Louis O'Hara
Ceist:176. Deputy Louis O'Hara asked the Tánaiste and Minister for Finance to outline the amount of carbon tax collected for the years 2024 and 2025; and if he will make a statement on the matter. [9554/26]
Amharc ar fhreagraTax Yield
Ceisteanna (176)
Freagraí scríofa
I am advised by Revenue that the amount of Carbon Tax collected in 2024 and the provisional amount collected in 2025 are €1,067 million and €1,176 million respectively. The provisional figure for 2025 may be subject to revision.
I am further advised that Carbon Tax receipts for previous years are published on the Revenue website.
As the Deputy will be aware, additional revenue raised by Carbon Tax rate increases is allocated for expenditure on climate action and just transition measures.
Budget 2026 provided for a €1.1 billion allocation toward such measures, an additional €163 million on 2025’s allocation.
As of Budget 2026, the Government has allocated over €4.2 billion in carbon tax revenue for these purposes since 2020. ESRI analysis consistently shows the lower income deciles are better off as a result of the social protection measures funded by the increased carbon tax.
Analysis undertaken using the ESRI tax and benefit model – SWITCH to simulate the impact of the carbon tax increase and the compensatory welfare package estimates that the net impact of the combined measures is progressive. Half of households are better off due to the measures part-funded by additional carbon tax funds, with households in the bottom four income deciles benefitting the most.
This new spending provides grants that help people invest in the energy efficiency of their home. It provides assistance for our farmers to adapt to greener and more sustainable methods. Critically, the spending protects the most vulnerable in society from the impact of the increases in the carbon tax.
Furthermore, to help alleviate energy cost pressures for households, Budget 2026 extended the 9% VAT rate currently applied to gas and electricity until the end of 2030.
The long-term carbon tax trajectory also sends a clear signal to both consumers and production sectors of the Government’s commitment to decarbonisation. This long-term signalling provides certainty on future carbon tax rates and incentivises investment in low carbon technologies.
Film Industry
Ceisteanna (177)
Richard Boyd Barrett
Ceist:177. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance if he is considering including a specific test for quality employment, which is developed in cooperation with workers in the film industry in addition to all other relevant employment legislation, for producer and qualifying companies applying for section 481 film tax credit; and if he will make a statement on the matter. [10091/26]
Amharc ar fhreagraFreagraí scríofa
Section 481 TCA 1997 provides a 32% payable credit for eligible expenditure on film production in Ireland. The scheme is intended to act as a stimulus to indigenous film industry in the State, creating quality employment opportunities and supporting the expression of Irish culture.
The Deputy will be aware that, as part of the application process for the relief, applicant companies are required to sign an undertaking of compliance with all relevant employment legislation. This undertaking commits applicants to compliance with all relevant employment legislation and to having in place written policies and procedures in relation to grievances, discipline and dignity at work (including harassment, bullying and equal opportunity). These conditions shall be met by both the producer company and the qualifying company. If the Minister for Culture, Communications and Sport determines that an applicant company does not adhere to the conditions specified in the undertaking, any credit claimed may be subject to recoupment by Revenue.
It is also worth noting that Ireland was one of the first countries in Europe to link its film tax credit to skills development, with a view to ensuring sustainable growth across the screen industry through upskilling and career development opportunities for Irish crew. In order to ensure adherence with the Industry Development test for the tax credit, all applications must include a Skills Development Plan. For all projects with eligible expenditure in excess of €2 million, a copy of the Skills Development Plan should also be submitted to Screen Ireland for approval. Within 6 months of completion of the project, applicants are required to submit a Quality Assurance Compliance Report including evidence of skills development activity for all skills development participants.
It is very important to recognise that the laws that underpin employment rights apply regardless of whether a company applies for section 481 or not, and they apply equally. The monitoring of compliance with employment rights legislation is primarily a matter for the Department of Enterprise, Tourism and Employment through the Workplace Relations Commission (WRC).
While not having a direct role in respect of employment rights policy, I and my officials will continue to encourage and support quality employment in the audio-visual sector. Significant progress has been made in recent years in advancing the quality of employment in the sector through collective agreements; most notably, the ‘Shooting Crew Agreement’ and the ‘Construction Crew Agreement’ agreed in 2021 and 2022 respectively. The Deputy may also be aware that an independent facilitator was retained by Screen Ireland in 2023 to meet with key stakeholders; wherein copyright concerns were discussed directly with industry. As a result, stakeholders have agreed interim best-practice industry guidelines while pursuing a path towards a collective-bargaining agreement.
We all want everybody's legal rights to be enforced regardless of the tax credit. It is important to recognise that the laws that underpin employment rights apply regardless of whether a company applies for the relief or not.
Interest Rates
Ceisteanna (178)
Thomas Gould
Ceist:178. Deputy Thomas Gould asked the Tánaiste and Minister for Finance whether he plans to reduce interest rates being charged to mortgage holders who mortgages were sold to non-bank lenders after the financial crash. [10023/26]
Amharc ar fhreagraFreagraí scríofa
The Government is aware of the impact that increased mortgage interest rates have had on borrowers over recent years.
