Written Answers Nos. 195-214
195. Deputy Pa Daly asked the Tánaiste and Minister for Finance if he has engaged at an EU level to discuss allowing member states to set the VAT on electricity at 0% under the EU VAT Directives as a means to assist with the transition to net zero; and if he will make a statement on the matter. [10032/26]
Amharc ar fhreagraAs the Deputy will be aware the EU VAT Directive which Irish VAT law must comply generally holds that outside of certain historical derogations all goods and services are liable for VAT at the standard rate unless they are included in a schedule under Annex III of the Directive. For those goods and services within Annex III a specified number may have a zero rate of VAT applied to them.
After changes to the Directive in 2022, it became possible to apply a reduced or second reduced rate of VAT to electricity, with the temporary 9% VAT rate on electricity and gas being extended until end 2030 in Budget 2026. It is not possible to apply a zero rate of VAT to electricity.
As the Deputy will be aware any changes in relation to the VAT Directive require unanimity. The last revision to Annex III of the VAT Directive was agreed to in April 2022 after a four-year negotiation process. No further change to Annex III is expected at this time.
196. Deputy Edward Timmins asked the Tánaiste and Minister for Finance to consider reintroducing indexation for capital gains tax; and if he will make a statement on the matter. [9949/26]
Amharc ar fhreagraThe Deputy will be aware that Ireland's Capital Gains Tax (CGT) rate is 33%. It is paid on the chargeable capital gain made when a person disposes of an asset. The chargeable gain is usually the difference between the price paid for the asset and the price it is disposed of. CGT is payable by the person making the disposal.
Section 556 of the Taxes Consolidation Act 1997 (‘TCA 1997’) provides a measure of relief for capital gains which are attributable purely to inflation, commonly known as ‘indexation relief’. The section provides that, in computing the chargeable gain on the disposal of an asset, the cost of acquisition of the asset (and any other expenditure allowable in computing the gain) are to be indexed, that is, they are to be adjusted by applying to it a multiplier based on the All Items Consumer Price Index as compiled by the Central Statistics Office. Finance Act 2003 amended section 556 TCA 1997 such that indexation relief does not apply from the 2003 tax year onwards. Indexation relief however, continues to be available in computing a chargeable gain arising on the disposal of an asset where the deductible expenditure on that asset was incurred prior to the tax year 2003, with the relevant indexation multiplier being determined by reference to the year in which the expenditure was incurred.
Where an asset was held on 6 April 1974, the market value of the asset as at that date is deemed to be the cost of acquisition and indexation is applied to this base “cost”. Indexation relief cannot operate to create an artificial loss or to augment an actual monetary loss. There is also a restriction on the amount of indexation available on the disposal of development land – section 651 TCA 1997 restricts indexation relief to the current use value of the land at the date of acquisition, together with such proportion of the incidental costs of acquisition as is referable to that current use value.
Indexation relief was ended as a means of gradually broadening the tax base, and it has proved effective in that regard.
The Programme for Government, Securing Ireland's Future, commits to maintaining a broad tax base to guard against the need for counter-cyclical fiscal policy in the event of a downturn and to prepare for future budgetary challenges relating to population aging. CGT is part of a system to ensure taxation is not focused solely on income tax and that those who benefit from gains in the value of their assets are included within the tax net on an equitable basis.
As with all taxes, CGT is subject to ongoing review, which involves the consideration and assessment of the rate of CGT and the relevant reliefs and exemptions from CGT. CGT policy and legislation is reviewed as part of the annual Budget and Finance Bill process and as part of wider tax policy considerations.
197. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance the action he is taking on foot of his Department’s advice to introduce new regulations that would ensure social media companies vet who can post adverts promoting financial investment schemes on their platforms; and if he will make a statement on the matter. [10054/26]
Amharc ar fhreagraMy officials have been undertaking a number of actions aimed at reducing the incidence rate of payment fraud, this includes actions aimed towards preventing the use of social media platforms for the advertisement of illegal and fake financial services.
