Written Answers Nos. 450-469
452. Deputy Barry Ward asked the Tánaiste and Minister for Finance the position regarding any research carried out into the cost of eliminating the universal social charge; and if he will make a statement on the matter. [11678/26]
Amharc ar fhreagraAs the Deputy will be aware, the Universal Social Charge (USC) was designed and incorporated into the Irish taxation system in 2011 to replace the Health and Income Levies. Its primary purpose was to widen the tax base and to provide a steady income to the Exchequer to provide funding for public services.
The USC is an individualised tax, meaning that a person’s liability to the tax is determined on the basis of a person’s own individual income and personal circumstances. It is a more sustainable charge than those it replaced and is applied at a low rate on a wide base, which ensures that it is a stable and sustainable source of revenue for the State.
In 2016, joint Department of Finance/Economic and Social Research Institute (ESRI) research found that USC represented a more stable form of revenue than income tax. The findings highlighted that USC revenues would fluctuate by less than income tax revenues whenever income is volatile, for example where the economy moves from a boom into a bust. Given the openness of the Irish economy and consequent susceptibility to economic shocks, the contribution that the USC makes to the stability of the State’s revenue sources is considerable.
The Department of Finance also carried out a review of the personal tax system in 2023. This review included analysis of the USC and was published as part of Budget 2024 documentation.
The USC yield for 2025 amounted to €5.6 billion, and for 2026, it is projected to total approximately €5.8 billion. Given its significant yield the USC has played a vital role in meeting the many expenditure demands placed on the Exchequer in recent times. Therefore, if the USC were to be abolished it would be necessary to generate this yield from alternative sources.
453. Deputy Barry Ward asked the Tánaiste and Minister for Finance the position regarding any research carried out into the cost to the Exchequer of reducing the higher rate of income tax; and if he will make a statement on the matter. [11679/26]
Amharc ar fhreagra454. Deputy Barry Ward asked the Tánaiste and Minister for Finance the position regarding any research carried out into the cost to the Exchequer of amending the income tax brackets that would increase the income threshold before hitting the higher income tax rate; and if he will make a statement on the matter. [11680/26]
Amharc ar fhreagraI propose to take Questions Nos. 453 and 454 together.
The Deputy may wish to note that Revenue produces, on a bi-annual basis, a Pre- and Post-Budget Ready Reckoner. The latest Post-Budget 2026 Ready Reckoner is available on the Revenue Statistics webpage at:
www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.
The Ready Reckoner shows a wide range of detailed information, including the estimated cost to the Exchequer of widening the income tax standard rate bands and reducing the higher rate of income tax. For convenience the table below sets out the first year and full year cost for a sample of proposals referred to by the Deputy.
|
Measure |
First Year (€m) |
Full Year (€m) |
|
1% point decrease in the higher rate of income tax |
€482 |
€567 |
|
€1,000 increase in the income tax standard rate bands |
€232 |
€265 |
It should be noted that these figures are based on 2026 estimates from the Revenue tax forecasting model using latest actual data for the year 2023, adjusted as necessary for income, self-employment, and employment trends in the interim.
My Department publishes regular updates in relation to indexation of the income tax system. In recent years, information on the indexation of tax credits and standard rate bands has been included in the annual Income Tax – Tax Strategy Group paper. Most recently the Budget 2026 Income Tax – Tax Strategy Group paper sets out information relating to indexing the income tax system, including the estimated cost to the Exchequer. In addition, costs are also provided in relation to the adjustment of income tax rates and USC rates and thresholds. The costs used in these publications are based on Revenue Ready Reckoner publications. The Budget 2026 Income Tax - Tax Strategy Group paper is available at https://assets.gov.ie/static/documents/TSG_25-01_Income_Tax.pdf.
455. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance the amount of Irish Government debt held by credit unions at end September 2023; at end September 2024; at end September 2025; and if he will make a statement on the matter. [11724/26]
Amharc ar fhreagraData provided by the Central Bank, based on extracts from unaudited information reported by credit unions, outlines the following positions as at 30 September 2023, 30 September 2024 and 30 September 2025 respectively:
2023 - The overall amount invested in Irish Government Bonds by credit unions was €153.81 million
2024 - The overall amount invested in Irish Government Bonds by credit unions was €123.95 million
2025 - The overall amount invested in Irish Government Bonds by credit unions was €225.18 million
456. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance the average credit union personal loan issued to end December 2024 and to end December 2025; the total amount of outstanding personal loans issued by credit unions to end December 2024 and to end December 2025; and if he will make a statement on the matter. [11725/26]
Amharc ar fhreagraData provided by the Central Bank, based on extracts from unaudited information reported by credit unions, outlines the following positions at the end of December 2024, and December 2025 respectively:
2024 – the average personal loan size was €9,491, and the total amount of personal loans outstanding was c€6.15bn.
