Emer Currie (Dublin West, Fine Gael)

I raise the deemed disposal rule for exchange traded funds, ETF. I welcome the reduction in the exit tax rate announced in the budget, but the rule itself remains the difficulty. Under the deemed disposal rule, investors are taxed every eight years on gains they have not realised. This creates an opportunity cost for savers. To pay the tax, investors may need to liquidate part of their ETF holdings or use cash that otherwise could have remained invested, meaning the long-term growth is reduced and the benefits of compounding are not fully realised. In both cases, I am told, it penalises prudent, long-term investments. Will the Taoiseach indicate whether the Government has any short- or long-term plans to address the rule?

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