Written Answers Nos. 131-150
131. Deputy Aindrias Moynihan asked the Tánaiste and Minister for Finance if he will review the farmer VAT flat rate addition, given concerns that it places financial pressure on smaller farmer incomes; and if he will make a statement on the matter. [68541/26]
Amharc ar fhreagraAs the Deputy will be aware, it is a longstanding practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that may be the subject of Budget decisions.
However, I can confirm that the level of the flat-rate addition is calculated in accordance with the EU VAT Directive and is set out in Irish VAT legislation.
It is reviewed annually on the basis of macro-economic data received from the Central Statistics Office (CSO) for the preceding three years in line with the EU VAT Directive requirements.
Following such review, if needed, the level of the flat-rate percentage is re-set under law, in order to ensure that the Scheme continues to allow appropriately for the unregistered farming sector to be fully compensated, on an overall basis, for the VAT it incurs across all its inputs – those inputs being variously taxed at the VAT standard rate of 23%, the reduced rate of 13.5%, the second reduced rate of 9%, the livestock rate of 4.8%, and the zero rate.
Some years the review results in an upward re-set of the flat rate, some years it results in a downward re-set.
It is important to note that any change to the farmers flat rate addition is determined by the requirements of EU VAT law, that the VAT Directive requires that the flat rate scheme is compensatory rather than subsidising, and that it does not permit the Minister of the day to change the manner in which it is calculated.
132. Deputy Matt Carthy asked the Tánaiste and Minister for Finance the current total excise (carbon and non-carbon component) on home heating oil, petrol, diesel and green diesel; the amount received by the Exchequer from these taxes in each of the years from 2020 to date in 2026; and the total amount he plans to increase each by, up until 2030. [68616/26]
Amharc ar fhreagraFull detail of Exchequer returns with amounts in tabular form will be sent to the Deputy directly covering 2025 and 2026 to date. I am advised by Revenue that the receipts collected in respect of Mineral Oil Tax (MOT) each year up to 2024 are published on the Revenue website. The current excise rates on home heating oil, petrol, diesel and green diesel are also available on Revenue’s website.
As the Deputy will be aware, this Government has delivered one of the largest support packages in the EU per head capita with over €1.3 billion in supports. In so doing, we have:
• deferred the 1 May Carbon Tax increase on home heating fuels;
• reduced excise duty on diesel, petrol and ‘green diesel’;
• enhanced the Diesel Rebate Scheme for hauliers and passenger transport operators - mitigating price increases in these sectors and the associated knock-on effects they have on food and passenger transport prices;
• funded payments to road transport operators under the Road Transporters Support Scheme;
• funded payments to farmers, farm contractors and fishers under the Fuel Income Support Scheme; and
• reduced the NORA Levy; and
• extended the winter heating season by four weeks, increasing the total yearly payment to €1,216.
Government’s response has been made possible because of the careful management of our public finances in recent years. We have run surpluses for consecutive years. Running surpluses has not always been popular, however it has given us the flexibility and the agility to respond swiftly and forcefully to this shock.
As the Deputy will be aware, various options are being considered by Government ahead of the Budget next week, particularly what levers we can use to ease the burden of rising fuel costs on households.
The current carbon tax trajectory is set out in the Finance Act 2020, which was further amended by Financial Resolution on 28 August 2026.
In response to the current fuel crisis, the 1 May 2026 carbon tax increases were postponed to 14 October 2026.
Carbon tax rates up to 2030 on fuels liable to MOT are available on Revenue’s website.
As currently legislated, over the remainder of the trajectory, carbon tax increases will, inclusive of VAT at the current 23% rate, add 8.1 cents to a litre of petrol.
The total VAT inclusive increase on a litre of auto diesel will be 9.6 cents.
The carbon tax increases up to and including 2030 will add a total of 10.7 cents, inclusive of VAT at the current 13.5% rate, to a litre of heating kerosene.
The impact of the carbon tax trajectory on a litre of MGO/green diesel will add a VAT inclusive total of 11.2 cents.
As I have already signalled there are a number of issues that we are actively endeavouring to advance to provide assistance and certainty to people when it comes to energy, while also being honest with people that there is no government in the world that can absorb all of the impact of a global energy shock.
In considering these matters, we will need to have due regard to the overall budgetary position as well as EU legislative frameworks.
As the Deputy knows, the best way to manage the State's finances is as part of a carefully considered annual Budget process, which will be delivered next week.
133. Deputy Tony McCormack asked the Tánaiste and Minister for Finance his plans to implement the recommendations of the Cost of Business Advisory Forum report that come under the remit of his Department. [68453/26]
Amharc ar fhreagraThe Government is conscious of the challenges facing all businesses in the current economic climate. The Programme for Government sets out a range of commitments to support small and medium enterprises (SMEs) and to promote innovation, economic growth and entrepreneurship, and maintaining competitiveness. This is an ongoing process.