The Payment Services Regulation has recently reached political agreement in the EU; this agreement includes a requirement for search engines and social media platforms to verify that persons advertising financial services on their platforms have the necessary regulatory authorisation to provide those financial services. This measure is based on a proposal brought forward by Ireland during legislative negotiations.
In addition to financial services advertiser vetting, the Payment Services Regulation includes several other fraud prevention measures such as spending limits, expanded transaction monitoring, fraud information sharing arrangements, anti-fraud education and awareness initiatives, and cross-sector cooperation and data sharing between PSPs, communication service providers, and hosting services for the purpose of detecting and preventing fraud.
Furthermore, the Payment Services Regulation will expand Bank liability from only cases of unauthorised payment fraud, to also include cases of impersonation fraud where the victim is manipulated into authenticating a payment by a person impersonating their Bank.
The Central Bank of Ireland has informed me that they are already engaging on a bilateral basis with certain technology companies, looking for them to introduce financial services advertisements verification on a voluntary basis, in this jurisdiction.
Google introduced advertisement verification in November 2024 which has provided some positive results in relation to the reduction in the volume of fraudulent advertisements on Google platforms.
This mechanism, if operating effectively, should protect consumers from the harm posed by scam advertisements as it prevents consumers being exposed to those advertisements in the first place.
The Central Bank also seeks to disrupt frauds and scams by reporting suspect content to internet service providers, including under the Trusted Flagger regime provided for in the Digital Services Act.
198. Deputy Naoise Ó Cearúil asked the Tánaiste and Minister for Finance his views on Ireland’s ability to maintain the downward trajectory of the debt-to-GNI* ratio, as required in the Medium-Term Fiscal and Structural Plan, in light of projected increases in capital spending; and if he will make a statement on the matter. [9954/26]
Amharc ar fhreagra225. Deputy Naoise Ó Cearúil asked the Tánaiste and Minister for Finance the way in which the Government intends to remain within the net expenditure growth ceiling set out in Ireland’s Medium-Term Fiscal and Structural Plan, given the projected upward pressure from age-related spending over the 2025–2029 adjustment period; and if he will make a statement on the matter. [9953/26]
Amharc ar fhreagraI propose to take Questions Nos. 198 and 225 together.
The Government published its Medium-Term Fiscal and Structural Plan (MTP) in December. The publication of the Plan represents a fundamental shift in the way budgetary policy is formulated in Ireland, pivoting towards medium-term budgeting.
The Plan is based on three core pillars: sustainability, resilience and readiness. Firstly, the Government will continue to increase expenditure in public services in a sustainable way. Secondly, we are committing to large-scale infrastructure investment to boost the resilience of our economy. Thirdly, we will keep saving for the future by running budgetary surpluses and setting money aside in the Future Ireland Fund (FIF) and Infrastructure and Infrastructure, Climate and Nature Fund (ICNF).
This strategy shows that the Government is intent on using the resources of the State to improve people’s lives, but in a sustainable way by taking into account future structural challenges such as population ageing.
To operationalise this, the Government has committed to fixed voted exchequer spending ceilings for the rest of the decade. These ceilings are then, in turn, reflected in the Net Expenditure growth path set out in the document. Ireland — like all member States — is required to set out expenditure in this way. Importantly, the ceilings set out in the MTP take account of cost drivers and incorporate policy decisions across a range of sectors, including the anticipated increase in age-or demographic- related costs.
On the basis of this strategy, the debt-to-income ratio is projected to fall by approximately 4 percentage points of GDP between 2025 and 2030. When scaled by GNI* — a better indicator of the size of the Irish economy — the debt-to-income ratio is also anticipated to continue to fall over the same horizon.
In addition to projected debt developments, the further accumulation of assets in the ICNF will, if needed, help smooth the economic cycle. Moreover, the FIF will provide some of the resources needed to meet structural challenges such as population ageing beyond the lifetime of this Plan.
199. Deputy Peter 'Chap' Cleere asked the Tánaiste and Minister for Finance if the process for the delivery of a strategy for the credit union sector has commenced; and if he will make a statement on the matter. [9529/26]
Amharc ar fhreagra203. Deputy Shay Brennan asked the Tánaiste and Minister for Finance for an update on the new strategy for the credit union sector; if it will support a centralised treasury function for the sector; and if he will make a statement on the matter. [9728/26]
Amharc ar fhreagraI propose to take Questions Nos. 199 and 203 together.
