Catherine Murphy
Question:242. Deputy Catherine Murphy asked the Minister for Finance the estimated cost in 2024 if the stamp duty on ATM-only cards and debit cards were scrapped. [42392/23]
View answerTax Code
Questions (242)
Written answers
The latest available Revenue Ready Reckoner, which is available on their website at "Revenue Ready Reckoner – Pre Budget 2024", indicates on page 21 that the full year cost of abolishing duty on cash cards (includes ATM cards, debit cards and combined ATM/debit cards) would be €8 million.
Tax Code
Questions (243)
Catherine Murphy
Question:243. Deputy Catherine Murphy asked the Minister for Finance the estimated cost of reducing the level of excise applied to home heating oil from €122.83 to €69 from 16 October 2023 to 1 March 2024. [42393/23]
View answerWritten answers
I am advised by Revenue that the estimated cost of reducing the level of excise applied to home heating oil from €122.83 to €69 from 16 October 2023 to 1 March 2024 is €29.8 million, comprising Mineral Oil Tax (MOT) of €26.3 million and VAT of €3.5 million.
Official Engagements
Questions (244)
Catherine Murphy
Question:244. Deputy Catherine Murphy asked the Minister for Finance if he plans to have a bilateral meeting with his Spanish counterpart. [42394/23]
View answerWritten answers
Ireland has a long-standing and excellent bilateral relationship with Spain, which is framed within the context of our common membership of the European Union.
I held a meeting with Minister Calvino en marge of the Economic and Finance Ministers (ECOFIN) meeting in Brussels on 14 July, central to which was an outline by Minister Calvino of Spain’s EU Presidency which they hold for the second half of this year. More generally, I am in regular and ongoing contact with my EU counterparts, meeting every month at the Eurogroup and ECOFIN meetings, most recently at the Informal Meeting of ECOFIN and Central Bank Governors in Santiago de Compostela, Spain, on 15 and 16 September.
At present, no plans are in place for a further bilateral meeting with Minister Calvino, but I look forward to engagement with her over the coming months to build on the long-standing cooperation between our countries and economies.
State Bodies
Questions (245)
Niamh Smyth
Question:245. Deputy Niamh Smyth asked the Minister for Finance to review correspondence regarding cash not being taken at a State agency (details supplied); and if he will make a statement on the matter. [42403/23]
View answerWritten answers
The issue of cash acceptance in financial transactions with both public and private service providers is an important issue that is currently being considered at domestic level by Government and, now, at European level led by the European Commission.
The Deputy will be aware that the Retail Banking Review, which was published in November 2022, contained a key recommendation for the Department to lead the development of a National Payments Strategy (NPS) to be completed in 2024.
Acceptance of cash is one of several areas of focus for the NPS. The Terms of Reference for the NPS set out that the Strategy should examine whether a legislative requirement should be put in place domestically in relation to the acceptance of payment methods by certain classes of firms, sectors or sub-sectors. The Terms also include a consideration of whether it should be Government policy that public bodies should accept, or facilitate the acceptance, of cash for the payment of goods, services, taxes, levies, fees or charges.
Work on the NPS by a team in my Department is underway and it is in the initial stages of consulting with key stakeholders to ensure a coordinated approach across Government Departments, State Agencies and other Public Bodies. In this regard, I have requested my Government Colleagues to instruct Public Bodies under their remit that where those public bodies in their current policies accept cash as a method of payment they should continue to do so until the NPS considers a public policy on the acceptance of cash by public bodies. A limited number of bodies do not take cash currently, these bodies include the National Drivers Licence Service, as referred to in your question. The NPS will examine the issue of cash acceptance by public bodies in the course of its work.
On 28 June, the European Commission published a proposal for a Regulation on Legal Tender, which looks at both access to, and acceptance of, cash.