2025 - the average personal loan size was €9,962, and the total amount of personal loans outstanding was c€6.56bn.
457. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance the total amount of surpluses generated by credit unions to end September 2023; end September 2024 and end September 2025; and if he will make a statement on the matter. [11726/26]
Amharc ar fhreagraData provided by the Central Bank, based on extracts from unaudited information reported by credit unions, outlines the following positions as at end September 2023, end September 2024 and end September 2025 respectively:
|
End September |
Total amount of surpluses generated by credit unions |
|
2023 |
c.€151.39 million |
|
2024 |
c.€223.05 million |
|
2025 |
c.€225.18 million |
458. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance if he intends to amend Section 107 of the Credit Union Act 1997 as amended to change the financial year from 30 September; and if he will make a statement on the matter. [11727/26]
Amharc ar fhreagraSection 107(1) of the Credit Union Act, 1997 provides the financial year as “the financial year of a credit union shall be the period of 12 months ending on the 30th day of September or such other date as the Bank may determine.”
My officials, together with credit union stakeholders worked collaboratively to deliver the Credit Union (Amendment) Act 2023 (the 2023 Act). In addition to the many enabling provisions of the 2023 Act, there were a number of changes to improve the administrative efficiency of credit unions.
In the review of the policy framework for credit unions, completed as part of the 2023 Act, stakeholders did not raise the financial year end as a matter that needed to be amended. Furthermore, Minister of State Troy has visited many credit unions and met a large number of credit union representatives, none of whom have raised the financial year end date as a point of concern.
Consequently, there are currently no plans to amend legislation to change the credit union financial year from 30 September.
459. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance the total value of the Irish deposit guarantee scheme fund, broken down by different sectors; and if he will make a statement on the matter. [11728/26]
Amharc ar fhreagraThe Central Bank of Ireland (CBI) has confirmed that the total value of the Deposit Guarantee Scheme (DGS) Contributory Fund as at the 31 December 2025 was €1.248 Billion. This figure is expected to be published on the European Banking Authority’s (EBA) website in April 2026; the figure for all prior years is available on the EBA website. All Credit Institutions (Banks and Credit Unions) authorised by the CBI are required to contribute to the DGS Contributory Fund.
The current DGS Contributory Funds are attributed to contributions received from Credit Institutions for the period 2016 to 2023, which is the period during which the DGS Contributory Fund was built up in order to reach a target level of 0.8% of covered deposits. This target level was met in July 2024 and as such the CBI sought no contributions from Credit Institutions in the 2024 or 2025 contribution cycles, the CBI have advised that this remains under review.
I am further advised by the CBI that Information is not provided on the amounts contributed by individual sectors, with reporting at all times completed on a combined basis for all contributing Credit Institutions.
460. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance in light of the current geopolitical situation and moves at European level for simplification and strengthening the single market, would he support credit unions being allowed access the European Central Bank overnight facility to park excess liquidity or the establishment of a similar domestic equivalent; and if he will make a statement on the matter. [11729/26]
Amharc ar fhreagraBoth I and the Minister of State with responsibility for credit unions, where necessary and appropriate continue to support the credit union sector to grow and provider services to its members.
Access to the European Central Bank overnight facility is derived from the Governing Council of the ECB - Guideline ECB/2014/60, as amended. In order to be an eligible counterparty for Eurosystem monetary policy operations (including access to the Eurosystem’s deposit facility), an institution must meet the eligibility criteria in the relevant legal act adopted by this Guideline.
The relevant provisions have been implemented in Ireland by the Central Bank's Documentation on Monetary Policy Instruments and Procedures (the 'MPIPs'). An applying institution must therefore satisfy all the eligibility criteria set out in Articles 55 and 55a of the MPIPs. The process of becoming a monetary policy counterparty involves an assessment by the Central Bank as to whether an applicant institution meets these criteria. Any such assessment will be conducted in line with harmonised Eurosystem procedures.