The Programme for Government includes a commitment to draft a five-year strategy for the credit union sector. Both Minister of State Troy and I intend to co-sponsor a project plan with the credit union sector to determine the sector's long-term strategy.
In conjunction with the Minister for State, my officials are developing a governance framework and a member focused project plan to deliver on this commitment, ensuring the approach is inclusive and owned by the sector. Work on both is nearing completion, and I expect that shortly, both the Minister for State and I will be in a position to make a formal announcement on the governance framework and project plan. This will be a significant project that has required detailed project design and planning before commencement and delivery within a 12-month timeframe.
This will be a strategy developed and implemented by credit unions, as credit unions are best placed to understand and respond to their members' needs. I expect that this strategy will be owned by the credit union sector, be member and non-member focused, and will build on the many fundamental strengths of the sector.
The credit union sector is diverse, and each credit union is independently governed. I expect that there will be many different viewpoints that need to be listened to and considered. Substantial effort will be made by Government to engage with all stakeholders.
This will be challenging, but the achievement of an agreed sector-wide strategy for credit unions will be significant, and in the long term will provide better services to all credit union members and non-members.
In relation to the centralised treasury function, provisions of the Credit Union (Amendment) Act 2023 that provide for the establishment of a corporate credit union have yet to be enacted. I understand that there are a number of corporate credit union initiatives being developed by the sector, some of which include the development of a centralised treasury function. In order to assist with those conversations, I have asked the Credit Union Advisory Committee (CUAC) to consider the various structures and uses for the corporate credit union, including but not limited to a centralised treasury function. I expect to publish this completed CUAC paper shortly.
A corporate credit union could be a transformative tool for the sector that will support agreed strategic initiatives, but it will require significant collaboration within the sector. In addition to this, the Central Bank will need to develop a comprehensive set of regulations on the operation of such an entity. I would encourage the sector to consider in detail the CUAC paper and to work together to deliver a corporate credit union that supports the needs and ambitions of the sector.
200. Deputy Sean Fleming asked the Tánaiste and Minister for Finance the plans in place to activate the estimated €170 billion in Irish deposit accounts, to advance the objectives of the Savings and Investments Union; and if he will make a statement on the matter. [9535/26]
Amharc ar fhreagraThe EU Savings and Investments Union aims to create better financial opportunities across the EU, providing people with more opportunities to invest and provide for their current and future prosperity. The project also aims to deepen the pools of capital available for investment in businesses across Europe, grow the European economy and benefit our strategic objectives. In March last year, the European Commission launched the SIU Strategy, which included a number of measures to advance the Capital Markets Union project. In September 2025, the European Commission adopted a Recommendation on increasing the availability of Savings and Investment Accounts in Member States and this included an outline of their key characteristics.
Ireland is committed to support initiatives that enhance retail investor participation in capital markets. As such, I strongly welcome the publication of this Recommendation. While Ireland does not have a specific investment account for retail investors at present, the tax treatment of retail investments was considered as part of a broader review into the funds and asset management sector in Ireland, which culminated in the ‘Funds Sector 2030’ report that was published in October 2024.
In recognition of the importance of encouraging retail investment, Finance Bill 2025 provided for a reduction in the rate of taxation on returns from Irish and equivalent investment funds and Irish and certain foreign life assurance policies from 41% to 38%.
As part of Budget 2026, the government announced its intention to publish a roadmap in 2026, setting out the intended approach to simplify and adapt the tax framework to encourage retail investment in future Finance Bills. The roadmap will take into consideration developments at EU level in respect of the Savings and Investments Union, including the Recommendation on the availability of Saving and Investment Accounts and draw upon best practice in other countries who operate successful savings accounts.
202. Deputy Tony McCormack asked the Tánaiste and Minister for Finance for an update on the Ireland for Finance strategy; when the next version of the strategy will be launched; and if he will make a statement on the matter. [9547/26]
Amharc ar fhreagraThe Ireland for Finance strategy is a whole-of-Government strategy for the development of the international financial services sector in Ireland. The strategy was originally published in 2019, with the Update to Ireland for Finance being published in October 2022.
