffee granules). In certain circumstances, the reduced rate of VAT (13.5%) can apply to the supply of tea and coffee (supplied in drinkable form), and fruit juices where they are supplied in the course of a catering or restaurant service.
Any suggestion for extending the application of a reduced VAT rate to bottled water would need to be considered carefully having regard to a range of factors including the impact on Exchequer revenues, any potential market distortions and fiscal neutrality concerns, the environmental impact of increased use of plastic, and the practical concerns that it would be difficult to administer and could increase the scope for manipulation of the VAT system and opportunities for tax avoidance.
It should be noted that as with any VAT reduction there is no guarantee that VAT reductions would be passed to the consumer.
As regards the suggestion to introduce an arrangement to refund VAT on bottled water incurred by consumers living within certain Eircodes, such a measure would not be compatible with the EU VAT Directive. Under EU law, generally only businesses that are registered for VAT and charge VAT on their supplies of goods and services are entitled to reclaim the VAT incurred on their business costs. There are restrictions, though, in relation to certain items, including drinks, so that these cannot be reclaimed where the item is purchased for use of the business owner, his or her employees or agents.
252. Deputy John Lahart asked the Minister for Finance if there is a particular reason as to why the child support payment is taxable for those in receipt of invalidity pension but not on other payments such as illness benefit; and if she will make a statement on the matter. [2279/25]
Amharc ar fhreagraIt is a general principle of taxation that, in the absence of a specific exemption, income from all sources is, in general, subject to tax.
Section 126 (3) (a) and (b) TCA 1997, sets out that amounts paid on foot of illness benefit (other than amounts payable in respect of a qualified child within the meaning of section 2(3) of the Social Welfare Consolidation Act 2005) are deemed to be:
• profits arising from an employment and subject to tax under Schedule E, with tax chargeable computed under section 112(1),
• emoluments to which Chapter 4 of Part 42 (Collection and Recovery of Income Tax on certain emoluments (PAYE system)) is applied by section 984.
Section 126 (3) (b) TCA 1997disregards from income tax amounts payable in respect of a qualified child to a number of benefits referred to in subsection (3) among them illness benefit. There is no such exclusion in relation to increases for a qualified child on foot of the invalidity pension.
254. Deputy Barry Heneghan asked the Minister for Finance if he will examine the lack of investing options for parents (details supplied); and if he will make a statement on the matter. [2294/25]
Amharc ar fhreagraOn 22 October 2024, following Government approval. the former Minister published the ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’ - a wide-ranging review of the funds and asset management sector.
The terms of reference included review of the taxation regimes for funds, life assurance policies and other related investment products. As part of this aspect of the review, proposals made in relation to the development of an incentivised retail savings and investment product, like the ISA in the UK, were considered.
The report was very timely given the interest in growing retail savings and investments in both Ireland and in the new mandate of the European Commission.
The report made eight recommendations on the topic of retail investment, including recommendations to better align the tax on investment funds and life assurance products with that of direct equities by removing deemed disposal and aligning the rate of tax to 33%.
The report noted that there may be merit in exploring an incentivised savings and investment account in due course. However, the report concluded that measures proposed for amending the existing taxation of investment funds and life assurance products should be prioritised as these address the most substantive issues raised as part of the review.
The Programme for Government has committed to progress and publish an implementation plan for consideration in Budget 2026 taking into consideration the Funds Review recommendations to unlock retail investment and opportunities to grow this sector in Ireland.
Separately, the Programme for Government committed to explore the establishment of a managed savings account for new-borns with an initial once-off contribution by the State, ensuring lower income families benefit most from its inception.
255. Deputy Michael Cahill asked the Minister for Finance to urgently address the tax-free allowance anomaly of €40,000 that exists for brothers, sisters, nephews and nieces to bring it in line with the €400,000 tax-free allowance that a son or daughter can inherit given this discriminates against single people and couples who either do not have children or cannot have children (details supplied); and if he will make a statement on the matter. [2296/25]
Amharc ar fhreagraCapital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances. 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.