The Report of the Cost of Business Advisory Forum was published on 28 August. This is an industry-led report, facilitated by the Minister for Enterprise, Tourism and Employment and was established as one of the commitments under the Programme for Government to examine the factors contributing to the cost of doing business in Ireland and to identify practical measures to improve competitiveness.
The Forum brought together business representative bodies, from retail and tourism to agriculture and the multinational sector, alongside Government Departments and State Agencies. It was designed to facilitate a solution focused dialogue between businesses, policymakers, regulators and experts, who have insight into the factors driving the rising costs of business in Ireland. A number of meetings of the Forum took place since its establishment in June 2025, and focused on Insurance Costs, Regulation and Planning, Water Services, Legal Costs, Regulation and Compliance, and Banking, Payments and Financial Services. The report contains 63 recommendations aimed at reducing business costs, strengthening competitiveness and easing regulatory burdens, a number of which come within my Department’s remit.
My colleague, the Minister for Enterprise, Trade and Employment has contacted the Minister for Finance, Tánaiste Harris, as well as other relevant Ministers to assess the feasibility, resource implications and potential impacts of individual recommendations and identify priorities for action. As a Government, we are committed to progressing practical measures that reduce the cost of doing business, enhance competitiveness and support a favourable operating environment for SME's and enterprise.
I am advised that the Forum will reconvene in January 2027 and review progress made to date.
134. Deputy Paul McAuliffe asked the Tánaiste and Minister for Finance his plans to improve transparency for SME business customers in relation to fees, charges and bills for banking and payment services. [68502/26]
Amharc ar fhreagraThe Minister for Finance does not have a direct function in the relationship between financial service providers and their customers and accordingly cannot adjudicate on individual issues.
However, I understand that the merchant service charge is the fee charged by an acquirer to a business for processing card transactions. Acquirers are independent commercial entities operating in a competitive market. The amount of the merchant service charge varies by acquirer, often depending on the volume of card transactions the retailer accepts.
One aspect of the merchant service charge is the interchange fee, which is charged by card issuing banks to businesses for accepting card payments. Since 2015, interchange fees on consumer debit and credit cards have been capped. Under the Interchange Fee Regulation, Ireland set the maximum interchange fee at 0.1% of the value of transactions for domestic consumer debit cards and 0.3% of the value of transactions for consumer credit cards. However, the Interchange Fee Regulation does not cover commercial debit and credit cards.
There is no domestic card payment scheme and Irish card payments are primarily facilitated by international card payment schemes such as VISA and MasterCard. The Central Bank seeks independently verified transaction and fee information from international card schemes operating in Ireland to ensure that they are operating in compliance with the Interchange Fee Regulations.
While regulated entities must comply with the rules regarding interchange fees, the merchant service charge is a commercial decision for each service provider. Acquiring services is a competitive market and businesses in general, and smaller businesses in particular, could stand to benefit from lower rates by switching provider.
In relation to the transparency on fees or charges, there are requirements on the breakdown of charges under the European Union (Payment Services) Regulations 2018 (PSD2) - these payment rules are currently being revised and enhanced at European level as part of the third revision of the Payment Service Directive (PSD3)/Payment Service Regulation.
Retail banks operating in Ireland are subject to regulatory supervision by the Central Bank of Ireland. Under section 149 of the Consumer Credit Act 1995, credit institutions must notify the Central Bank if they wish to
• introduce any new customer charge for providing certain services; or
• increase any existing customer charge for providing certain services.
The Central Bank advises that each notification received by the Central Bank is assessed in accordance with the specific criteria set out in section 149 of the Consumer Credit Act 1995. The Central Bank may either approve (in full or at lower levels than requested) or reject a credit institution’s application under section 149.
Credit institutions are free to impose any pricing differentials for the service up to the permitted maximum and are free to waive charges at their discretion for commercial or competitive reasons.
The Central Bank’s modernised Consumer Protection Code 2025, which took effect on 24 March 2026, materially widened the population of small businesses benefiting from the protections of the Consumer Protection Code.
It increased the number of small businesses generally brought within the definition of “consumer” by increasing the threshold for inclusion within the definition from annual turnover of €3m to €5 million. The modernised Code contains strong fee-transparency rules, which will apply to those SMEs within its scope.