However, it is important to note that the determination of retail lending rates is a commercial matter for individual lenders. The Government does not set the mortgage interest rates charged by regulated entities.
Central Bank of Ireland data indicates that mortgage interest rates have declined over the past year.
At the end of September, the weighted average interest rate on all outstanding mortgages held by banks was 3.44%, down from 3.60% a year earlier.
For the non-bank sector, the weighted average interest rate on outstanding mortgages was 3.78%, down from 4.39% a year earlier.
For those entities in the non-bank sector that do not engage in new lending, the average interest rate on outstanding mortgages at the end of September 2025 was 3.91%, down from 5.32% a year earlier.
In relation to new mortgages, the weighted average interest rate on all new mortgage agreements at the end of November was 3.53%, down from 3.97% a year earlier.
These figures put Irish interest rates on new mortgages at their lowest level since February 2023.
The Government, the Central Bank and the industry have taken steps to assist borrowers in response to higher mortgage interest rates.
Budget 2026 maintained the mortgage interest tax credit at the current level for a further year and at a reduced level of relief for the subsequent year.
The Central Bank of Ireland's regulatory framework also offers strong protection for consumers and requires that all regulated entities, including banks, retail credit firms and credit servicing firms, are transparent and fair in all their dealings with borrowers. An enhanced Consumer Protection Code will come into effect next month.
The industry has adopted a consistent set of initial eligibility criteria to facilitate switching mortgages from a non-bank to a bank. It has also introduced a bespoke website, entitled 'It's in Your Interest', to further encourage and assist the mortgage switching process.
Financial Services
Ceisteanna (179)
Aindrias Moynihan
Ceist:179. Deputy Aindrias Moynihan asked the Tánaiste and Minister for Finance the up-to-date position on the establishment of a national Fintech hub, to foster and support Fintech initiatives; and if he will make a statement on the matter. [10062/26]
Amharc ar fhreagraFreagraí scríofa
In line with Programme for Government commitments, my Department is currently developing a successor to the Ireland for Finance Strategy, a strategy for the development of the international financial services sector, to be published in the first half of 2026. Fintech and Digital Finance was one of five key themes in the last strategy.
A public consultation process closed in September. Officials are now reviewing the 58 submissions received and conducting extensive stakeholder engagement.
Supporting Ireland’s entrepreneurs and start-ups is a priority for Government, and the Programme for Government includes a number of commitments which support this objective. This includes a commitment to consider the establishment of a National Fintech Hub. Officials are considering submissions to the Ireland for Finance public consultation focussed on this topic.
Consideration of a National Fintech Hub is being undertaken in parallel with work ongoing in the Department of Enterprise, Tourism and Employment on the Programme for Government commitment to consider the development of a ‘national start-up hub’. Fintech could be a core part of this project. Enterprise Ireland is considering the development a National Start-up Hub as part of Start Up Ireland, and my officials understand that this process is well advanced.
The establishment of Start-up Ireland is a priority under the Action Plan for Competitiveness and Productivity. Delivered by Enterprise Ireland, it aims to support 1,000 new start-ups between 2025 and 2029 by helping founders to start, connect, and scale.
Start-up Ireland will also oversee the rollout of a new National Accelerator Programme, succeeding the NDRC.
Cost of Living Issues
Ceisteanna (180)
Michael Murphy
Ceist:180. Deputy Michael Murphy asked the Tánaiste and Minister for Finance the way in which the move from once-off cost-of-living supports to permanent measures has been assessed in terms of its impact on people with disabilities; and if he will make a statement on the matter. [1615/26]
Amharc ar fhreagraFreagraí scríofa
The Government recognises the significant financial pressures experienced by households with disabilities, particularly amid the heightened cost-of-living conditions of recent years. In response, we have implemented targeted budget measures designed to support those most vulnerable.
As with previous budgets, the Department of Finance conducted a distributional analysis of Budget 2026 to examine the impact of proposed tax and welfare measures on a range of households. This analysis was conducted throughout the decision-making process, and an ex-post distributional analysis of the final budget package was then published in ‘Beyond GDP – Quality of Life Assessment’ on budget day.
When comparing income levels from the new tax and welfare measures in Budget 2026 with those arising from permanent measures in Budget 2025, the analysis finds that households with disabilities see higher disposable income gains (1½ per cent on average) than non-disability households (0.6 per cent on average). Lower income households affected by disability also see a larger increase in their disposable income than high income households.
Furthermore, the targeted measures introduced in Budget 2026 improved conditions for households with disabilities, with departmental analysis showing that they reduced the at-risk-of-poverty rate for these households by 3.8 per cent.
While the temporary cost-of-living measures provided support to many households, it was necessary to replace them with permanent changes to the tax and welfare system. This brings certainty to households and businesses, and sustainability to the public finances.
It is very important to stress that supports for people with disabilities constitute much more than just tax and welfare measures. Budget 2026 significantly strengthened disability services, increasing funding to over €3.8?billion, a 20 per cent rise. This investment will expand a wide range of vital services, including enhanced therapy, strengthened specialist supports for children, and increased residential care.