In Budget 2025, the Group A threshold was increased from €335,000 to €400,000, Group B from €32,500 to €40,000 and Group C from €16,250 to €20,000.
There would be a significant cost in making substantial changes to the CAT thresholds such as the one proposed by the Deputy. The options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.
256. Deputy Niall Collins asked the Minister for Finance his plans, if any, to provide affordable house insurance for thatched cottage owners (details supplied); and if he will make a statement on the matter. [2299/25]
Amharc ar fhreagraAs the Deputy is aware, neither I nor the Central Bank of Ireland can interfere with the provision or pricing of insurance products due to the EU Solvency II Directive. However, this Government remains committed to improving insurance costs and availability for householders, individuals and businesses across Ireland and I would draw your attention to the Programme for Government - Securing Ireland's Future which commits to publish a new Action Plan for Insurance Reform with a focus on encouraging further competition in the market across all types of insurance.
Specifically in relation to thatched buildings, it is important to note that thatch insurance is an extremely complex issue, as it is linked with how insurance companies profile and underwrite risk. It is a subject that has been discussed frequently with the major insurance companies and brokers in the State, who have indicated that their major concern regarding thatched properties is the risk of fire.
To address this, during the last Government, the Department of Housing, Local Government and Heritage (D/HLGH) issued fire safety guidelines to thatched property owners and created an inspection scheme to offer further guidance on risk mitigation. Data gathered by that department suggests that these actions are having an effect, with the number of reported fires in thatch properties falling from an average of fourteen fires a year from 2017-2022 to five in the period September 2023 to September 2024, indicating a greater understanding of fire risk and safety in thatched properties on the part of owners and occupiers of thatch properties. Officials from my Department are ensuring that this information is being disseminated to the insurance industry and they, along with Ministers, will seek to press the industry to see what solutions they can offer to this niche aspect of the Irish insurance market.
In conclusion, maintaining a sustainable and competitive insurance market, including for thatched properties, remains a key priority for the Government and I wish to assure the Deputy that I will continue to work with my colleagues to ensure that the new Action Plan for insurance Reform, when developed, will continue to deliver tangible benefits for insurance consumers across the country.
258. Deputy Rory Hearne asked the Minister for Finance if he plans to set a maximum interest rate which credit servicing firms can charge mortgage holders; if such a maximum interest rate would be aligned with the European Central Bank interest rate; and if he will make a statement on the matter. [2477/25]
Amharc ar fhreagraThe Government recognises the difficulties that the increase in interest rates in recent years has caused for some mortgage borrowers.
Now that the ECB is reducing official interest rates, the Government expects all mortgage creditors to keep their lending rates under review. Where mortgage rates had in the past increased in line with ECB increases, they should also appropriately adjust downwards to reflect the new interest rate environment.
In light of the impact of high interest rates on households, Budget 2025 extended the mortgage interest tax relief for a further year. This extension means that the relief will also be made available to assist mortgage holders in respect of the increase in interest paid in 2024 over 2022.
Any person who is experiencing a repayment difficulty on their mortgage should contact their mortgage creditor to discuss the matter or avail of the 'Abhaile' advice and assistance service available through the Money Advice and Budgeting Service.
The ECB is responsible for the formulation and implementation of official interest rates. Changes in official rates feed into the general level of interest rates throughout the economy, and in a market economy the determination of retail and business lending rates are commercial decisions for individual creditors.
From a regulatory perspective the Central Bank has put in place a range of measures in order to protect consumers. This framework seeks to ensure that regulated entities are transparent and fair in all their dealings with borrowers and that borrowers are protected from the beginning to the end of the mortgage life cycle. This consumer protection framework provides the same protections for borrowers regardless of the regulated entity with whom they are dealing, be that a bank, retail credit firm or credit servicing firm.