135. Deputy Paul Murphy asked the Tánaiste and Minister for Finance if he will reconsider increasing taxes on wealth and capital in Budget 2027, in view of recent research by an organisation (details supplied) that predicts increases in returns to capital as a result of AI adoption and recommends diversifying the tax base by expanding taxes on wealth and capital; and if he will make a statement on the matter. [68603/26]
Amharc ar fhreagraDeputy, I note you are referring to the recent paper published jointly by the ESRI and the Department of Finance entitled Artificial Intelligence and Income Inequality which looks at a range of potential scenarios around the effects of AI on employment, wages, and capital income.
The paper models scenarios for job losses distributed across occupation sectors relative to their AI exposure, and wage gains distributed relative to occupations’ AI complementarity.
Overall, the paper finds that in the short-term, AI adoption could lead to a decline in household disposable income if the effects of employment loss outweigh productivity-driven wage growth and increases in capital income.
That said, the paper finds that Ireland’s tax and welfare system is well placed to help cushion AI-related income losses, in particular for low-income households. Income losses for the highest income households are also partly cushioned by the modelled increase in capital income.
On the broader issue of introducing a stand-alone wealth tax, as the Deputy will be aware, wealth is already taxed in a number of ways in Ireland. These include Capital Gains Tax, Capital Acquisitions Tax and Local Property Tax. Stamp Duty also acts as a tax on wealth, including that charged on the acquisition of the shares, stocks and marketable securities of Irish registered companies, and on the acquisition of property both residential and non-residential.
The revenue raised from a wealth tax, regardless of the form it takes, may not be additional to that raised by the existing forms of wealth taxation, as the revenues from those taxes could be impacted by the introduction of a wealth tax.
It is also important to note that Ireland has one of the most progressive taxation systems and social transfers of any EU or OECD country, which contributes to the redistribution of income and to the reduction of income inequality.
In 2016, my Department worked with the ESRI to conduct a research project into the distribution of wealth in Ireland and the potential implications of a wealth tax. Recognising the passage of time that has elapsed since this research project was undertaken, my Department and the ESRI are currently conducting analysis under its Joint Research Programme of the potential impact of a tax on household wealth in Ireland. This will include scenario and distributional analysis under a range of wealth tax scenarios.
It is expected that a draft paper will be completed and published before the end of the year and I will consider the analysis in due course.
The Government has no plans to introduce a new Wealth Tax in place of, or alongside, those taxes already in place which are charged on the income from, or the transfer of, wealth, although all taxes and potential taxation options are kept under constant consideration.
136. Deputy Erin McGreehan asked the Tánaiste and Minister for Finance if he will report on plans to amend the Irish Collective Asset-management Vehicles Act 2015 and other legislation to facilitate the adoption of tokenisation in Ireland’s fund industry. [68262/26]
Amharc ar fhreagraFunds tokenisation is emerging as a potentially significant innovation in global capital markets, with the potential to transform how investment funds are issued, administered, traded and settled. Tokenisation, the process whereby an underlying asset or pool of assets, tangible or intangible, is converted into digital “tokens” that act as its proxy – could fundamentally reform how capital markets operate, enabling real-time trades; increasing transparency and liquidity; expediting clearing and ultimately providing for atomic settlement.
As part of the Saving and Investment Union (SIU) strategy, the European Commission has published the Market Integration and Supervision Package (MISP). This package will amend 18 pieces of existing EU financial services legislation across trading, clearing, settlement and assets management.
Amending the DLT framework among other related measures forms part of the MISP proposal which seeks to turn the use of DLT in capital markets from a limited “sandbox” into something that can be scaled across the single market, The DLT Pilot Regime is being amended so that tokenised securities can be issued, traded, and settled at meaningful scale. Other changes amend existing EU financial services legislation, making them technologically neutral, allowing for the use of DLT and other technologies. This proposal is currently under negotiation at EU level.
The Funds Sector 2030 Report included a recommendation that industry should continue to engage with the Central Bank of Ireland and the Department of Finance, as necessary “with a view to mapping out a pathway for adoption of tokenisation”.
The new Ireland for Finance Strategy, ‘Vision 2030 – Renewed and Refocussed for a Digital Age’ was launched on 25 August 2026 and identifies tokenisation of investment funds and financial assets as a high-priority area for Ireland's financial services sector and positions it as a key part of the country's digital finance agenda.
The Government has committed to supporting the development of tokenisation of investment funds by conducting an examination of relevant domestic legislation, including the Irish Collective Asset Management Vehicle Act (ICAV Act) and the Companies Act with a view to the modernisation of the legislation where needed.
In March this year, the Central Bank published a Discussion Paper on tokenisation on 5 March 2026. Officials in the Department are engaging closely with the CBI on the matter, including the responses to the Discussion Paper and these will be used to inform next steps.