Budget 2026, provided for a €1.15 billion package of new social protection measures, which included a €10 increase in the weekly social welfare rates of payment, a Christmas bonus double payment to all persons getting a long-term disability payment, paid in December 2025.
It ensures people moving from Disability Allowance or Blind Pension to take up work will be able to retain their Fuel Allowance payment for five years. People getting Disability Allowance or Blind Pension who have children will be eligible for Back to Work Family Dividend when taking up employment and moving off those payments.
A €20 increase in the monthly Domiciliary Care Allowance payment bringing the monthly payment to €380.
Finally, it is important to remember that Budget 2026 is the first of this Government’s budgets - the first in a five-year set of budgets, and not everything can be achieved in the first year. I am confident however that, over the lifetime of this Government, we will continue to drive further improvements in living standards, particularly for people with disabilities.
Housing Schemes
Ceisteanna (181, 422)
John Connolly
Ceist:181. Deputy John Connolly asked the Tánaiste and Minister for Finance the number of people who availed of the help-to-buy scheme in Galway in 2025; if he plans to review the current price thresholds for the scheme; and if he will make a statement on the matter. [9557/26]
Amharc ar fhreagra
William Aird
Ceist:422. Deputy William Aird asked the Tánaiste and Minister for Finance if he will consider increasing the threshold for help-to-buy applicants from €500,000 in Budget 2026 in view of the increase in housing and construction costs; and if he will make a statement on the matter. [10108/26]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 181 and 422 together.
The Help to Buy (HTB) incentive, is a tax-based scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. It also aims to encourage additional supply of new houses by supporting demand.
HTB provides a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.
The level of support available to first time buyers under the HTB scheme, is whichever is the lesser of:
• €30,000; or
• 10 per cent of the purchase price of the new property; or,
• the amount of Income Tax and DIRT paid in the four years before application for the relief.
For a property to qualify for the HTB scheme, it must be new or converted for use as a dwelling, having not previously been used as a dwelling. Additionally, the purchase value/approved valuation of the property must not exceed €500,000.
Based on the latest available data (30 November 2025), the scheme has supported over 61,000 individuals or couples to buy or build their own home. The average property value of approved HTB claims was €360,500.
I am advised by Revenue that in 2025 there were 480 approved HTB claims, covering 874 claimants, in respect of properties located in Co. Galway.
The Programme for Government commits to the retention and revision of the HTB scheme.
In relation to the HTB price ceiling of €500,000, any revisions to the scheme would have to take into account the effective operation of the scheme and the impact any proposed changes would have on the broader housing market, but these matters will be kept under review.
Furthermore, and as the Deputy will also appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, having regard to the sound management of the public finances and the impact any proposed changes would have on the wider housing market.
Tax Data
Ceisteanna (182)
Joe Neville
Ceist:182. Deputy Joe Neville asked the Tánaiste and Minister for Finance the number of earners in Ireland now paying the higher rate of income tax; the way that figure compared with 2020; and if he will make a statement on the matter. [10057/26]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that it is estimated that approximately 30 per cent of taxpayer units, or c. 1.06 million, will be liable to the higher rate of income tax in 2026. This compares to just under 32 per cent, or c. 0.9 million, in 2020. It should be noted that the number of taxpayers paying tax at the higher rate in 2026 is an estimate, based on actual returns for 2023, and adjusting for income and employment trends in the interim. 2023 is the latest year for which complete taxpayer data is available for analysis. The filing deadline for self-assessed income tax returns in relation to 2024 was November 2025, this data is currently being processed and will be available for analysis in early Q3 of 2026.
Over the lifetime of the previous Government the standard rate cut-off point was increased substantially from €35,300 to €44,000 representing an increase of €8,700 or 24.6 per cent. When comparing the 2020 and 2026 figures it should be noted that the income tax base has expanded significantly since 2020. There were approximately 2.86 million taxpayer units in the tax base in 2020, and it is estimated that there will be approximately 3.49 million taxpayer units in the tax base in 2026. This represents a 22 per cent increase or approximately 0.63 million additional taxpayer units.
When examining the change in the number of taxpayers paying the higher rate of income tax in 2020 and 2026 the change as a percentage of the tax base as the metric is a more useful comparison.
More information on the rates of tax paid by taxpayers can be found on the Revenue website at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/personal-taxes/tax-band/index.aspx.
Land Issues
Ceisteanna (183)
Richard Boyd Barrett
Ceist:183. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance if he is satisfied with the effectiveness of current financial disincentives to stop land hoarding and property speculation; if he is planning any other radical measures to end land hoarding and property speculation; and if he will make a statement on the matter. [10092/26]
Amharc ar fhreagraFreagraí scríofa
At the outset, the Deputy should note that there are a number of measures currently in place which disincentivise land hoarding and property speculation.
Residential Zoned Land Tax
The Residential Zoned Land Tax (RZLT) was introduced in Finance Act 2021 and first charged in 2025. It seeks to increase housing supply by encouraging the activation of residential development on lands which are suitably zoned and appropriately serviced.