Specifically in relation to variable rate mortgage holders, the Central Bank's Consumer Protection Code requires all regulated mortgage creditors to explain to borrowers how their non-tracker variable interest rates have been set and to clearly identify the factors which may result in changes to variable interest rates.
The Central Bank has engaged intensively with regulated firms on the operation of specific aspects of the consumer protection framework. Arising from this engagement, the Central Bank has indicated that regulated firms:
• have enhanced the supports available to borrowers in or facing arrears;
• have sufficient operational capacity in place to manage applications by borrowers to switch their mortgage or mortgage provider, and that there is no discrimination against borrowers based on where they currently hold their mortgage; and
• that changes in mortgage interest rates are in line with mortgage terms and conditions, the published variable rate policy statements of the relevant firms and the regulatory framework for which the Central Bank is responsible.
Also, following engagement by Government with the Banking Payments Federation Ireland (BPFI) and the mortgage industry, a number of measures were introduced in 2023 to support borrowers who wish and are in a position to switch their mortgage.
This included the provision of an aligned industry wide set of initial eligibility criteria to facilitate people switching their mortgage from a non-bank to a bank. In order to be eligible to switch under these guidelines, customers need to be making full capital and interest repayments on their mortgage and to meet other eligibility criteria. More recently the BPFI has launched a website, entitled 'it's in your interest', for borrowers to further encourage and assist mortgage switching. The decision on whether or not to provide credit in any particular case, or the amount of credit to provide, remains a commercial matter for an individual lender.
259. Deputy Michael Cahill asked the Minister for Finance to urgently address the current situation whereby apprentices and recently qualified tradespeople are finding it almost impossible to get van insurance (details supplied); and if he will make a statement on the matter. [2484/25]
Amharc ar fhreagraAs the Deputy is aware, neither I nor the Central Bank of Ireland can interfere with the provision or pricing of insurance products due to the EU Solvency II Directive. However, this Government remains committed to improving insurance costs and availability for householders, individuals and businesses across Ireland. I would draw your attention to the Programme for Government-Securing Ireland's Future which commits to publish a new Action Plan for Insurance Reform with a focus on encouraging further competition in the market and working with stakeholders to enhance transparency and affordability across all types of insurance.
In relation to motor insurance, insurance firms use various rating factors when deciding whether to provide coverage and on what terms. These factors can include the driver’s age, driving experience, profession, vehicle age and type, usage, claims history, number of drivers, where the vehicle is kept at night, and the address of the policyholder. Insurers continuously review and analyze relevant data and will assign varying weighting to risk factors, depending on the provider's individual risk appetite. Insurers may also base their prices on their own claims experiences, which means companies can assess these factors differently. Additionally, increasing costs for repairs and labour due to inflation are contributing to premium increases and as a consequence, prices can vary across the market.
Government has implemented a series of reforms of the insurance sector, which have been successful in attracting new entrants to the Irish market. For instance, OUTsurance, a major home and motor insurer, launched last year which is a positive development for consumer choice and competition. Insurance reforms have also promoted greater activity from Managing General Agents, introducing specialised expertise into the market. This, combined with growing competition in the brokerage sector, has improved access to niche insurance products and reduced premiums. International capacity providers have also expressed a more favourable perception of the Irish insurance market.
Maintaining a sustainable and competitive insurance market remains a key priority for the Government and I wish to assure the Deputy that I will continue to work with my colleagues to ensure that the new Action Plan for Insurance Reform, once developed, will continue to deliver tangible benefits for insurance consumers across the country.
260. Deputy Peter 'Chap' Cleere asked the Minister for Finance his plans to increase the current thresholds for inheritance tax; and if he will index link same to keep in line with inflation. [2535/25]
Amharc ar fhreagraCapital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances. 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.
In Budget 2025, the Group A threshold was increased from €335,000 to €400,000, Group B from €32,500 to €40,000 and Group C from €16,250 to €20,000.
You should be aware that there would be a significant cost in making substantial changes to the CAT thresholds. The options available for setting CAT thresholds or introducing an index link must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.