I can assure you that this is an area of active consideration within the Department, with officials working closely with the Central Bank of Ireland and engaging with international counterparts. This ongoing work is helping to inform the development of an appropriate legislative approach, and I hope to be able to provide greater clarity on timelines in the near future.
137. Deputy Cathy Bennett asked the Tánaiste and Minister for Finance the total amount contributed to the EU MFF by Ireland in each of the years 2019 to 2025 and to date in 2026; the total receipts; and if he will make a statement on the matter. [68605/26]
Amharc ar fhreagra140. Deputy Cathy Bennett asked the Tánaiste and Minister for Finance if he will report on his engagement regarding the EU Multiannual Financial Framework post-2027. [68610/26]
Amharc ar fhreagraI propose to take Questions Nos. 137 and 140 together.
As the Deputy will recall from my answer on 28 July 2026, Ireland was a significant net beneficiary from the EU budget since accession in 1973, until 2013 when we became a net contributor reflecting our economic transformation over fifty years of membership.
The EU budget finances our common activities within the continent and further afield. It supports our food security and farming and rural livelihoods through the Common Agricultural Policy. It develops our regions, spreading economic growth across the continent. It finances key transport and energy infrastructure, connects our young people and our innovators through flagship programmes like Erasmus and Horizon Europe, and boosts our businesses across their investment journeys. It provides support to those in need outside our borders, through development and humanitarian assistance and to our close neighbour Ukraine. Through the Brexit Adjustment Reserve, it helped Ireland to weather the uncertainty of the UK's EU departure.
These benefits are above and beyond the vast gains that have arisen from Ireland’s EU membership such as the access to single market, which makes it easier for Irish businesses to trade in European markets.
The MFF operates in seven-year cycles, and we are now approaching the end of the 2021-2027 period and approaching the next period.
Ireland contributed €2.4 billion, €2.6 billion, €3.5 billion, €3.6 billion, €3.7 billion, €3.4 billion and €3.5 billion to the EU budget over 2019 to 2025 respectively and Ireland has contributed €2.8 billion to date in 2026. These year-end figures are published on an annual basis in the Finance Accounts.
My Department collects data on Ireland’s EU Budget receipts from the relevant Government Departments for publication in the annual EU Transactions Reports.
Ireland received of the order €1.7 billion, €1.9 billion, €2.4 billion, €2 billion ,€1.7 billion and €1.9 billion from the EU budget over 2019 to 2024 respectively. These figures include areas such as agriculture, cohesion and Erasmus+.
They do not include funds directly managed by the European Commission, such as Horizon Europe and the Connecting Europe Facility, which come on top of those numbers. These figures can differ from figures published by the Commission due to differences in accounting practices.
My Department will publish receipts data in respect of 2025 and 2026 in subsequent editions of the EU Transactions Report in the coming years.
In regards to the next Multiannual Financial Framework, negotiations have been ongoing at EU-level since July of last year on the European Commission’s proposal for the next MFF covering the years 2028 to 2034.
There has been extensive coordination across Government to comprehensively determine Ireland's priorities. These priorities have been thoroughly represented in our engagements with the Commission and our EU counterparts at all levels. These include but are not limited to: a strong and ringfenced Common Agricultural Policy and Common Fisheries Policy, the continuation of the PEACEPLUS programme in Northern Ireland and the border counties of Ireland, funding for competitiveness and research based on the principle of excellence, sustained support for Ukraine and continued development and humanitarian assistance.
In July of this year Ireland assumed its role as Presidency of the Council of the European Union. In this context, we act as an honest broker and work constructively with Member States, EU institutions and other stakeholders to facilitate progress in negotiations on the wider MFF package.
In recent weeks, I have engaged constructively with the European Commission and Ministerial counterparts across the EU, as well as Members of the European Parliament. I, as well as my colleagues in Government, will continue to do so in the coming weeks and months in order to make substantive progress towards agreement on the MFF by the end of the year.
138. Deputy Pádraig O'Sullivan asked the Tánaiste and Minister for Finance the additional VAT receipts accruing to the Exchequer for each one cent per litre increase in the pre-tax price of petrol and diesel; and the total additional VAT collected on road fuels in 2026 to date as a result of higher wholesale prices. [68467/26]
Amharc ar fhreagraTo date, this Government has delivered one of the largest support packages in the EU per head capita with over €1.3 billion in supports. In so doing, we have:
• deferred the 1 May Carbon Tax increase on home heating fuels;
• reduced excise duty on diesel, petrol and ‘green diesel’;
• enhanced the Diesel Rebate Scheme for hauliers and passenger transport operators - mitigating price increases in these sectors and the associated knock-on effects they have on food and passenger transport prices;
• funded payments to road transport operators under the Road Transporters Support Scheme;
• funded payments to farmers, farm contractors and fishers under the Fuel Income Support Scheme; and
• reduced the NORA Levy; and
• extended the winter heating season by four weeks, increasing the total yearly payment to €1,216.