This proposal is largely in line with emerging expectations on the acceptance of cash by aiming to ensure that everyone within the Euro Area has sufficient access to cash. It proposes that a Competent Authority in each Member State would be required to monitor the access to cash on an annual basis against a set of common indicators to be formulated by the European Commission, taking remedial measures where sufficient and effective access to cash is not ensured. The draft Regulation specifically draws attention to the need to monitor the level of 'ex ante unilateral exclusions of payments in cash' and it defines such exclusions as including a 'no cash' sign.
The recitals to the proposed Regulation state that a Member State should, if it concludes the level of unilateral exclusions of cash undermine the mandatory acceptance of euro banknotes and coin, take effective and proportionate measures including requiring specific sectors, such as healthcare, supermarkets, post offices and pharmacies, to accept cash.
In general terms, the European Commission’s proposals on access to cash are entirely compatible with the Heads of a Bill on the reasonable access to cash that is already being prepared by my Department in line with the recommendation of the Retail Banking Review. I understand that the Heads will be ready by the end of 2023.
As regards the acceptance of cash, the European Commission's draft Regulation proposes that cash acceptance should be mandatory across the Euro Area. However, it also provides flexibility around mandatory acceptance in circumstances where there is a prior agreement in place between both parties to a transaction regarding payment method, or if the refusal is made in good faith. In Ireland, the exceptions to mandatory acceptance are currently common practice across a number of sectors of the economy.
At domestic level, the work on the acceptance of cash in the NPS is complementary to the work of the European Commission.
Departmental Funding
Questions (246)
Mattie McGrath
Question:246. Deputy Mattie McGrath asked the Minister for Finance the funding provided by the State to an organisation (details supplied), per year, in tabular form; and if he will make a statement on the matter. [42404/23]
View answerWritten answers
The Department of Finance has not provided any funding to Planned Parenthood International.
Tax Code
Questions (247)
Richard Bruton
Question:247. Deputy Richard Bruton asked the Minister for Finance what the structure of motor tax and of VRT will be from the start of 2024; and whether it will embody any new measures to promote more sustainable purchases. [42423/23]
View answerWritten answers
VRT is an emissions-based tax and therefore the amount of VRT incurred will vary across different vehicle makes and models. The charge is determined by the Open Market Selling Price of the vehicle. While there were no changes to VRT as part of Budget 2023, recent reform to the rates structure has provided for increased VRT rates for high emission vehicles, while lower emission vehicles continue to incur low rates of VRT. This reflects the environmental rationale of the tax and underpins Government commitments to decarbonise road transport.
The motor tax system was also reformed in Budget 2021, in line with Government commitments to reduce emissions from road transport and in the context of transitioning to the new Worldwide Light Test Procedure (WTLP) emissions testing regime. In order to do this the existing New European Driving Cycle (NEDC) motor tax table was adjusted to reflect climate action priorities and to ensure a level playing field with the introduction of the new WTLP table.
Government policy with regard to vehicle taxation is to lower the emissions profile of the fleet. Recent reform has been focused on incentivising behavioural change towards low emission vehicles. The overall policy with regard to these taxes is kept under review as part of the Tax Strategy Group and Budgetary cycle.
Regarding future changes, as the Deputy will be aware, 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.
Tax Reliefs
Questions (248)
Richard Bruton
Question:248. Deputy Richard Bruton asked the Minister for Finance if he is aware of the request that the tax relief for filmmaking should include requirements of more generous copyright for creative workers on these films, so that the same rights would be available in Ireland as in other countries. [42428/23]
View answerWritten answers
I am aware of the issues raised in the Deputy’s question. In addition, the Oireachtas Committee on Budgetary Oversight’s recent report on the section 481 film tax credit makes a number of recommendations which cover many different themes and policy areas, including both copyright law and employment rights.
Copyright law falls within the remit of the Department of the Enterprise, Trade and Employment. Notwithstanding this, to gain an understanding of the issue, my officials have engaged with the stakeholders concerned, including representative bodies for actors and performers.