In 2025, the Ireland for Finance Progress Report for 2024 was published. This outlined the progress of the 13 actions set out in the Ireland for Finance Action Plan 2024. The report showed that out of the 13 actions, 11 actions were complete while one action remained ongoing, and one action delayed. Key measures delivered within this included the Central Bank of Ireland's first Innovation Sandbox Programme opening for applications, establishment of the International Financial Skills Implementation Group, and significant promotion and support for the international financial services sector from Ireland's enterprise agencies.
Additionally, last year, the Ireland for Finance Action Plan for 2025 was published. The action plan outlined 15 action measures under the 5 five themes, with progress delivered across all actions over the course of the year. A formal progress report on this activity will be produced in 2026.
In line with Programme for Government commitments, the Department of Finance is actively working on the new Ireland for Finance Strategy. I anticipate that this Strategy, following Government approval, will be published in H1 2026. Significant engagement and consultation has and will continue to take place to inform this work, including a public consultation concluded in September 2025, which received 57 written submissions, input from the standing quarterly Ireland for Finance Joint Committee forum, and a wide range of bilateral, national and international stakeholder engagements.
204. Deputy Ryan O'Meara asked the Tánaiste and Minister for Finance if the removal of the deemed disposal rule for certain classes of investments will be considered for Budget 2027; and if he will make a statement on the matter. [9553/26]
Amharc ar fhreagraDeemed disposal is an anti-avoidance measure that applies to investments in Irish domiciled investment funds and life assurance products, as well as equivalent offshore funds and certain foreign life assurance products. Under deemed disposal, tax is levied eight years after an investment is made, and every subsequent eight years, regardless of whether or not a disposal has in fact occurred. The tax is levied on any gain in the value of the investment from the date of acquisition to the date of the deemed disposal. On the ultimate disposal of the investment, any tax paid is allowed as a credit against the final tax liability. The purpose of deemed disposal is to prevent the indefinite roll-up of income and gains and the associated loss of tax to the Exchequer.
I am committed to taking the necessary action to support retail investment in Ireland. The reduction from 41% to 38% in the taxation rate that applies to Irish and equivalent offshore funds and Irish and certain foreign life assurance products, that was announced in Budget 2026, is an important first step in this regard. This change will apply to investments in Exchange-Traded Funds (ETFs) that are taxed under these regimes.
I am aware of the concerns regarding the taxation of investment and the operation of deemed disposal in particular. It is important to ensure that any changes in this area achieve an appropriate balance between supporting retail investment and maintaining appropriate anti-avoidance protections. Work is continuing on the development of the roadmap for the taxation of retail investment, as announced in Budget 2026. The roadmap will be published in the coming months and will set out an approach to simplify and adapt the tax framework to further support retail investment while retaining necessary and important anti-avoidance protections in a proportionate manner. This roadmap will facilitate due consideration of the Funds Sector 2030 Report and take into account the European Commission’s recommendation on Savings and Investment Accounts. I hope further progress can be made to address some of the existing obstacles to greater retail investment.
205. Deputy Séamus McGrath asked the Tánaiste and Minister for Finance if he will increase the house price ceiling to qualify for the help-to-buy-scheme. [10093/26]
Amharc ar fhreagraThe 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.
The Programme for Government commits to the retention and revision of the HTB scheme.
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. 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.
206. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if he has approved, or intends to approve, in principle, any policy direction arising from the Revenue Commissioners' consultation on the modernisation of withholding taxes, including professional services withholding tax and relevant contracts tax, that would involve increased reporting frequency or real-time or near-real-time integration between businesses' accounting or financial systems and the Revenue Commissioners; if he is satisfied that such an approach would be proportionate for small and medium-sized enterprises, particularly those operated by non-professional bookkeepers; if a cost-benefit or behavioural impact assessment has been carried out at policy level within his Department; and if he will make a statement on the matter. [8195/26]
Amharc ar fhreagraI thank the Deputy for his question.