This Government has shown that we are not afraid to act when the circumstances demand action, but we have also been clear that the best way to manage the State's finances is as part of a carefully considered annual Budget process, which will be delivered next week.
I am advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible to provide the VAT yield on petrol and diesel using taxpayer information alone.
However, using Revenue and third-party data sources, a tentative estimate of the VAT generated will be provided to the Deputy.
As the Deputy will be aware, schemes such as the VAT deduction scheme, the double income tax relief scheme and the Diesel Rebate Scheme mean that a significant portion of revenue raised from taxation of fuels is repaid to economic operators who are availing of these schemes.
As such the most up to date estimate of VAT arising from fuel prices is roughly €2.25 million per week.
139. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance to provide an update on the reason the vacant and derelict property taxes have failed to move the dial on the scourge of vacancy and dereliction in our cities, towns and villages. [68619/26]
Amharc ar fhreagra141. Deputy Joe Neville asked the Tánaiste and Minister for Finance if his Department will consider increasing the Derelict Property Tax amount to discourage property owners from leaving units vacant. [68635/26]
Amharc ar fhreagra148. Deputy Louis O'Hara asked the Tánaiste and Minister for Finance when the new Derelict Property Tax will be introduced. [68496/26]
Amharc ar fhreagra180. Deputy Thomas Gould asked the Tánaiste and Minister for Finance for an update on the work he has undertaken to introduce the new Derelict Property Tax. [68489/26]
Amharc ar fhreagraI propose to take Questions Nos. 139, 141, 148 and 180 together.
Vacancy and dereliction negatively impact communities across Ireland. For this reason, Government has acted to promote the remediation and increased use of vacant and derelict property, as provided for in the 2023 Vacant Homes Action Plan and as documented in subsequent annual updates to that Plan. In addition to the successful grant and funding schemes, a Vacant Homes Tax was introduced in 2022. I also intend to introduce a new Derelict Property Tax in this autumn’s Finance Bill.
The Vacant Homes Tax is currently charged at seven times a property's base Local Property Tax charge. The tax operates on a self-assessment basis, where the number of properties in scope and the tax payable are dependent on the self-assessed returns submitted by property owners.
Since its introduction, there has been a decrease in the number of properties liable across each subsequent chargeable period. This is not unexpected, given the behavioural nature of the tax, its objective of bringing vacant residential properties into use, and the level of demand for housing in the State.
In respect of the new Derelict Property Tax, further details will be announced on Budget Day. The policy objective of this new tax is regeneration; it is not being designed to be revenue raising. Local authorities will continue to have a key role in relation to the identification and registration of derelict property, while Revenue will be responsible for the administration, collection and enforcement of the tax.
Work on the Derelict Property Tax is ongoing, with frequent engagement between my Department, the Department of Housing, Local Government and Heritage, and the Revenue Commissioners. It is hoped that this tax will paint a clear picture of the level of dereliction across our towns and cities. The data collected will help inform local and national decisions regarding long-term vacant and derelict properties.
I will continue to work with my colleagues in Government to ensure that any further interventions in the housing market are appropriately calibrated, represent the best use of public resources and boost the supply of much-needed housing in the State.
This new measure will build on the progress that has been made to date returning vacant and derelict properties back into use. Some key areas of progress in the past year include:
• Successful delivery of the Vacant Property Refurbishment Grant, through the Croí Cónaithe Towns Fund. To end of Q2 2026, there were 6,300 grants issued, amounting to close to €350 million paid out to support people bringing vacant and derelict properties back into use as homes.
• The €150 million Urban Regeneration and Development Fund which has been made available for local authorities to acquire vacant or derelict properties and sites for re-use or sale. More than 1,300 vacant and derelict properties have now been identified and approved under Call 3 of the Fund, with an estimated residential yield of over 5,000 homes by 2030.
These and other initiatives outlined in the Vacant Homes Action Plan Progress Report are yielding significant results. Across the country, cities and towns are being revitalised and vacancy levels are declining as more and more empty properties are being brought back into use as homes.
142. Deputy Pádraig O'Sullivan asked the Tánaiste and Minister for Finance if his Department has assessed proposals for a mechanism under which no further VAT or excise would be applied to petrol and diesel once the retail price reaches a set threshold, such as €1.70 per litre; the estimated annual cost to the Exchequer of such a mechanism at current and forecast pump prices; and his Department's view on its compatibility with the EU VAT Directive and the Energy Taxation Directive. [68466/26]
Amharc ar fhreagraMy Department is satisfied that the mechanism as outlined by the Deputy would be in breach of the VAT Directive. There is no mechanism within the Directive to set a threshold beyond which no VAT would be collected.