261. Deputy Mairéad Farrell asked the Minister for Finance if he will provide the full list of bilateral double tax treaties that Ireland shares with other jurisdictions, in tabular form; and if he will make a statement on the matter. [2544/25]
Amharc ar fhreagraTax treaties allow for the smooth and regulated taxation of international/trans-national business and investment activities. Ireland’s longstanding tax treaty policy has been to expand, maintain, and enhance Ireland’s tax treaty network to remove barriers and facilitate trade and investment opportunities between Ireland and partner jurisdictions. They provide greater certainty and fairness for taxpayers regarding their tax obligations in foreign jurisdictions and they are key to the prevention of double taxation. Furthermore, they provide for dispute resolution mechanisms and exchange of taxpayer information to enhance tax transparency.
In June 2022, the Department of Finance published Ireland’s tax treaty policy statement. The published policy statement sets out the broad parameters of Ireland’s policy based on two central themes – consideration for Ireland’s economy and trade and recognition that different considerations apply to tax treaties with developing countries. The statement identifies key priority areas for the coming years to ensure the continued expansion and enhancement of our tax treaty network.
Ireland’s treaty base is extensive; Ireland has signed 78 tax treaties, of which 75 are currently in effect. Ireland has tax treaties with all EU Member States and all OECD member countries, bar the two newest members (Colombia and Costa Rica). The table below sets out the full list of treaties as requested.
|
DTAs in effect as of January 2025 (75) |
|
|
|
|
Albania |
Ethiopia |
Luxembourg |
Saudi Arabia |
|
Armenia |
Finland |
Macedonia |
Serbia |
|
Australia |
France |
Malaysia |
Singapore |
|
Austria |
Germany |
Malta |
Slovak Republic |
|
Bahrain |
Georgia |
Mexico |
Slovenia |
|
Belarus |
Greece |
Moldova |
South Africa |
|
Belgium |
Hong Kong |
Montenegro |
Spain |
|
Bosnia Herzegovina |
Hungary |
Morocco |
Sweden |
|
Botswana |
Iceland |
Netherlands |
Switzerland |
|
Bulgaria |
India |
New Zealand |
Thailand |
|
Canada |
Israel |
Norway |
Turkey |
|
Chile |
Italy |
Oman |
United Arab Emirates |
|
China |
Japan |
Pakistan |
Ukraine |
|
Croatia |
Kazakhstan |
Panama |
United Kingdom |
|
Cyprus |
Korea (Republic of) |
Poland |
United States |
|
Czech Republic |
Kosovo |
Portugal |
Uzbekistan |
|
Denmark |
Kuwait |
Qatar |
Vietnam |
|
Egypt |
Latvia |
Romania |
Zambia |
|
Estonia |
Lithuania |
Russia |
|
|
DTAs signed but not yet in effect (3) |
|
|
|
|
Ghana |
Kenya |
Liechtenstein |
|
262. Deputy Michael Cahill asked the Minister for Finance if a new special savings incentive account will be considered to encourage improved savings habits and to help boost the economy during downturns; and if he will make a statement on the matter. [2567/25]
Amharc ar fhreagraOn 22 October 2024, following Government approval, the former Minister published the ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’ - a wide-ranging review of the funds and asset management sector.
The terms of reference included review of the taxation regimes for funds, life assurance policies and other related investment products. As part of this aspect of the review, proposals made in relation to the development of an incentivised retail savings and investment product were considered.
The report was very timely given the interest in growing retail savings and investments in both Ireland and in the new mandate of the European Commission.
The report made eight recommendations on the topic of retail investment, including recommendations to better align the tax on investment funds and life assurance products with that of direct equities by removing deemed disposal and aligning the rate of tax to 33%.
The report noted that there may be merit in exploring an incentivised savings and investment account in due course. However, the report concluded that measures proposed for amending the existing taxation of investment funds and life assurance products should be prioritised as these address the most substantive issues raised as part of the review.
