Written Answers Nos. 216 - 222
217. Deputy Malcolm Byrne asked the Tánaiste and Minister for Finance the action that is being taken by his Department to improve financial literacy in Ireland, particularly in terms of activity like switching financial products including mortgages and insurance; and if he will make a statement on the matter. [39641/26]
Amharc ar fhreagraMy Department published Ireland’s first National Financial Literacy Strategy in February 2025.
The mission of this five-year strategy is to improve financial literacy by working with Ireland’s financial literacy ecosystem – increasing cooperation, coordination and cohesion among stakeholders – and thereby supporting greater overall financial wellbeing and resilience.
The Department of Finance worked closely with a range of public and private sector organisations throughout the strategy’s development. This included educators, the financial services sector, civil society and Government departments and agencies. This engagement continues as the strategy is implemented.
Regarding financial product switching, the strategy supports and promotes stakeholders working in this area. Examples of this work are highlighted in the Strategy's 2025 Action Plan including Money Tools on the Competition and Consumer Protection (CCPC)'s website.
The CCPC's Money Tools allow consumers to compare different financial products - including mortgages - from providers. The Money Tools thereby support first time buyers, switchers and movers to identify appropriate credit choices.
The CCPC also runs a financial education programme called Money Skills for Life. This programme - delivered to workplaces and community groups - covers a range of topics including switching and shopping around for insurance and mortgages.
The review of the 2025 Action Plan and a new action plan for 2026/2027 building on the success of the Strategy's first year is being finalised at present.
In addition to ongoing work within the National Financial Literacy Strategy, my Department has also published the Action Plan on Insurance Reform. A key focus of the Action Plan on Insurance Reform is engagement with key stakeholders to enhance transparency, improve financial literacy, and promote affordability across all types of insurance.
To this end, Government recently published a new Motor Insurance Transparency Code. This code was developed by a working group comprising insurers and intermediaries, with the support from the Central Bank of Ireland and my Department. The Code is designed to enhance trust, clarity and transparency in how motor insurance premiums are communicated to consumers.
While the Motor Insurance Transparency Code currently applies to private motor insurance policies, other insurers and intermediaries are encouraged to consider extending the code's principles to other insurance products.
The implementation of the Transparency Code is intended to enhance understanding of the factors that influence premiums, improve consumers’ understanding of motor insurance policies, and contribute to improved financial literacy more broadly.
218. Deputy Willie O'Dea asked the Tánaiste and Minister for Finance for an update on the development of the next Ireland for Finance Strategy; the timeline for its launch; and if he will make a statement on the matter. [39632/26]
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.
The vision set out in the strategy was to grow and expand Ireland’s position as a global financial services hub. The sector now has approximately 63,000 employed, a growth of 80% since 2015.
In line with Programme for Government commitments, the Department of Finance is preparing a new Ireland for Finance Strategy for the period 2026-2030.
The public consultation period for the new Ireland for Finance strategy concluded in September with 57 submissions received. This has been supplemented by significant input from a wide range of bilateral, national and international stakeholder engagements, including the standing quarterly Ireland for Finance Joint Committee forum.
Analysis of the submissions, stakeholder engagement and wider research is informing the development of a new strategy. The strategy will introduce targeted policy measures which will look to build on our position as a leading global financial centre. While the new Ireland for Finance strategy is still under development, ambitions of the strategy will be for Ireland to:
• Remain a competitive and trusted global international financial services centre;
• Have capacity to scale and attract expertise to enable economic growth in EU;
• Leverage technological capability to support digital transformation; and
• Develop and deepen links with domestic businesses and citizens.
Officials are now in the process of finalising the new Ireland for Finance strategy. Once approved by Government, I anticipate publication of the strategy at some point over the summer.
219. Deputy Aindrias Moynihan asked the Tánaiste and Minister for Finance if his attention has been drawn to the VFI proposed on-trade sustainability scheme as a means of helping rural pubs; and if he will make a statement on the matter. [39880/26]
Amharc ar fhreagraMy Department receives proposals from a wide range of stakeholders in advance of each Budget and all are given consideration as part of the annual policy cycle. I am aware of the submission from the Vintners’ Federation of Ireland (VFI), which outlines a proposal for a payable tax credit for pubs. The proposed payable credit would be linked to the number of draught product kegs purchased by a business, subject to a per premises cap.
Proposals for new tax expenditures are examined by reference to my Department’s Tax Expenditure Guidelines, which outline the Government’s approach to when tax expenditures are best used, noting that these narrow the tax base, and how they should be evaluated.
In the case of a proposal for a targeted tax incentive, such as that put forward by the VFI, consideration must also be given to European State aid requirements. Measures that confer a selective advantage on a specific sector have the potential to constitute a State aid and therefore could not be introduced unless compliant with an existing framework or undertaking a full notification process.
Additionally, any tax credit given to rural pubs, or indeed to all pubs, and which is based on the supplies of alcohol products to those pubs, would potentially be contrary to the Alcohol Structures Directive if its effect, in practice, is to give relief from the rate of alcohol excise paid on alcohol products.