RZLT legislation allows for a deferral of the tax where the landowner has either commenced residential development or has received planning permission within the past 12 months. Should works on the site permanently cease prior to the expiry of the planning permission period, without the lodgement of certificates of compliance on completion in respect of all of the residential development outlined in the planning permission, the tax deferred up to that point becomes due and payable. The liable person must amend all returns in which the deferral was claimed and pay the RZLT that was deferred and interest accordingly.
The policy objective is to ensure that the land is activated in a timely manner. The most important metric for judging the success of this tax is the number of planning permission applications, and the number of activations of planning permissions. This is reflected in the high percentage of the liability which is deferred as it shows that land which meets the criteria for RZLT, is not being left idle and development is taking place.
Vacant Homes Tax
The Vacant Homes Tax (VHT) was announced in Budget 2023 and legislated for in Finance Act 2022. The main objective of this tax is to increase the supply of homes for rent or purchase by encouraging the owners of vacant, habitable, residential properties to bring those properties back into use. A residential property will be within the scope of the tax if it has been occupied as a dwelling for less than 30 days in a chargeable period.
VHT operates on a self-assessment basis, where the number of properties in scope and the amount of tax payable depends on the self-assessed returns submitted by property owners, the number of properties declared as liable, and the number of property owners entitled to claim available exemptions from the tax.
VHT is charged at a rate of seven times a property’s base local property tax (LPT) charge with effect from 1 November 2024.
Stamp Duty
I would also like to bring to your attention the Stamp Duty rate of 15% which is applied where 10 or more houses (not apartments) are acquired in any 12-month period. This measure is designed to address the issue of property speculation. It is part of a package of measures (the other being planning related) introduced at the time to tackle the bulk acquisition of new houses for the purpose of placing them on the rental market.
First introduced in May 2021, at a rate of 10%, it was increased to 15% in Budget 2025.
The higher Stamp Duty rate on bulk acquisitions is one of several measures introduced in 2021 with the intention of discouraging investment funds (and others) from buying up blocks of new houses, and sometimes whole estates, usually with the intention of placing them on the rental market. Such activity reduces the supply of new houses available to individual private buyers.
Derelict Property Tax
In relation to new measures, the Deputy will be aware that in Budget 2026, Government agreed to the introduction of a new Derelict Property Tax. The aim of this tax is to encourage the activation of derelict properties. It will replace the Derelict Sites Levy and will be collected by the Revenue Commissioners. I intend to legislate for the Derelict Property Tax in 2026.
Local authorities need time and resources to identify properties in their areas so that preliminary registers of dereliction can be published in 2027. The tax will be implemented as soon as possible after these registers are published.
In conclusion, I am satisfied that the existing measures are having a positive impact on the issues of land hoarding and property speculation. I am also confident that the proposed Derelict Property Tax will be helpful in encouraging the activation of derelict properties. All of these measures are kept under review.
Derelict Sites
Ceisteanna (184)
Erin McGreehan
Ceist:184. Deputy Erin McGreehan asked the Tánaiste and Minister for Finance when the Revenue Commissioners will take over collection of the derelict sites levy; and if he will make a statement on the matter. [9740/26]
Amharc ar fhreagraFreagraí scríofa
In Budget 2026, it was announced that a new Derelict Property Tax (DPT) would be introduced. The aim of this tax is to encourage the activation of derelict properties and sites. It will replace the Derelict Sites Levy and will be collected by the Revenue Commissioners.
In order for the new tax to be successful on introduction, care must be taken in its design. A key issue is that the tax must apply in a consistent manner to all residential properties and sites that are derelict. Therefore, a lead-in time will be required for local authorities to identify all the relevant derelict properties in their area for inclusion on a register in a consistent manner.
I intend to legislate for the DPT as part of Finance Bill 2026. This is dependent on engagement from stakeholders and will also be influenced by any advice I receive from the Attorney General. This timeline is necessary to allow local authorities to prepare and publish a preliminary register of derelict properties in 2027, with the tax coming into effect as quickly as possible thereafter.
Once the Derelict Property Tax is operational, I am confident this will incentivise owners of derelict properties to take action to bring these homes back into use and ultimately contribute to our housing stock.
Childcare Services
Ceisteanna (185)
Emer Currie
Ceist:185. Deputy Emer Currie asked the Tánaiste and Minister for Finance if his Department has engaged with the Department of Children, Disability and Equality to develop mechanisms through the tax system to help lower the cost of childcare for families with childminders working in the family home; and if he will make a statement on the matter. [10072/26]
Amharc ar fhreagraFreagraí scríofa
The Government acknowledges the cost pressures on parents with young children. In recognition of these pressures, several support measures are already in place to ease the burden on working parents. These include various tax-exempted financial supports provided by the Minister for Children, Disability and Equality to assist parents to offset the costs of early learning and childcare. These include:
• Income received by childminders who provide child-minding services in their own home may claim Childcare Services Relief which provides an exemption from income tax on that child-minding income, provided that they do not receive more than €15,000 income per annum from child-minding.