Copyright is relevant for many workers in the film sector, including authors, producers, broadcasters and performers. I have been informed that an independent facilitator has been retained by Screen Ireland to meet with key stakeholders to understand and discuss issues raised through the implementation of the Digital Single Market Directive (Copyright Directive). Stakeholder meetings have been held over the past number of months and further engagement is ongoing. I look forward to the outputs from this process.
It worth noting that copyright legislation applies regardless of whether it is referenced as part of the application process for section 481 or not. If there are issues with copyright law as it currently applies, as stated, this is a matter for the Department of Enterprise, Trade and Employment.
Tax Code
Questions (249)
Richard Bruton
Question:249. Deputy Richard Bruton asked the Minister for Finance the number of people who avail of the exemption from income taxes of room rental generating less than €14,000, and of childcare in the home of under €15,000; and if he will estimate the cost of each of these reliefs. [42432/23]
View answerWritten answers
I am advised by Revenue that the annual cost and number of claimants of the ‘Rent-a-Room Relief’ and ‘Childcare Services Relief’ is available in the Cost of Tax Expenditures Publication, which is available on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx.
The items in question are found in the table ‘Cost of other credits, allowances and reliefs’ in this publication.
For ease of reference the tables are provided below:
The following table sets out data on the number of taxpayer units availing of the Rent a Room scheme, together with the Exchequer cost of the relief for the years 2016 - 2021 (the latest year for which data are available).
|
Year |
Exchequer Cost €m |
Number of Taxpayer Units |
|
2021 |
26.8 |
10,730 |
|
2020 |
20.7 |
9,310 |
|
2019 |
22.2 |
9,810 |
|
2018 |
19.7 |
9,240 |
|
2017 |
12 |
8,160 |
|
2016 |
9.3 |
7,350 |
The following table sets out data on the number of taxpayer units availing of the Childcare Services Relief, together with the Exchequer cost of the relief for the years 2016 - 2021 (the latest year for which data are available).
|
Year |
Exchequer Cost €m |
Number of Taxpayer Units |
|
2021 |
1.2 |
570 |
|
2020 |
1.1 |
670 |
|
2019 |
1.7 |
690 |
|
2018 |
1.6 |
690 |
|
2017 |
1.6 |
700 |
|
2016 |
1.5 |
690 |
Budget 2024
Questions (250)
Ged Nash
Question:250. Deputy Ged Nash asked the Minister for Finance the full-year cost to the Exchequer of increasing the pension fund threshold from €2 million to €2.4 million; if he is considering any adjustments to the threshold for Budget 2024; and if he will make a statement on the matter. [42448/23]
View answerWritten answers
I understand that Deputy Nash is referring to the chargeable excess tax and Standard Fund Threshold (SFT) regime.
I am advised by Revenue that the SFT was introduced in Finance Act 2005, with the purpose of addressing excessive pension accrual, and it applies to all private and public sector pension arrangements. It is provided for in Chapter 2C of Part 30 of the Taxes Consolidation Act 1997 (TCA) which sets out the maximum tax-relieved pension fund at retirement. If the relevant threshold is exceeded, the excess over the threshold (the “chargeable excess”) is subject to an upfront, ring-fenced income tax charge (known as “chargeable excess tax”) at 40%.
The SFT was initially set at €5 million. The legislation allowed the Minister for Finance to amend the SFT in line with an “earnings adjustment factor”, which has happened on two occasions. The SFT was reduced to €2.3 million in December 2010 as part of a package of measures to deliver significant savings in the broad pension area following agreement reached with the EU/IMF.
The SFT was further reduced in Finance Act 2013 to €2 million, with effect from 1 January 2014, as part of reforms introduced to make supplementary pension provision more sustainable and equitable over the long term. The primary purpose of these changes was to further restrict the capacity of higher earners to fund or accrue large pensions through tax-subsidised sources.