The Programme for Government has committed to progress and publish an implementation plan for consideration in Budget 2026 taking into consideration the Funds Review recommendations to unlock retail investment and opportunities to grow this sector in Ireland.
Separately, the Programme for Government committed to explore the establishment of a managed savings account for new-borns with an initial once-off contribution by the State, ensuring lower income families benefit most from its inception.
263. Deputy Brian Stanley asked the Minister for Finance to consider changing the VAT rate for boarding kennels and catteries as the rate is currently 23%, whereas the rate for groomers and veterinary work is 13.5%; and if he will make a statement on the matter. [2582/25]
Amharc ar fhreagraThe VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law complies. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT.
The provision of boarding kennels and catteries and the services of groomers are not included in Annex III and as such these services are subject to the standard rate of VAT, currently 23%. There is no discretion under the Directive for Ireland to apply a reduced rate of VAT to these services.
However, the Directive allows for a Member State’s historic VAT treatment to be maintained under certain strict conditions. On this basis, Ireland has retained its long-standing application of its reduced rate, currently 13.5%, to the supply of services by a veterinary surgeon in the course of their profession. Where a veterinary surgeon carries out a grooming service as part of a veterinary procedure, such as treating an illness or disease, the grooming is considered part of the veterinary procedure and the entire procedure is liable to VAT at the reduced rate. Where a veterinary surgeon provides a grooming service as a supply that is distinct from a veterinary procedure, the service is liable to VAT at the standard rate of 23%.
265. Deputy Erin McGreehan asked the Minister for Finance the number of categories currently subject to each of the reduced VAT rates of 9% and 13.5%; the number of additional categories which may become subject to either of the reduced VAT rates on foot of proposals in the Programme for Government; and whether there is a limit on the number of categories which may be subject to each, or both, of the two reduced VAT rates. [2718/25]
Amharc ar fhreagraThe VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT. Following revisions in 2022 Annex III has thirty three categories to which a reduced rate may be applied. Member States may apply a reduced rate to a maximum of twenty four of these categories. Ireland currently applies a reduced rate to twenty of these categories. Three of these categories currently have a 9% VAT rate applied.
Ireland maintains two reduced rates, a reduced rate of 13.5% and a second reduced rate of 9%. The Directive allows any of these categories to have any reduced rate applied. A reduction from a 13.5% VAT rate to a 9% VAT rate would not affect the limit of 24 categories to which a reduced VAT rate can apply.
The Directive also allows for a Member State’s historic VAT treatment to be maintained under certain strict conditions outside of Annex III. One of the conditions applied in these cases is that the rate applied under the historic arrangement is ‘parked’, which means that EU law prohibits it being reduced below 12%.
As the Deputy will be aware, in making any decision in relation to VAT rates or other taxation measures, the Government must balance the costs of the measures in question against their impact and the overall budgetary framework. All decisions in relation to changes to VAT rates, including the full scope of any reduction, will therefore be made in line with this framework.
266. Deputy Erin McGreehan asked the Minister for Finance if, as part of the planned review of the cycle-to-work scheme, he will consider extending tax relief to commuters to use urban bike-share schemes for their journeys to work. [2725/25]
Amharc ar fhreagraSection 118(5G) of the Taxes Consolidation Act 1997 provides for the Cycle to Work Scheme. This scheme offers an exemption from benefit-in-kind where an employer purchases a bicycle and/or associated safety equipment for one of their employees (or directors) to use, in whole or in part, to travel to work. Associated safety equipment may include items such as helmets, lights, bells, mirrors and locks.
The Programme for Government 2025, "Securing Ireland's Future", contains a commitment to, within the lifetime of this Government, conduct a review of the Bike to Work scheme to boost take-up among all workers. The Terms of Reference of the review of the scheme will be considered in due course, however it may include examination of possible options to extend or restrict the current scheme or to complement or replace it with a direct expenditure measure.