A joint Department of Finance and Revenue public consultation on the matter of the proposed modernisation, reform and expansion of withholding taxes was recently run. This was announced by the previous Minister for Finance, in his Budget speech, on 7 October 2025. This consultation was launched on 5 December 2025 and closed on 30 January 2026. It sought input from businesses, taxpayers, software providers, business associations, representative bodies and other stakeholders.
As part of the consultation, my Department and Revenue specifically sought external input to the proposed modernisation of Professional Services Withholding Tax (PSWT) and Relevant Contracts Tax (RCT). The consultation also sought views on the proposed expansion of withholding tax to those providing services through platform operators.
This public consultation has stimulated discussion and the views from all stakeholders about the benefits, challenges and opportunities presented by the proposals are very important.
The designated hub for the consultation remains available on the Revenue website - https://www.revenue.ie/en/corporate/consultations-and-submissions/ewht/index.aspx
I would like to confirm that, at this time, no decisions have been taken in relation to these proposals. Analysis and evaluation of the feedback received needs to be undertaken before my officials are able to bring recommendations to me for consideration. I expect that, if recommendations are progressed, they will be considered as part of the Budget and Finance Bill process. As the Deputy will be aware, there is a longstanding practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
207. Deputy Noel McCarthy asked the Tánaiste and Minister for Finance the further measures being considered by his Department to combat the illicit tobacco trade, considering the year-on-year decrease in the volume and value of illicit tobacco products seized in 2025, as per the Revenue Commissioners headline results for 2025; and if he will make a statement on the matter. [10060/26]
Amharc ar fhreagraI am assured by Revenue of its commitment to targeting the illicit tobacco trade. Revenue implements a range of measures to identify and target illicit manufacturing facilities, and 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 involves developing and sharing intelligence on a national, EU and international level, the use of analytics and detection technologies and ensuring the optimum deployment of resources.
The smuggling of tobacco products has a transnational and cross border dimension and in addition to Revenue’s ongoing cooperation with An Garda Síochána in this area, Revenue also works closely with its counterparts in other jurisdictions including colleagues in Northern Ireland through the Cross Border Joint Agency Task Force (JATF), to address cross-border smuggling and dismantle organised crime networks involved in the illegal tobacco market.
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 and in Co. Louth in March 2025.
Moreover, new regulations were introduced last year to improve controls over tobacco products. These regulations strengthen rules relating to the amount of duty-paid on tobacco products that an individual can bring into Ireland from another European Union Member State, without being subject to extra duty or taxes.
These new rules, which come into effect on 9 December 2025, will help to ensure that Excise Duty reliefs for personal use are not abused. The signing of the Control of Excisable Products (Amendment) Regulations 2025 is one necessary step in Revenue’s ongoing strategy to further enhance controls over tobacco products being brought into the State.
I am satisfied that Revenue is very conscious of the threat that tobacco smuggling, and the sale of illicit tobacco products poses to health, to legitimate business interests and to the Exchequer. I commend Revenue and all the relevant State agencies for their work in this important area and am satisfied that Revenue is focused on tackling this form of criminality.
208. Deputy Barry Heneghan asked the Tánaiste and Minister for Finance the rationale for the current geographic scope of the Living City Initiative and other tax reliefs relating to the refurbishment and conversion of above the shop and derelict residential units; whether his Department has examined the potential extension of such reliefs beyond their existing designated areas in order to support the reactivation of vacant and derelict properties for residential use on a wider basis; and if he will make a statement on the matter. [10086/26]
Amharc ar fhreagraThe Living City Initiative is a targeted measure which is aimed at specific areas in need of regeneration. It offers income or corporation tax relief for qualifying expenditure incurred in the refurbishment and conversion of qualifying residential and commercial buildings located within Special Regeneration Areas (SRAs) of Cork, Dublin, Galway, Kilkenny, Limerick and Waterford.
Budget 2026 announced a number of enhancements to the Living City Initiative to strengthen the scheme, with the changes provided for in Finance Act 2025. It was also announced that the scheme would be extended to the five regional centres as set out in the National Planning Framework, namely, Athlone, Drogheda, Dundalk, Letterkenny and Sligo. The process to extend the scheme to these towns is currently underway.