Information on the numbers and values of individual pension funds or on individual accrued benefits are not generally required to be supplied to Revenue by the administrators of pension schemes and personal pension arrangements. There is, therefore, no underlying data available to Revenue on which to base reliable estimates of the cost that would arise specifically from the change to the SFT indicated in the question.
Finally, I would add that it is not the case that increases in the CPI or other measures of purchasing power should necessarily automatically result in an increase to the SFT. However, as with all taxes, the tax treatment of supplementary pensions, including the SFT is kept under ongoing review.
Tax Code
Questions (251, 252)
Thomas Pringle
Question:251. Deputy Thomas Pringle asked the Minister for Finance if the term “qualifying residence” referenced in the definition of “self-build qualifying residence” in section 477C of the Taxes Consolidation Act (TCA) 1997 (details supplied) refers to, and has the same meaning, as the previous definition of “qualifying residence” in section 447C; and if he will make a statement on the matter. [42455/23]
View answerThomas Pringle
Question:252. Deputy Thomas Pringle asked the Minister for Finance his views on a taxation matter (details supplied); and if he will make a statement on the matter. [42457/23]
View answerWritten answers
I propose to take Questions Nos. 251 and 252 together.
I am advised by Revenue that the Help to Buy (“HTB”) incentive, is a scheme to assist first-time purchasers with the deposit they require to buy or build a new house or apartment. The incentive gives 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 legislation governing the HTB scheme is set out in section 477C of the Taxes Consolidation Act 1997. Section 477C(1) provides definitions for “qualifying residence” and “self-build qualifying residence”. With regards to your specific question of whether the definition of “qualifying residence” applies to the definition of “self-build qualifying residence”, the answer is yes, as the conditions pertaining to a “qualifying residence” also apply to a “self-build qualifying residence”. Such conditions include that the new property is occupied as the sole or main residence of a first-time purchaser, the property must be a new building which was not, at any time, used or suitable for use as a dwelling and the purchase value of the property must not exceed €500,000. The definition of “self-build qualifying residence” contains the additional requirement that the property is built either directly or indirectly by the first-time purchaser on his or her own behalf.
In order to be eligible to make a HTB claim under section 477C(3), an applicant must either:
(i) enter into a contract with a qualifying contractor for the purchase of a new house or apartment, or
(ii) make the first draw down of the mortgage in the case of a self-build property.
Based on the limited information provided, it is not possible to give a definitive view as to whether or not the unfinished property would come within the definition of “self-build qualifying residence”.
If the Deputy wishes to provide further information, my officials could refer it to Revenue for reply. Alternatively, if the query is from a constituent, the individual concerned can contact Revenue directly, via MyEnquiries.
Question No. 252 answered with Question No. 251.
Question No. 253 answered with Question No. 237.
Banking Sector
Questions (254)
Ged Nash
Question:254. Deputy Ged Nash asked the Minister for Finance when the Central Bank plans to introduce a regulatory regime to govern the independent operators of ATMs, as recommended by the Retail Banking Review; if his Department has raised this issue with the Central Bank in 2023; if he is concerned at reports that the operators may consider introducing charges on transactions prior to any new regulatory framework; and if he will make a statement on the matter. [42495/23]
View answerWritten answers
As the Deputy is aware, the Retail Banking Review, published by my Department in November 2022, concluded that cash, despite a decline in its usage, remains an important element of the payments system and the broader economy and it is essential that cash remains readily available to customers through ATMs and other means across the country. It also concluded that there was still reasonable access to cash at the moment but noted that neither the Minister for Finance, nor the Central Bank, had any powers to ensure this.
Accordingly, the Review recommended that the Department of Finance should develop Access to Cash legislation and prepare heads of a bill in 2023 with the initial objective of developing criteria that would secure access to cash at about the levels prevailing in December 2022 but also provide for such criteria to be amended appropriately in future as and when cash usage declines further. The key objective is to ensure that evolution of the access to cash infrastructure does not move ahead of society's needs and expectations and that the future evolution is handled in a fair, transparent, and equitable manner.