143. Deputy Shay Brennan asked the Tánaiste and Minister for Finance the action he plans to take further to his Department’s Funds Sector 2030 review recommending developing a pathway to the adoption of tokenisation. [68284/26]
Amharc ar fhreagra160. Deputy Aisling Dempsey asked the Tánaiste and Minister for Finance the steps he is taking regarding tokenised money market funds. [68281/26]
Amharc ar fhreagra161. Deputy Willie O'Dea asked the Tánaiste and Minister for Finance his plans to enable the funds sector to exploit the benefits of tokenisation and other digital innovation. [68361/26]
Amharc ar fhreagra162. Deputy Emer Currie asked the Tánaiste and Minister for Finance the expected timeline for the planned legislation to support the tokenisation of the fund sector as committed to in the new Ireland for Finance Strategy. [68580/26]
Amharc ar fhreagraI propose to take Questions Nos. 143, 160, 161 and 162 together.
Funds tokenisation is emerging as a potentially significant innovation in global capital markets, with the potential to transform how investment funds are issued, administered, traded and settled. Tokenisation, the process whereby an underlying asset or pool of assets, tangible or intangible, is converted into digital “tokens” that act as its proxy – could fundamentally reform how capital markets operate, enabling real-time trades; increasing transparency and liquidity; expediting clearing and ultimately providing for atomic settlement.
As part of the Saving and Investment Union (SIU) strategy, the European Commission has published the Market Integration and Supervision Package (MISP). This package will amend 18 pieces of existing EU financial services legislation across trading, clearing, settlement and assets management.
Amending the DLT framework among other related measures forms part of the MISP proposal which seeks to turn the use of DLT in capital markets from a limited “sandbox” into something that can be scaled across the single market, The DLT Pilot Regime is being amended so that tokenised securities can be issued, traded, and settled at meaningful scale. Other changes amend existing EU financial services legislation, making them technologically neutral, allowing for the use of DLT and other technologies. This proposal is currently under negotiation at EU level.
The Funds Sector 2030 Report included a recommendation that industry should continue to engage with the Central Bank of Ireland and the Department of Finance, as necessary “with a view to mapping out a pathway for adoption of tokenisation”.
The new Ireland for Finance Strategy, ‘Vision 2030 – Renewed and Refocussed for a Digital Age’ was launched on 25 August 2026 and identifies tokenisation of investment funds and financial assets as a high-priority area for Ireland's financial services sector and positions it as a key part of the country's digital finance agenda.
The Government has committed to supporting the development of tokenisation of investment funds by conducting an examination of relevant domestic legislation, including the Irish Collective Asset Management Vehicle Act (ICAV Act) and the Companies Act with a view to the modernisation of the legislation where needed.
In March this year, the Central Bank published a Discussion Paper on tokenisation on 5 March 2026. Officials in the Department are engaging closely with the CBI on the matter, including the responses to the Discussion Paper and these will be used to inform next steps.
I can assure you that this is an area of active consideration within the Department, with officials working closely with the Central Bank of Ireland and engaging with international counterparts. This ongoing work is helping to inform the development of an appropriate legislative approach, and I hope to be able to provide greater clarity on timelines in the near future.
144. Deputy Darren O'Rourke asked the Tánaiste and Minister for Finance if he intends to reform deemed disposal tax rules for Irish Investors. [67872/26]
Amharc ar fhreagra168. Deputy Aisling Dempsey asked the Tánaiste and Minister for Finance if he has plans to remove the eight-year deemed disposal rule on investments. [68280/26]
Amharc ar fhreagra169. Deputy Erin McGreehan asked the Tánaiste and Minister for Finance his plans to bring forward changes to the current provisions for deemed disposal as part of Budget 2027. [68264/26]
Amharc ar fhreagra171. Deputy Joe Neville asked the Tánaiste and Minister for Finance if his Department has plans to introduce reforms surrounding deemed disposals in the upcoming Budget. [68576/26]
Amharc ar fhreagraI propose to take Questions Nos. 144, 168, 169 and 171 together.
The final report of the Funds Review, Funds Sector 2030: A Framework for Open, Resilient and Developing Markets Final Report, made recommendations regarding the taxation of investments, including in terms of the deemed disposal rule. It also noted that any changes to the deemed disposal rule require guardrails to protect the Exchequer and ensure that appropriate tax is paid.
As outlined in the recently published Roadmap for Taxation of Retail Investment, measures of this nature are considered as part of the annual budgetary process. Any decision has to consider the Budget ceilings agreed by Government, and the range of options across the entire tax system.