• A Single Person Child Carer tax credit of €1,900 is available as well as an additional standard rate band of €4,000. Subject to meeting the relevant conditions, this credit and increased rate band is payable to a single person with a child under 18 years of age or if over 18 years of age in full time education or permanently incapacitated. The primary claimant may relinquish this credit and increase in the rate band to a secondary claimant with whom the child resides for not less than 100 days in the year.
• The Accelerated Capital Allowances scheme for Childcare Services which was introduced to encourage employers to develop childcare facilities onsite for their employees.
In relation to the introduction of a further tax relief for parents with childminders working in the family home, such proposals for tax expenditure measures must be assessed in accordance with my Department's Tax Expenditure Guidelines. These make clear that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures and where a tax-based incentive is more efficient than a direct expenditure intervention.
Insurance Coverage
Ceisteanna (186)
Noel McCarthy
Ceist:186. Deputy Noel McCarthy asked the Tánaiste and Minister for Finance the measures being considered by his Department to ensure that flood insurance cover is made more accessible to households at risk of flooding or those that have previously been flooded; the further engagement his Department has had with insurance providers in this regard; and if he will make a statement on the matter. [10077/26]
Amharc ar fhreagraFreagraí scríofa
As Tánaiste and Minister for Finance, I acknowledge the serious damage caused by recent flooding events, and the impact they have had on families, communities, and businesses across Ireland.
The Government remains committed to protecting Ireland’s present and future generations by investing in climate adaptation measures to manage the impacts of extreme weather. 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.
In terms of flood insurance, the Central Bank of Ireland has undertaken extensive research into the nature and scale of the Flood Protection Gap in Ireland. They found that 1 in 20 buildings (approximately 5%) have limited access to flood insurance; and that 54% of this gap is concentrated in Dublin, Cork, Louth, Clare, and Kildare. However, our recent experiences demonstrate that the impacts of flooding are not solely limited to those counties. The Central Bank Report also notes that no single solution exists to address the flood protection gap.
Building on the work carried out by the Central Bank, the Action Plan for Insurance Reform 2025-2029 includes 4 specific actions on flood and climate protection. With respect to Action 17 of the Action Plan, the Department of Finance is currently engaging with multiple stakeholders on the development of a long-term strategic approach to the provision of flood insurance, to consider potential solutions, specific to Ireland, to increase the availability and affordability of flood insurance. An update will be provided to the next Cabinet Sub-Group on Insurance Reform.
My officials will also continue to monitor developments at EU and international level and assess flood insurance matters, including through participation in the OPW and Insurance Ireland Working Group. These matters remain a priority for this Government and efforts continue to be made to encourage a responsive approach from the insurance industry.
Banking Sector
Ceisteanna (187)
Mairéad Farrell
Ceist:187. Deputy Mairéad Farrell asked the Tánaiste and Minister for Finance the reason former Minister for Finance ignored pre-Budget 2026 advice from officials within the Department of Finance, to introduce profitability bands to the bank levy, that would result in a greater amount of money paid by AIB and Bank of Ireland; and if he will make a statement on the matter. [10052/26]
Amharc ar fhreagraFreagraí scríofa
Section 126AB of the Stamp Duties Consolidation Act 1999 provides for a Stamp Duty, known as the “bank levy”, to be levied on certain financial institutions. The bank levy in its current form was introduced by Finance (No. 2) Act 2023, to apply for the year 2024, and extended in Finance Act 2024 to apply for 2025. It is payable by the banks that received financial support from the State during the Global Financial Crisis. The banks concerned are AIB, Bank of Ireland, EBS and Permanent TSB.
As part of Budget 2026, and as was subsequently provided for in Finance Act 2025, my predecessor as Minister for Finance, Paschal Donohoe, decided to extend the levy for another year. As with the levy for the previous two years, the target yield for 2026 is €200 million. To achieve this target, the levy will be charged at the rate of 0.1025 per cent of the total amount of deposits held by each bank on 31 December 2024, to the extent that those deposits were “eligible deposits” within the meaning of the European Union (Deposit Guarantee Schemes) Regulations 2015.
During his pre-Budget consideration of the extension of the Bank Levy, Minister Donohoe considered a number of options related to the levy, including the potential introduction of profitability bands. This would have had the effect of reducing the burden imposed on smaller institutions, with an element of the overall €200 million revenue target being redistributed to the larger institutions.
This matter was raised with the former Minister in a submission to him from officials, and while he initially indicated that it should be advanced, he subsequently determined that it should not be proceeded with.
As I have already stated, the decision subsequently taken by my predecessor Paschal Donohoe, was to extend the levy for another year.