The Review also called on Department officials to prepare heads of a bill in 2023 to require ATM operators to be authorised and supervised by the Central Bank and to provide the Central Bank with responsibility and powers to protect the resilience of the cash system, including the authorisation and supervision of cash-in-transit firms in respect of their cash handling activities and related financial services. It is my intention to fully honour this commitment and this work is now well underway by officials in my Department. It is intended that one piece of legislation will be drafted for all three recommendations on access to cash, including the aspects on IADs.
As part of the process of developing this important piece of legislation, my officials have consulted with the Central Bank of Ireland in relation to a number of relevant issues, as well as conducted a targeted consultation of stakeholders.
In relation to charges on transactions, I presume that the Deputy is referring to access fees charged by an ATM operator to use a specific ATM, which are separate to any bank charges incurred by a customer under the fee arrangements applying to their bank account. The Retail Banking Review discussed this issue and noted that it is important to ensure that the costs of accessing cash services - withdrawals and deposits - are not used to incentivise customers and SMEs to move away from cash. The Review Team said that it considers, as a matter of policy, that Irish consumers should not be charged access fees for withdrawing their own cash via a domestic ATM. This issue is also being considered in the Access to Cash legislation.
My officials are already working on Heads of Bill for this important piece of legislation and will bring the Heads to Government before the end of this year to seek approval to draft the Bill and to submit it for pre-legislative scrutiny to the Joint Oireachtas Committee on Finance, Public Expenditure and Reform and the Taoiseach.
Budget 2024
Questions (255)
Brendan Griffin
Question:255. Deputy Brendan Griffin asked the Minister for Finance to provide clarification on a matter (details supplied); and if he will make a statement on the matter. [42670/23]
View answerWritten answers
The Universal Social Charge (USC) was designed and incorporated into the Irish taxation system in 2011 to replace two other charges, namely 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 has played a vital role in meeting the many expenditure demands placed on the Exchequer. Receipts from the USC in 2022 amounted to €5 billion and the projected USC yield for 2023 is broadly similar at €5.2 billion. If USC were to be abolished or reduced, it would be necessary to raise this amount from other sources.
As the Deputy will be aware, the Programme for Government (PfG), “Our Shared Future”, contains a number of specific commitments relating to personal taxation. These include the commitment that, “from Budget 2022 onwards, in the event that incomes are again rising as the economy recovers, credits and bands will be index linked to earnings. This will be done to prevent an increase in the real burden of income tax, to prevent more low income workers being taken into the tax net because of no changes to the tax system and to ensure there is no increase in the number of people having to pay higher income tax and USC rates.” In addition, the PfG states that “the Earned Income Tax Credit will be equalised with the employee tax credit”. It also includes a commitment to increase the Home Carer Tax Credit to support stay-at-home parents and those with caring responsibilities.
Significant progress has been made in achieving these commitments. For example, over the last two Budgets the Government increased the Standard Rate Cut-Off Point for single persons by 13.3 per cent from €35,300 to €40,000, with commensurate increases for persons who are married/in civil partnerships. In addition, the main tax credits - personal tax credits, employee tax credit and earned income credit - were increased by around 7.6 per cent or €125 each from €1,650 to €1,775. It is also worth pointing out that the earned income tax credit was equalised with the employee tax credit in 2021. The Home Carer Tax Credit was also increased by €100 from €1,600 to €1,700 (a 6.3 per cent increase) in Budget 2023.
The last two Budgets have also seen the ceiling for the 2 per cent rate of USC increase by €2,233 from €20,687 to €22,920 in line with the increases in the National Minimum Wage (which, over that period, increased from €10.20 to €11.30 per hour). This ensured that a full time worker on the national minimum wage stayed outside the higher rates of USC.
Finally, in regards to any potential personal tax changes in Budget 2024, the Deputy will appreciate 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.