The reason for the extension of the scheme to the towns identified in the Budget Statement is that they are the five regional centres set out in the National Planning Framework. In particular, National Policy Objective 15 of the Framework provides for the application of:
"...a tailored approach to urban development...strengthening Ireland’s overall urban structure, particularly in the Northern and Western and Midland Regions, to include the regional centres of Sligo and Letterkenny in the North-West, Athlone in the Midlands and cross-border networks focused on the Letterkenny-Derry North-West City Region and Drogheda-Dundalk-Newry on the Dublin-Belfast corridor....".
There are a range of non-tax supports to encourage the objectives in the Deputy's question, without the geographic restrictions which apply in the case of the Living City Initiative.
In particular, the Vacant Property Refurbishment Grant which is currently available to individuals to bring into use vacant and derelict properties. Furthermore, recent changes have been agreed to the existing grant scheme announced by the Minister for Housing, Local Government and Heritage, including the introduction of a Vacant Above the Shop Grant, with stepped funding of up to €140,000 to support bringing ‘above the shop’ vacant space into residential use.
Other direct expenditure supports include the Repair and Leasing Scheme and SEAI grants which also assist in bringing into residential use vacant above the shop space.
209. Deputy John Lahart asked the Tánaiste and Minister for Finance if he will consider the introduction of tax relief similar to that on dialysis machines, for oxygen machines for the treatment of lung fibrosis; and if he will make a statement on the matter. [9543/26]
Amharc ar fhreagraAs I have recently advised the Deputy in my reply to Parliamentary Question 384 on 27 January 2026, section 469 of the Taxes Consolidation Act (“TCA”) 1997 provides for tax relief where an individual proves that he or she has incurred costs in respect of qualifying health expenses. Only “health expenses” incurred in the provision of “health care”, which has been carried out or advised by (in certain circumstances) a “practitioner”, will qualify for tax relief.
Health care is defined as the “prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability”.
Health expenses are defined as "expenses in respect of the provision of health care" and include "expenses representing the cost of maintenance or treatment necessarily incurred in connection with the services of a practitioner". The definition of practitioner includes a number of medical professionals, including a person registered in the register established under section 43 of the Medical Practitioners Act 2007.
Maintenance or treatment costs that are incurred either in hospitals or elsewhere (for example in clinics or treatment rooms) will qualify for relief where they are necessarily incurred in association with the services of a practitioner.
In relation to surgical, dental or nursing appliances, Revenue guidance sets out that relief is allowed on the costs incurred on the:
• supply;
• maintenance; or
• repair of any medical, surgical, dental or nursing appliance used on the advice of a practitioner.
In respect of oxygen, in order to qualify for relief under section 469 TCA 1997:
• appliances used to deliver oxygen must be a medical, surgical, dental or nursing appliance used on the advice of a practitioner,
• oxygen purchased must be a drug or medicine supplied on the prescription of a medical practitioner.
Regarding electricity costs, if an individual is required to use electricity to operate medical devices necessary in the provision of healthcare and this is advised by a practitioner, tax relief may be available under section 469 TCA 1997. In this scenario, an individual may be eligible to claim tax relief on the electricity expenditure referrable to such usage. This treatment applies in all cases where the relevant conditions are met.
Further guidance on tax relief for qualifying health expenses can be found in Revenue’s Tax and Duty Manual Part 15-01-12, which can be accessed at the following link: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-12.pdf
210. Deputy Matt Carthy asked the Tánaiste and Minister for Finance the total amount by which he proposes to raise the price of petrol, diesel and home heating oil through increases to the carbon tax, in each year until 2030. [10074/26]
Amharc ar fhreagraLiquid fuels used for motor or heating purposes are subject to excise duty in the form of Mineral Oil Tax (MOT). MOT comprises a carbon and a non-carbon component with the carbon component also being referred to as carbon tax. The application of carbon tax to petrol and auto-diesel was introduced in December 2009, followed by the extension of carbon taxation to other liquid fuels, including home heating oil, on 1 May 2010.