In a previous application by a credit union, The Central Bank determined that the regulatory and supervisory framework for credit unions in Ireland was not comparable to the standards required of the Capital Requirements Regulation/ Capital Requirements Directive ("CRD4"). This distinction has been by design, with credit unions in Ireland benefiting from a bespoke, tailored and proportionate supervisory regime. Accordingly, the Central Bank has determined that the supervisory regime for Irish credit unions does not satisfy the eligibility criterion in Article 55(b)(iii) of the MPIPs, as they do not consider that the Basel III standards have been implemented into the supervisory regime of credit unions in Ireland in a manner that satisfies this criterion.
It is important to note that the Central Bank does not have discretion in respect of the application of the Eurosystem’s monetary policy eligible counterparties framework (which is applied in a uniform manner by the Eurosystem), nor to grant access to Eurosystem monetary policy operations, including access to the Eurosystem’s deposit facility, outside of this framework.
Under the previous Government, the Credit Union Amendment Act (2023) was enacted. The Amendment Act includes provisions permitting the establishment of a Corporate Credit Union. These provisions require development of significant Central Bank regulations.
One potential use of this Corporate Credit Union that is being considered by the sector is a centralised liquidity management entity. I intend to publish a paper, prepared by the Credit Union Advisory Committee (CUAC) which provides useful information on the potential uses and regulatory requirements of a Corporate Credit Union.
461. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance the current situation and sanction if a central union infringes another credit unions common bond as defined under the Credit Union Act 1997 as amended; and if he will make a statement on the matter. [11730/26]
Amharc ar fhreagraCredit unions in Ireland are regulated and supervised under the Credit Union Act, 1997 (the 1997 Act) and regulations issued by the Central Bank of Ireland (Central Bank), which set out the framework for the registration, regulation and operation of credit unions.
Each credit union has a common bond that establishes the basis for membership (e.g. members within a community or a workplace). Credit unions can offer services to members that exist within their common bond or to the members of another credit union where the member is referred by that other credit union in accordance with section 51A of the 1997 Act.
An individual credit union may seek to change its common bond subject to the legislative requirements set out in the 1997 Act. Section 14 of the 1997 Act outlines the steps which a credit union must follow to amend its registered rules which includes passing a resolution. Provided the common bond of a credit union meets the requirements of the 1997 Act, it may overlap with another credit union's common bond.
The Central Bank has a range of enforcement tools available to facilitate timely corrective action when it appears that a credit union is not complying with laws, regulations or required actions, and that enforcement action is justified. The Central Bank may take a number of actions including requiring more frequent reporting, issuing Risk Mitigation Programmes (RMPs), giving regulatory directions, using sectoral specific supervisory powers or the imposition of administrative sanctions.
462. Deputy Cathal Crowe asked the Tánaiste and Minister for Finance his plans to revise and increase the help-to-buy limit of €500,000; and if he will make a statement on the matter. [11763/26]
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, to date.
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.
463. Deputy Cathal Crowe asked the Tánaiste and Minister for Finance his plans to revise the residential zoned land tax; and if he will make a statement on the matter. [11764/26]
Amharc ar fhreagraResidential Zoned Land Tax (RZLT) is a self-assessed annual tax which is calculated at 3% of the market value of land within its scope. It is charged on the 1 February each year beginning in 2025 and applies to land which is zoned for residential use and is serviced and identified on maps published by Local Authorities, but which is not a residential property. RZLT aims to prompt residential development by incentivising landowners to activate existing planning permissions, or to engage with planning authorities to seek planning permission in respect of relevant land.
The legislation underpinning RZLT requires local authorities to consider whether land satisfies the relevant criteria for the tax, being that the land in question is zoned for residential use, serviced and not otherwise excluded from the relevant criteria, and to prepare and publish maps identifying land within the scope of the tax. These maps are updated annually for any changes in the zoning and servicing status of the land which has already been included on such maps, to reflect any additional land which falls within the scope of the tax and to exclude any land that has fallen outside the scope of the tax.
Draft revised maps are published by local authorities by 1 February each year and owners of land appearing on draft revised maps are provided with an opportunity to make submissions regarding whether their land satisfies the relevant criteria and the date from which it satisfied the criteria. If a local authority determines that land subject to such a submission does satisfy the relevant criteria for inclusion on the draft revised map, the legislation affords the landowner an opportunity to appeal the local authority determination to An Coimisiún Pleanála.
The tax is charged in respect of land included on revised maps published by local authorities by 31 January in the year after the publication of the draft revised maps, which reflect the outcome of the submissions and appeals processes.
Information in respect of the amount of RZLT declared, the number of exemptions claimed, and the total hectares returned, including and excluding exempt land, is published within the October 2025 property taxes report available on the Revenue website. [https://www.revenue.ie/en/corporate/information-about-revenue/statistics/property-taxes/yearly-stats/2025/index.aspx]
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.