Derelict Sites
Ceisteanna (188)
Barry Heneghan
Ceist:188. Deputy Barry Heneghan asked the Tánaiste and Minister for Finance the current position regarding the introduction and application of taxation measures relating to vacant and derelict properties; whether indicative timelines have been set for their commencement and operation; whether his Department is examining options to advance their implementation in the context of housing supply objectives; and if he will make a statement on the matter. [10087/26]
Amharc ar fhreagraFreagraí scríofa
Vacant homes are currently taxed through the Vacant Homes Tax (VHT), which was announced in Budget 2023 and legislated for in Finance Act 2022. A residential property is within the scope of the tax if it has been occupied as a dwelling for less than 30 days in a chargeable period. The tax operates on a self-assessment basis, where the number of properties in scope and the amount of tax payable depends on the self-assessed returns submitted by property owners, the number of properties declared as liable, and the number of property owners entitled to claim available exemptions from the tax. Each chargeable period commences on 1 November and ends on 31 October of the following year.
VHT was charged at three times a property’s base local property tax (LPT) charge in respect of the first chargeable period (1 November 2022 – 31 October 2023), and at five times a property’s base LPT charge in respect of the second chargeable period (1 November 2023 – 31 October 2024). VHT currently applies at a rate of seven times a property’s base LPT charge with effect from 1 November 2024.
Regarding derelict properties, in Budget 2026, it was announced that a new Derelict Property Tax (DPT) would be introduced. The aim of this tax is to encourage the activation of derelict properties and sites. It will replace the Derelict Sites Levy and will be collected by the Revenue Commissioners.
In order for the new tax to be successful on introduction, care must be taken in its design. A key issue is that the tax must apply in a consistent manner to all residential properties and sites that are derelict. Therefore, a lead-in time will be required for local authorities to identify all the relevant derelict properties in their area for inclusion on a register in a consistent manner.
Officials in my Department are engaging on an ongoing basis with Revenue on the design of this new tax in recognition of its potential impact on housing supply objectives. My officials are also engaging with the Department of Housing, Local Government and Heritage in relation to the existing levy and the key role of local authorities, which will be crucial to the effective implementation of the new tax.
I intend to legislate for the DPT as part of Finance Bill 2026. This is dependent on engagement from stakeholders and will also be influenced by any advice I receive from the Attorney General. This timeline is necessary to allow local authorities to prepare and publish a preliminary register of derelict properties in 2027, with the tax coming into effect as quickly as possible thereafter.
Once the Derelict Property Tax is operational, I am confident this will incentivise owners of derelict properties to take action to bring these homes back into use and ultimately contribute to our housing stock and housing supply targets.
Legislative Measures
Ceisteanna (189)
Catherine Ardagh
Ceist:189. Deputy Catherine Ardagh asked the Tánaiste and Minister for Finance for an update on the Central Bank (Amendment) Bill 2025; when he expects it to be passed into law; and if he will make a statement on the matter. [9537/26]
Amharc ar fhreagraFreagraí scríofa
I am firmly committed to advancing this important piece of legislation which is a key commitment in the Programme for Government, and an important measure to ensure fair access to mortgage protection insurance for survivors of cancer. The decision by Government to legislate follows engagement with key stakeholders and reflects the Government’s determination to put these protections on a statutory footing and to provide legal certainty and ensure uniformity across all market participants.
The Bill builds on the Voluntary Code of Practice, introduced by Insurance Ireland in December 2023, which disregards a cancer diagnosis for the purpose of mortgage protection insurance applications once treatment ended for specific times.
My officials are currently working with the Office of the Parliamentary Council on the draft amendments and are giving careful consideration to the implications for prudential regulation, the classification of insurance risks, establishing a process that is legally functional, and the proper interaction with other financial legislation. This will ensure that the objectives of the Bill are achieved without any unintended impacts, and that the ability to obtain mortgage protection insurance moves smoothly from a voluntary code to a legislative framework.
Pending the finalisation of the draft amendments and their subsequent approval by Government, it is my expectation that the Bill will be ready to move to Committee Stage within a number of weeks, where the revised and finalised text may be considered and debated in full. Advancing this Bill represents an important step in ensuring fairer and more compassionate access to financial services for cancer survivors.
Tax Exemptions
Ceisteanna (190)
Paul Murphy
Ceist:190. Deputy Paul Murphy asked the Tánaiste and Minister for Finance if he will end the inequity in access to the bike-to-work and taxsaver public transport schemes whereby workers on the standard rate of tax receive lower benefits than higher paid workers; and if he will make a statement on the matter. [9559/26]
Amharc ar fhreagraFreagraí scríofa
I thank the Deputy for his question on the bike-to-work and the TaxSaver scheme.
Section 118(5A) of the Taxes Consolidation Act 1997 (TCA) provides an exemption from benefit-in-kind (BIK) where an employer purchases a travel pass for an employee. This is commonly known as the TaxSaver scheme.
Similarly, section 118(5G) of the TCA provides for the Cycle to Work Scheme. This scheme offers an exemption from BIK 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.
Under section 118B TCA, an employer and employee may enter into a Revenue-approved salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary, in exchange for a benefit such as those provided under the aforementioned schemes.
These schemes were implemented as tax-exempt benefit-in-kinds in order to keep the implementation as simple as possible and reduce administrative burden on the part of employers. Consequently, under these schemes, the qualifying benefit is exempt from income tax, PRSI and USC at whichever rate the taxpayer would otherwise be liable to pay.