Ireland’s carbon tax regime is a carbon pricing mechanism which directly links the taxation of fossil fuels to carbon dioxide emissions: a single price is set for a tonne of carbon dioxide, and this price is then applied to each fuel type according to the level of carbon dioxide emitted by that fuel when it is combusted. In this way, the carbon tax applying to each fuel type reflects the level of carbon dioxide emissions that it releases.
Legislation was introduced in Finance Act 2020 to provide for annual increases in carbon tax rates up to May 2030, at which point all carbon tax rates will be based on charging €100 per tonne of carbon dioxide emissions. Carbon tax rates on petrol and auto-diesel are legislated to increase at Budget time each October up to and including 2029, with rates on other liable fuels such as heating kerosene and marked gas oil legislated to increase each May (i.e. after the winter heating season) up to and including 2030. This means that rates for the carbon component of MOT are set to increase a further four times for petrol and auto-diesel, and five times for heating fuels, over the remainder of the trajectory provided for in legislation.
For petrol, the MOT rate increases, inclusive of VAT, will total to 8.1 cents per litre over the remainder of the carbon tax trajectory. The annual increases will be 2.1 cents per litre for each of the next three years, and 1.8 cents per litre in 2029.
Inclusive of VAT the remaining four increases to the MOT rate on auto-diesel will total to 9.6 cents per litre. The annual increases will be 2.5 cents per litre for each of the next three years and 2.1 cents per litre in 2029.
Kerosene is the most commonly used oil for home heating. Inclusive of VAT the MOT rate increases on heating kerosene will total to 10.7 cents per litre over the remainder of the carbon tax trajectory. The annual amounts will be 2.2 cents per litre for each of the next four years and 1.9 cents per litre in 2030.
Marked gas oil is also used for heating. Inclusive of VAT the remaining five increases to MOT on marked gas oil will total to 11.2 cents per litre. The annual increases will be 2.3 cents per litre for each of the next four years and 2 cents per litre in 2030.
211. Deputy Máire Devine asked the Tánaiste and Minister for Finance if he will make the carer's allowance and carer's benefit tax exempt and non-means-tested, the same as other social welfare supports including disability allowance, jobseeker's allowance, domiciliary care allowance and child benefit, in recognition of carers saving the State over €20 billion each year through their unpaid care; and if he will make a statement on the matter. [9945/26]
Amharc ar fhreagraI understand that, subsequent to putting down this question, the Deputy clarified that the question relates to making carer’s benefit tax exempt, and making carer's allowance tax exempt and non-means-tested.
Carers play a fundamental supporting role in society, and the Government are committed to supporting individuals and families with caring responsibilities. This is acknowledged by the broad range of commitments in the Programme for Government to improving supports for carers.
Carer's Allowance and Carer's Benefit are subject to Income Tax but are exempt from USC and Pay Related Social Insurance. There is no change in this status.
It should be noted that not all carers who are in receipt of Carer’s income will have a tax liability, particularly if their income level is below the taxation threshold, or they have sufficient tax credits to reduce their liability to nil. A person’s tax liability will depend on their individual personal circumstances, income levels and personal credits available to them and their family.
As 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 available resources and the sound management of the public finances.
In relation to the Deputy's question regarding means-testing for Carer’s Allowance, I would note that this is beyond my direct remit as Minister for Finance as it is a matter for the Minister for Social Protection in the first instance.
I am advised by the Department of Social Protection that the Carer’s Allowance is the main scheme by which the Department of Social Protection provides income support to carers. Expenditure on Carer’s Allowance in 2026 is estimated to exceed €1.4 billion.
The Programme for Government has set out a timeline which commits to significantly increasing the income disregards for Carer’s Allowance in each Budget, with a view to phasing out the means test during the lifetime of this Government.
This process is underway. Last July the amount of weekly earnings disregarded was increased to €625 for a single person and €1,250 for a couple.
As part of Budget 2026, further changes to the means test were announced that will be introduced this July. The weekly income disregard will increase by 60% from €625 to €1,000 for a single person, and from €1,250 to €2,000 for carers who are part of couple.