As the Deputy will appreciate, any proposals for the introduction or amendment of tax reliefs must be assessed in accordance with my Department's Tax Expenditure Guidelines. These make clear the importance that any policy proposal which involves tax expenditures should only occur in limited circumstances. In particular, they provide that a tax-based incentive should only be considered where it would be more efficient than a direct expenditure intervention.
Furthermore, it should be noted that any decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances.
267. Deputy Carol Nolan asked the Minister for Finance the status of the ongoing cooperation between the Revenue Commissioners, An Garda Síochána, the PSNI and HMRC in tackling serious crime, including drug trafficking and the supply of illicit drugs under the cross-Border Joint Agency Task Force; and if he will make a statement on the matter. [2740/25]
Amharc ar fhreagraIn relation to drug trafficking and the supply of illicit drugs, I am advised that Revenue has primary responsibility for the prevention, detection, interception, and seizure of controlled drugs intended to be smuggled or illegally imported into, or exported from, the State. Revenue’s drugs interdiction strategy supports the Government’s strategic approach to the misuse of drugs under the National Drugs Strategy 2017-2025. The Government is acutely aware of the sustained and significant damage that the importation of illicit drugs has on communities right across the country, and every effort is made to combat the importation of illicit drugs.
As part of its risk focused approach to the discharge of its role in relation to illegal drug importations, Revenue monitors and evaluates ports, airports, and other points of entry into the State such as parcel operator premises and mail centres, on an ongoing basis to identify the risk potential for drug smuggling, and in doing so Revenue works, within its remit, in close collaboration with other Irish law enforcement entities and UK partner agencies. The JATF Drugs Crime Priority is led by An Garda Síochána and the PSNI.
Given the global nature of the illicit smuggling trade, international law enforcement cooperation remains a key element in Revenue’s overall response. Revenue has strong and strategic partnerships in place at international level targeting illicit smuggling, including working closely with relevant law enforcement agencies such as Europol and the Maritime Analysis Operations Centre for Narcotics (MAOC-N). Revenue liaison officers are stationed in both Europol and MAOC-N, ensuring Revenue is at the forefront in the area of anti-smuggling enforcement at an international level. These officers work closely with international colleagues in identifying the transnational risks associated with illicit smuggling into the State.
Furthermore, Revenue is an active participant, along with its national and EU partners, in initiatives under the umbrella of the EU Roadmap to Tackle Drugs and Organised Crime. These initiatives, including the European Ports Alliance, provide for EU-wide collaboration and information sharing on best practices to increase security and resilience in tackling the threat posed by drug trafficking, illicit smuggling and organised crime.
At a national level, the Joint Task Force, which is an interagency collaboration consisting of Revenue, the Garda National Drugs and Organised Crime Bureau and the Naval Service, was put in place specifically to target illicit smuggling by sea into Ireland and uses the full capability and resources of each agency as required at an operational level. The Joint Task Force operates successfully under agreed protocols when activated for a specific targeted operation.
In relation to excise fraud, I am advised that Revenue works closely with its counterparts in other jurisdictions including colleagues in Northern Ireland through the Cross Border JATF. The JATF promotes real-time collaboration between Revenue and HM Revenue and Customs, working as appropriate in collaboration with An Garda Síochána and the PSNI, in their efforts to disrupt the activities of organised crime groups involved in serious excise fraud. The JATF is an excellent example of a successful cross border partnership to tackle organised and cross jurisdictional crime on the island of Ireland. Revenue also works closely with other international bodies including OLAF (the EU’s anti-fraud agency), Europol and the World Customs Organisation.
I am assured that combatting excise fraud and the smuggling of controlled drugs into and out of this jurisdiction is, and will continue to be, a priority for Revenue. Ongoing cooperation and collaboration with its national and international law enforcement agencies, including UK counterparts, will continue to play an important role in this regard. I commend Revenue and all the relevant State agencies for their work in this important area.