Ireland’s income tax system generally ensures that the burden of taxation falls most heavily on those with a higher ability to pay. This means that those on lower incomes pay less income tax as a share of their income than those on higher incomes. Those individuals liable to tax at the higher rate will, as a result, get greater tax relief as this is at their marginal rate. Due to the progressive nature of our income tax system, higher-rate taxpayers over the course of the tax year pay a significantly greater amount of income tax than taxpayers at the standard rate of tax.
Progressive income tax systems contribute to the redistribution of income and to the reduction of income inequality. With regard to the vertical equity principle of taxation, I would note that Ireland has among the most progressive systems of taxes and social transfers of any EU or OECD country.
It is my view that a broad-based, progressive income tax system, where the majority of income earners make some contribution but according to their means, is the fairest and most sustainable income tax system in the long term.
As with all tax expenditures, both the TaxSaver and Cycle to Work schemes are kept under review by officials.
The Deputy should note, however, that the Programme for Government 2025, "Securing Ireland's Future", contains a commitment to, within the lifetime of this Government, conduct a review of the Cycle to Work scheme with the aim of boosting take-up among all workers. I remain committed to this.
Insurance Industry
Ceisteanna (191)
Ruairí Ó Murchú
Ceist:191. Deputy Ruairí Ó Murchú asked the Tánaiste and Minister for Finance the plans his Department has in 2026 to help reduce the cost of insurance premiums; and if he will make a statement on the matter. [9941/26]
Amharc ar fhreagraFreagraí scríofa
The Government is firmly committed to addressing the cost of insurance through implementing the reforms set out in the Programme for Government to ensure a fairer, more sustainable and competitive insurance market which delivers tangible improvements in cost, choice, and access for all consumers.
An element is the Office for the Promotion of Competition in the Insurance Market (OPCIM), whose remit is being broadened in line with the Programme for Government, Securing Ireland’s Future. The OPCIM is working closely with IDA Ireland to attract new international insurers to the Irish market. This work helps to broaden the supply base, diversify risk appetite and encourage more competitive pricing. The Office continues to support the dialogue between insurers, brokers, and representative bodies and has played a significant role in restoring insurance options for sectors that previously faced significant challenges, including equestrian activities, adventure tourism, childcare, inflatable hire, and high-footfall hospitality businesses.
Reforms delivered through the 2020 Action Plan, such as changes to the Duty of Care, enhancements to the Injuries Resolution Board, and the introduction of the Personal Injuries Guidelines, have helped to create more stable and competitive insurance market. These measures have also helped attract new market entrants, including OUTsurance, Revolut, and Managing General Agents, increasing capacity and consumer choice.
The Action Plan for Insurance Reform 2025-2029 sets out further targeted measures to improve affordability, availability, and transparency across the sector. Work is underway to accelerate faster data releases from the National Claims Information Database (NCID), strengthening accountability and supporting fairer pricing. In addition, the development of a Transparency Code for the insurance industry is a priority action with the primary objective of improving fairness, clarity, and accountability across the motor insurance market. When implemented, it will establish clear standards for how insurers and intermediaries present information to customers, ensuring the use of plain English, standardised definitions, and accessible explanations of how premiums are calculated. It will also ensure that consumers can directly receive additional information, upon request, to better understand their own premium.
As the Deputy will be aware, neither I as Tánaiste and Minister for Finance, nor the Central Bank can intervene directly in the pricing or provision of insurance products under the Solvency II EU Directive. Minister of State Troy and officials from my Department engage regularly with the insurance industry to emphasise the Government’s firm expectation that savings arising from the reform agenda are to be passed on to consumers through lower premiums and broader coverage availability.
Exchequer Savings
Ceisteanna (192, 201)
John Paul O'Shea
Ceist:192. Deputy John Paul O'Shea asked the Tánaiste and Minister for Finance for an update on the establishment of the Future Ireland Fund; the intentions of the fund; and if he will make a statement on the matter. [9951/26]
Amharc ar fhreagraJohn Paul O'Shea
Ceist:201. Deputy John Paul O'Shea asked the Tánaiste and Minister for Finance for an update on the establishment of the Infrastructure, Climate and Nature Fund; the intentions of the fund; and if he will make a statement on the matter. [9952/26]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 192 and 201 together.
The Future Ireland Fund (FIF) and Infrastructure, Climate and Nature Fund (ICNF) were established in July 2024 following the commencement of the Future Ireland Fund and Infrastructure, Climate and Nature Fund Act 2024.
Each of the funds received their first tranches of funding in September 2024, with further transfers having occurred in 2024 and 2025. The FIF and ICNF had received combined transfers of approximately €16.5 billion by year-end 2025, with this rising to approximately €23 billion by year-end 2026.
Each of the funds is currently being invested by the National Treasury Management Agency (NTMA) in their role as controller and manager of the funds. The long-term investment strategies for each fund were published in January 2026.
The Future Ireland Fund will be maintained over the longer term with the return on the Fund used to support government expenditure for future generations. This will help to deal with future recognised expenditure pressures including ageing, climate, digitalisation and other fiscal and economic challenges. It will support in a consistent and sustainable manner, State expenditure from 2041 onwards.