A key aspect of the Roadmap was the confirmation of the key parameters of the proposed new investment account, designed to facilitate increased retail investments. I can confirm that the deemed disposal rule and other relevant investment taxes will not apply to the investment account. Instead, there will be a tax-free threshold, and a low rate of tax applicable to value of the account over the tax-free threshold. Providers will be responsible for operating the tax for investors.
145. Deputy Edward Timmins asked the Tánaiste and Minister for Finance if he will reintroduce indexation for Capital Gains Tax as the current system leads to an unfair tax when there is no real gain. [68630/26]
Amharc ar fhreagraIreland'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 and is payable by the person making the disposal.
Section 556 of the Taxes Consolidation Act 1997 provides a measure of relief for capital gains which are attributable purely to inflation, commonly known as ‘indexation relief’. Finance Act 2003 amended section 556 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.
Indexation relief was ended as a means of gradually broadening the tax base, and it has proved effective in that regard.
It is the case that when indexation was introduced in the 1970s inflation was very high. Since then, inflation has been consistently much lower even taking into consideration the inflationary spikes initiated by the COVID pandemic and recent geopolitical events.
It is also important to bear in mind, that there is no indexation of other taxes such as income tax, corporation tax or Capital Acquisition Tax.
The Programme for Government 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 as part of wider tax policy considerations.
146. Deputy Conor D. McGuinness asked the Tánaiste and Minister for Finance if he will give a commitment that an issue (details supplied) will be specifically considered as part of the Budget process, rather than relying solely on general measures for the hospitality sector. [68517/26]
Amharc ar fhreagra173. Deputy Ryan O'Meara asked the Tánaiste and Minister for Finance if he is considering a tax credit to support smaller rural pubs. [68412/26]
Amharc ar fhreagraI propose to take Questions Nos. 146 and 173 together.
The Department of Finance receives pre-Budget submissions from a wide range of stakeholders in advance of each Budget, and all are given consideration as part of the annual policy cycle.
My Department has received and acknowledged a submission from the Vintners Federation of Ireland outlining a proposal for a payable tax credit linked to the number of draught product kegs purchased by a business, subject to a per premises cap termed the “On-Trade Sustainability Scheme”.
Officials from my Department are considering the proposal and I have met with the VFI and representatives of wider hospitality sector as part of annual Ministerial Pre-Budget engagements for Budget 2027.
Proposals for new tax expenditures are examined by reference to the Department of Finance 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.
Any tax measure related to the supply of alcohol would need to be considered in line with the Alcohol Structures Directive. In the case of a proposal for a targeted tax incentive consideration must also be given to European State aid requirements. These considerations form part of the work underway by my officials to assess the proposal.
It is important to note that there has been no increase in excise duty rates for alcohol since in 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.
It is also important to note that it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
As a general point, the Government is conscious of the challenges facing all businesses in the current economic climate. The Final Report of the Cost of Business Advisory Forum was published recently, and this report contains 63 recommendations aimed at reducing business costs, strengthening competitiveness and easing regulatory burdens. The Government will give careful consideration to its recommendations and will issue a formal response in due course.
Notwithstanding the above, the matters raised in the submission will continue to inform ongoing policy considerations in the context of the budgetary process.
147. Deputy Ruairí Ó Murchú asked the Tánaiste and Minister for Finance to provide an update on the development of the new State-backed savings and investment scheme for ordinary investors. [68199/26]
Amharc ar fhreagra176. Deputy Colm Burke asked the Tánaiste and Minister for Finance to confirm details of the Government's proposed new investment scheme; and when it is likely to be put in place. [68632/26]
Amharc ar fhreagraI propose to take Questions Nos. 147 and 176 together.
Ireland still does not have a sufficiently diversified savings and investment culture. Too much of people’s hard-earned savings remains in low-yield deposits, where inflation can erode value over time. Investment in capital markets can offer households another path to long-term financial wellbeing.
In recognition of the importance of encouraging retail investment, Budget 2026 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% which took effect from 1 January 2026.
The Government’s view that the account should be simple, accessible, tax efficient, easy to administer, transparent on fees and portable across borders where possible. We want to make investing simpler, clearer, and more accessible for ordinary people, and help their hard-earned money work harder for them. The aim is to legislate for the framework in 2026 and to allow accounts to be offered from 2027.
Department officials have continued to engage with experts and a broad range of stakeholders as work is progressing on the development of the account, taking on board the range of ideas on the design of an effective investment account in Ireland that best fits the Irish economy and the needs of Irish households and reflects international best practices. The investment account was a key aspect of the roadmap for the taxation of retail investment, setting 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.