I am satisfied that RZLT is achieving its objective of activating land for residential development purposes. However, as with all taxes, it is kept under regular review by officials in my Department and if I believe any further changes are necessary, I will consider them as part of the annual finance bill cycle.
464. Deputy Barry Heneghan asked the Tánaiste and Minister for Finance whether his Department has examined the introduction of a capped, tax advantaged long term savings or investment account, similar in structure to the Individual Savings Account used in the United Kingdom, as a practical way to help young people build up savings for housing deposits over time; and if he will make a statement on the matter. [11775/26]
Amharc ar fhreagra466. Deputy Barry Heneghan asked the Tánaiste and Minister for Finance whether any analysis has been carried out on how capped, tax advantaged long-term savings vehicles could support first-time buyers, particularly younger households, to accumulate housing deposits in a sustainable way without increasing future pressure on the State; and if he will make a statement on the matter. [11777/26]
Amharc ar fhreagraI propose to take Questions Nos. 464 and 466 together.
The 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 SIAs and draw upon best practice in other countries who operate successful savings accounts. Officials in the Department of Finance are currently developing this roadmap and its findings will be used to identify next steps on this matter.
465. Deputy Barry Heneghan asked the Tánaiste and Minister for Finance whether his Department has assessed how the combined impact of exit tax, deemed disposal, capital gains tax and dividend taxation affects young people who are trying to save or invest over the long-term for a first home; and if he will make a statement on the matter. [11776/26]
Amharc ar fhreagraThe Deputy may be aware of this Government's commitment to support and encourage retail investment. Work is continuing on the development of a 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 (including the taxation regimes referenced in the question) 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 in future budgets.
467. Deputy Louis O'Hara asked the Tánaiste and Minister for Finance whether the EU's new small parcels customs duties (details supplied) will be applied to businesses and individuals importing such parcels from Britain; whether there is a list of products exempted from this new rule; whether businesses and individuals engaged in all-island trade will be impacted; the work his Department has undertaken on this issue; and if he will make a statement on the matter. [11782/26]
Amharc ar fhreagraThe Customs Reform Package was published by the European Commission on 17 May 2023. The package addresses the pressures that customs in the EU face today, including the growth in e-commerce, and aims to strengthen the Customs Union's ability to safeguard the Single Market by ensuring Member States’ customs authorities act as one. Trilogue negotiations are ongoing under the Cyprus Presidency.
The first phase of the proposal will begin in mid-2028 when the central EU Customs Data Hub will open for e-commerce consignments. However, given the challenges posed by the exponential growth in e-commerce, it was agreed at the Economic and Financial Affairs Council (ECOFIN) on 12 December 2025 that, as a transitional measure, a fixed Customs Duty of €3 on small parcels valued at less than €150 entering the EU, largely via e-commerce, would apply from 1 July 2026. This will include imports to Ireland from Great Britain.
This transitional measure responds to the fact that such parcels are currently entering the EU duty free, leading to unfair competition for EU sellers, health and safety risks for consumers and environmental concerns. This measure will stay in place until the permanent arrangement for parcels using the EU Customs Data Hub enters into force in mid-2028.
Under the Protocol on Ireland and Northern Ireland, Northern Ireland legally remains part of the customs territory of the United Kingdom and effectively remains within the EU Single Market for the movement of goods only. This means that for trade in goods between Ireland, Northern Ireland and the EU there are no customs declarations, tariffs, customs checks or controls. Therefore, there is no impact on all-island trade as a result of the removal of the €150 de minimis customs threshold.
468. Deputy Barry Ward asked the Tánaiste and Minister for Finance the position regarding the total level of Exchequer funding spent by his Department on funding NGOs, by organisation, in tabular form; and if he will make a statement on the matter. [11797/26]
Amharc ar fhreagra469. Deputy Barry Ward asked the Tánaiste and Minister for Finance the position regarding the total level of Exchequer funding spent on funding NGOs by his Department, in each of the years since 2022, in tabular form; and if he will make a statement on the matter. [11815/26]
Amharc ar fhreagra470. Deputy Barry Ward asked the Tánaiste and Minister for Finance the position regarding the assessments that are carried out to determine the level of Exchequer funding that any NGO receives from his Department on an annual basis; and if he will make a statement on the matter. [11833/26]
Amharc ar fhreagraI propose to take Questions Nos. 468, 469 and 470 together.
I wish to inform the Deputy that my Department does not fund any NGOs.
