Shay Brennan (Dublin Rathdown, Fianna Fail)

In light of the urgent issues in housing supply, IBEC recently proposed that the Government address apartment construction viability directly by reducing VAT on new-build apartments by 5% and discontinuing development levies on such projects. Its analysis suggests these actions would reduce direct State-imposed costs at a cost of about €86 million, which is less than the shortfall between VAT receipts and the departmental profile. Given the number of apartment completions has reportedly fallen considerably this year to date and IBEC is now arguing for this intervention as consistent with the social imperative for increased housing supply and the VAT directive requirements, is such a targeted VAT reduction or the removal of development levies under consideration by the Government as part of budget deliberations? Does the Minister believe there are alternative tax measures that would better incentivise the construction of much-needed new apartments?

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