The Infrastructure, Climate and Nature Fund will help to ensure that the State has resources available in a future downturn to support capital expenditure through the business cycle.
€3.15bn of the ICNF is being provided to help achieve carbon reductions and particular environmental and nature objectives as set out in the legislation. An indicative allocation of this funding to departments was provided in the review of the National Development Plan (NDP):
• €2 billion to the Department of Transport (to support low-carbon transportation),
• €650 million to the Department of Housing (to support improvements in water quality), and
• €500 million to the Department of the Climate, Energy and the Environment (to support climate mitigation and renewable energy development).
The Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation has primary responsibility for the designation of such projects under the ICNF. €134 million will be drawn down in 2026, with details as to the projects in receipt of funds provided in the Revised Estimates Volume 2026.
Tax Code
Ceisteanna (193, 212, 226)
Edward Timmins
Ceist:193. Deputy Edward Timmins asked the Tánaiste and Minister for Finance to consider increasing the thresholds on capital acquisitions tax; and if he will make a statement on the matter. [9950/26]
Amharc ar fhreagra
Michael Cahill
Ceist:212. Deputy Michael Cahill asked the Tánaiste and Minister for Finance if he will review the group B and group C thresholds under capital acquisitions tax; and if he will make a statement on the matter. [10068/26]
Amharc ar fhreagra
Colm Burke
Ceist:226. Deputy Colm Burke asked the Tánaiste and Minister for Finance if he will consider amending the capital acquisition tax rules in order that those who are childless can leave a greater amount to loved ones in their will without a large tax bill being incurred; and if he will make a statement on the matter. [9958/26]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 193, 212 and 226 together.
Capital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances and is charged at a rate of 33%. For CAT purposes, the relationship between the person giving a gift or inheritance and the person who receives it determines the maximum amount, known as the “Group threshold”, below which CAT does not arise. The group thresholds were most recently increased in Budget 2025 as follows:
The Group A threshold increased to €400,000 from €335,000. This threshold applies where the beneficiary is a child of the disponer. This includes adopted children, stepchildren and some foster children. Parents may also fall within this threshold where they take an inheritance from a child.
The Group B threshold increased to €40,000 from €32,500. This threshold applies where the beneficiary is a brother, sister, niece, nephew, or lineal ancestor or lineal descendant of the disponer. Following recent changes made to Capital Acquisitions Tax legislation, the Group B threshold also applies to persons who receive gifts and inheritances from the wider family of their foster parents, for example, from their foster siblings, uncles, aunts and grandparents.
The Group C threshold increased to €20,000 from €16,250, with this threshold applying in all other cases.
Along with tax free group thresholds, various reliefs and exemptions are available in relation to CAT, including agricultural and business relief. There is also the small gift exemption, favourite niece or nephew relief, and the dwelling house exemption.
In general, the availability of specific reliefs in respect of a particular tax head often means that the tax must be calibrated correctly in order to generate an appropriate yield. It is important from a tax policy perspective to maintain stability and certainty, and to ensure that the CAT thresholds are appropriately set in the context of the range of reliefs available.
There is a significant associated cost with further changes to the group thresholds, whether it involves increasing these thresholds or whether it involves bringing those who are childless within the scope of the Group A threshold. However, that said I recognise the burden of capital taxation.
Therefore, any further changes to the CAT rate and thresholds and who falls within these thresholds must be considered among various other demands within the overall Budget package, as they have been in the past. In that regard, you should note that the CAT group thresholds are kept under review annually by my officials throughout the Finance Bill cycle. Further details of the costs of changes are available on the Ready Reckoner which was updated and published by Revenue after Budget 2026.
Fiscal Policy
Ceisteanna (194)
Albert Dolan
Ceist:194. Deputy Albert Dolan asked the Tánaiste and Minister for Finance the contingency plans he has in place in the event of a downturn in tax revenues; and if he will make a statement on the matter. [9538/26]
Amharc ar fhreagraFreagraí scríofa
Significant progress has been made over the last number of years in building a stable and sustainable tax base. This reflects the lessons learned in the aftermath of the global financial crisis, when the public finances had become overly reliant on volatile and unreliable sources of tax revenue.
The stand-out feature of Ireland’s fiscal performance in recent years has been the surge in corporation tax receipts. I have made clear that windfall tax receipts are not a suitable basis on which to build permanent expenditure commitments. Government is acting to mitigate the risks around this revenue stream: last month we made the first set of transfers this year into the Future Ireland Fund and Infrastructure, Climate and Nature Fund: by the end of this year, around €23 billion will have been transferred into the funds. This means we are setting aside a portion of these revenues to prepare for future challenges and enhance our economic resilience, instead of relying on them to fund day-to-day spending.
More broadly, the best way to guard against a decline in tax revenues is to continue to pursue a balanced and sensible approach to overall budgetary policy. Last year, Government published Ireland’s Medium Term Fiscal & Structural Plan, which targets continued budgetary surpluses and keeps public spending at sustainable levels while also allowing for continued investment in our economy and public services.