Since June 2022, there have been cumulative increases to the disregards of over 200%.
The latest changes to the means test announced in Budget 2026 are the largest ever increases in the Carer’s Allowance income disregard and will result in more carers qualifying for Carer’s Allowance, even those in households that are regarded as having relatively high incomes.
For example, a carer in a two-adult household with an income of approximately €110,000 will retain their full Carer’s Allowance payment and even with an income of €138,000 will retain a partial payment.
The recent improvements outlined are evidence of the Government’s determination to deliver on its commitment to phase out the Carer's Allowance means test over the course of this Dáil term. We will continue to progress this commitment in light of prevailing budgetary conditions.
213. Deputy Matt Carthy asked the Tánaiste and Minister for Finance the amount raised through the carbon tax in the years 2019 to 2024; and the amount projected to be raised in the years 2025 to 2030, by year. [10073/26]
Amharc ar fhreagraI am advised by Revenue that the amounts raised through the Carbon Tax in each of the years 2019 to 2024 are shown in the following table. The provisional amount of Carbon Tax collected in 2025 is €1,176m. This figure may be subject to revision.
|
|
|
|
Year |
Receipts €m |
|
2024 |
1,067 |
|
2023 |
935 |
|
2022 |
791 |
|
2021 |
652 |
|
2020 |
494 |
|
2019 |
430 |
I am further advised by Revenue that a breakdown of carbon tax receipts, across all fuel and energy types, for the years 2019 to 2024 and previous years is published on the Revenue website at: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/receipts-volume-and-price/excise-receipts-commodity.aspx.
The Deputy has requested the amount projected to be raised through the carbon tax in each of the years up until 2030. In July 2025, my Department published updated Carbon Tax Projected Exchequer Revenue Estimates (2013-2030) as part of the Tax Strategy Group paper on Energy, Environmental and Vehicle Tax. The updated carbon tax projected revenue estimates section of the 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 most recent climate action plan measures. This scenario analyses 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 the Climate Action Plan actions between 2025 and 2030 based on the SEAI and the Environmental Protection Agency (EPA) ‘With Additional Measure’ (WAM) scenario and ‘With Existing Measure’ (WEM) scenario analysis. This paper is available on my Department's website: https://assets.gov.ie/static/documents/TSG_25-10_Energy_Environmental_and_Vehicle_Tax_UPD.pdf
214. Deputy Catherine Callaghan asked the Tánaiste and Minister for Finance if he plans to review DIRT; and if he will make a statement on the matter. [9955/26]
Amharc ar fhreagraThe Deputy will be aware that Deposit Interest Retention Tax (DIRT) is a withholding tax that is deducted by Irish financial institutions on deposit interest paid or credited on the deposits of Irish residents.
Since 1 January 2020, the DIRT rate is 33%. DIRT is a final liability tax. This means that an individual has no further tax liability in respect of the deposit interest earned. The Deputy should note that the rate of DIRT and its structures was most recently examined as part of the Tax Strategy Group exercise in 2024. This paper is available on my Department’s website.
Deposit interest is specifically excluded from the Universal Social Charge. Individuals may however have a liability to Pay Related Social Insurance (PRSI) in certain circumstances.
There are various exemptions from the obligation to deduct DIRT on deposit interest paid or credited by financial institutions. For instance, interest is exempted from DIRT where an account is held by an individual, or their spouse or civil partner, aged 65 years or older, and their total income in a year (including interest earned) is below the relevant income tax annual age exemption limit.
The annual age exemption limits are €18,000 in the case of a single person and €36,000 in the case of a married couple or civil partnership. The relevant income thresholds may be increased further if the individual has a qualifying child. These exemption limits were considered as part of the Review of the Personal Tax System carried out by my Department in 2023. The review is available on my Department’s website. Further information on the DIRT exemption, including how to claim it, is available on the Revenue website.
As with all taxes, DIRT is subject to ongoing review. This involves the consideration and assessment of the rate of DIRT and the relevant exemptions from DIRT as part of the annual Budget and Finance Bill process, as well as the wider tax policy context.