Budget 2026 also included a commitment to publish a roadmap in 2026, setting out the intended approach to simplify and adapt the tax framework to encourage retail investment. This roadmap was published on 31 August 2026. The roadmap also set out the key parameters of the proposed new investment account, acknowledging the need for industry to understand how the account is intended to operate. This information was provided to facilitate the design and introduction of the necessary operational systems by providers in order to allow accounts to be available in 2027.
Further detail on the investment account will be announced as part of Budget 2027 on 6th October.
149. Deputy Peter Roche asked the Tánaiste and Minister for Finance the progress that has been made in reducing the cost and improving the availability of public liability insurance for community and voluntary organisations, including sporting clubs; and whether he is satisfied that insurance reforms are resulting in lower premiums for these organisations. [67434/26]
Amharc ar fhreagraThe Government is committed to ensuring that Ireland’s insurance market remains competitive, transparent and capable of meeting the needs of consumers, businesses, community groups and voluntary organisations.
A key objective of the Government’s insurance reform programme is to create the conditions necessary for greater competition, support existing insurers in growing their operations and encourage new providers to enter the Irish market.
While premium levels continue to be influenced by factors such as claims costs, reinsurance costs, inflation and international market conditions, increased competition can help deliver greater choice and better value for policyholders.
The Government’s Action Plan for Insurance Reform 2025-2029: A Stronger Market, A Fairer Future contains a range of measures aimed at improving both the availability and affordability of insurance, including public liability insurance. These measures focus on strengthening competition, improving transparency and reducing barriers for new market entrants. These actions will foster a more dynamic insurance market that better serves consumers, businesses and community organisations.
A key component of this work is the Office for the Promotion of Competition in the Insurance Market (OPCIM), whose remit has been expanded in line with commitments in the Programme for Government-Securing Ireland’s Future. Working with the Department of Enterprise, Tourism and Employment and IDA Ireland, the OPCIM actively engages with international insurers to encourage entry into the Irish market, broadening the availability of insurance products, diversifying underwriting capacity and supporting more competitive pricing. The Office also facilitates engagement between insurers, brokers and representative bodies and has helped restore insurance availability in sectors that previously faced significant challenges, including childcare, adventure tourism, equestrian activities, inflatable hire and high-footfall hospitality businesses.
In his capacity as Chair of the Office to Promote Competition in the Insurance Market, Minister of State Troy engages on an ongoing basis with insurance companies and brokers to ensure that reforms result in increased competition and availability of cover for businesses. In terms of business and commercial insurance, existing providers have also indicated that they are expanding their risk appetite to underserved areas and various sectors are reporting reductions in the rate being charged for liability cover.
While pricing and market participation remain commercial decisions for insurers, increased competition and the impact of wider insurance reform measures can support improved affordability and contribute to downward pressure on premiums. The Government will continue to monitor developments to ensure that the benefits of reform are reflected in lower costs and improved access to cover for policyholders.
150. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance if he is intending to make any changes to the Section 481 Film Tax credit in the upcoming budget in view of the recommendations of the Budgetary Oversight Committee report on Section 481, particularly in relation to addressing employment rights, employment security, and the use of buy-out contracts for actors, performers, writers and directors. [68636/26]
Amharc ar fhreagraOver the last number of budgets, the Government have enhanced tax incentives for film production and developed new measures for unscripted television production and the development of digital games. These measures complement the Government’s long-standing support to screen production and Irish creative industries creating quality employment opportunities and supporting the expression of Irish culture.
I am aware of the contents of the 2023 Budget Oversight Committee Report on Section 481. I understand that there are a number of recommendations contained within the report that cover various themes and policy areas, including the provision of quality employment by producers and qualifying companies.
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. It is also important to recognise that the laws underpinning employment rights apply regardless of whether a company applies for section 481 or not. The monitoring of compliance with employment rights legislation is primarily a matter for the Department of Enterprise, Tourism and Employment through the Workplace Relations Committee (WRC).
While not having a direct role in respect of employment rights policy, I will continue to support quality employment in the sector, and I am aware that significant progress has also been made in recent years in advancing the quality of employment through collective agreements.
With regard to remuneration of actors, performers, writers and directors, the Deputy will be aware that an independent facilitator was retained by Screen Ireland in 2023 to meet with key stakeholders and progress discussions on matters of copyright. As a result, stakeholders have agreed interim best-practice industry guidelines while pursuing a path towards a collective-bargaining agreement.
It is also worth noting, Ireland was one of the first countries in Europe to link its film tax credit to skills development, ensuring that sustainable growth across the screen industry provided structure and stability to Irish crew through these opportunities.