The Alcohol Structures Directive establishes a harmonised framework for the taxation of alcohol across the EU. It does not permit the taxation of alcohol to be differentiated based on the point of consumption. Accordingly, it is not legally permissible for Ireland to apply reduced excise duty rates to alcohol sold in pubs, restaurants, or other licensed premises, as this would be contrary to the requirements of the Directive.
It is worth noting that there has been no general increase in excise duty rates for alcohol since 2014. While the retail price of beer has risen over that period, the excise duty has remained unchanged and, therefore, the total tax as a percentage of the retail price of each pint is now lower than it was more than a decade ago.
The Government is conscious of the challenges facing all businesses in the current economic climate, and the Cost the Business Advisory Forum is working to look at the structural issues that are driving up costs and the steps that could be taken to mitigate them. A range of direct expenditure supports are also available to businesses, and details can be found online on the National Enterprise Hub.
Notwithstanding the above, the matters raised in the proposal will continue to inform ongoing policy considerations in the context of the budgetary process.
220. Deputy Maeve O'Connell asked the Tánaiste and Minister for Finance if his Department will consider reforming the payment deadline system for inheritance tax. [39605/26]
Amharc ar fhreagraCapital Acquisitions Tax (CAT) is the tax that applies to gifts and inheritances in Ireland. CAT is payable by the beneficiary of a gift or inheritance.
The date of a gift is normally the date it is received. The date of an inheritance is usually the date of death of the person leaving the inheritance. These dates determine the CAT rates and the Group thresholds that apply.
However, the date by which CAT is payable is determined by reference to the “valuation date” of a gift or inheritance. Additionally, the valuation date is the date on which the market value of the property included in the gift or inheritance must be established for CAT purposes.
Section 30 of the Capital Acquisitions Tax Consolidation Act (CATCA) 2003 contains the rules for determining the valuation date. The valuation date depends on the circumstances of a case and is not a fixed date that applies to all gifts and inheritances. In the case of an inheritance, it is date on which the executors of the will are entitled to retain the property for the benefit of the beneficiary, which is generally the date on which probate or letters of administration are granted. However, in some circumstances the valuation date can be earlier.
Section 46 CATCA 2003, provides that where the valuation date occurs between 1 January and 31 August, CAT is payable by 31 October in the same year, and where it occurs between 1 September and 31 December, CAT is payable by 31 October in the following year. Therefore, in circumstances where the valuation date in relation to property comprised in an inheritance falls on or before 31 August, any CAT that is payable on the inheritance must be paid by 31 October in the same year.
CATCA 2003 makes provision for payment of a CAT liability in instalments in certain circumstances. For example, where a benefit consists of real property, taxpayers have a statutory entitlement to pay the CAT liability by instalments. Monthly instalment payments for up to 5 years may be allowed subject to the payment of interest at an annual rate of 8%. A lower rate of interest applies where the benefit consists of “agricultural property” or “relevant business property”, as defined in CATCA 2003.
In addition, I am advised by Revenue that it may allow payment of CAT by instalments over a longer period in exceptional circumstances where the tax cannot be paid without excessive hardship. In such circumstances, Revenue may allow payment to be postponed for such period and on such terms as appropriate. Revenue will consider each case on its merits, taking into account both the financial circumstances of the beneficiary and the nature of the gift or inheritance involved.
The Deputy should note that the Capital Acquisitions Tax is kept under review by my officials.
221. Deputy Louis O'Hara asked the Tánaiste and Minister for Finance when the new derelict property tax will be introduced; and if he will make a statement on the matter. [40150/26]
Amharc ar fhreagraIn 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. It will replace the Derelict Sites Levy and will be collected by the Revenue Commissioners.
Officials in my Department continue to engage with officials in the Department of Housing, Local Government and Heritage and in Revenue on the design of this tax. A key issue is that the tax must apply in a consistent manner to all properties 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 advice received 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 properties back into use and ultimately contribute to our housing stock.
222. Deputy Louis O'Hara asked the Tánaiste and Minister for Finance to outline the measures his Department will take to address the rising cost-of-living; and if he will make a statement on the matter. [40151/26]
Amharc ar fhreagraGovernment is acutely aware that households and businesses are feeling the impact of rising energy prices.
Government has already intervened to help absorb the impact of rising energy prices with two packages of measures worth over €750 million.
The first package of supports introduced in March reduced the excise on fuel, cut the NORA levy to a nominal amount, enhanced the diesel rebate scheme and extended the fuel allowance season by an additional four weeks.
The second package of measures introduced in April further cut the tax on fuel bringing the total reduction in diesel to 32 cent per litre, 27 cent per litre of petrol and 7.4 cent per litre of green diesel.
Government also delayed the scheduled carbon tax increase to later in the year, while supports schemes targeted at the agricultural and transportation sectors were also introduced. The Road Transporters Support Scheme will provide direct payments to haulage and coach operators, while the Fuel Subsidy Support Scheme will assist farmers, agricultural contractors and fishers.
The measures introduced in response to rising energy prices are deliberately time-bound and will be reviewed on a rolling-basis.
Government will continue to monitor the situation and adjust its response as appropriate. This will allow us to respond swiftly and decisively whilst ensuring our overall approach to budgetary policy remains sustainable and balanced.
