Michael Collins (Cork South-West, Independent Ireland Party)

The VAT reduction to 9% for hairdressers, cafés and restaurants is very welcome. I thank the Government for doing that and delivering for these people who were practically on their knees. I cannot understand that some parties in here are crying that the Government should not have done that. They obviously do not talk to the restaurant or café owners who are in a desperate situation. Cinemas also want to be included in the recent VAT reduction. I have been in contact with the Minister about that and I ask him to look at it at some stage. It will not happen this time, but maybe in the next budget. While the 9% reduction supports food, catering and hairdresser businesses, cinemas face many of the same pressures, such as rising energy and wage costs, incomplete recovery from the pandemic and increased competition from global streaming platforms for many independent and rural cinemas. These challenges are making selling the operations increasingly difficult. My local cinema in Bantry serves west Cork and is a key local employer and community hub, driving footfall for nearby cafés, restaurants and shops. The fiscal cost of extending the 9% VAT rate to cinemas is modest, at around €4 million per year. Yet, it would make a major difference in protecting jobs, keeping venues opens and sustaining cultural access across the country. Cinemas already lost out on the second payment of the increased cost of business grant and the subsequent power up grant. I would be grateful if the Minister could look at this. As I said, I contacted him and while I know it is late in the game, I hope he will be able to do something for some of these struggling cinemas, especially the rural ones.

On the flat-rate scheme for farmers, this VAT change is unfair. It hits small farmers hardest. From 1 January 2026, the flat-rate top-up drops from 5.1% to 4.5%. That is €600 less per €100,000 in sales. This is money that farmers rely on to cover the VAT they cannot reclaim for small farms. That is not just a number; it is feed, fencing, diesel and vet bills. It is a cut to farmers' bottom line, and it does not stop there. The new rules could force more small, mixed-income farms into full VAT registration, adding paperwork, stress and costs. If a farmer earns from activities such as contracting or a farm shop, that income now counts towards the VAT threshold. That is a bureaucratic trap for small, diversified farms trying to stay afloat.

I also raise an issue that is affecting constituents of mine who are furious at the way they have been treated. They receive both a widow's pension and, as PAYE taxpayers, a Government pension. They receive their annual tax credit certificate and pay their taxes accordingly. However, each year, due to the Christmas double payment of the widow's pension, which is a long-standing practice, they become liable for an additional tax bill of €100 to €200. They rightly question why, under the PAYE system, they should be hit with a tax bill after the fact. This payment is predictable and reoccurring. Why is it not factored into their tax credits from the outset? One individual worked in a government job for 36 years and recalls that such small tax liabilities were not pursued. Now, Revenue intends to recover €25 annually. This is not about the money; it is, she believes, about the principle. This practice contradicts the spirit of the PAYE system and possibly the Constitution. I urge the Minister to review this matter and ensure fairness and transparency for pensioners under the PAYE system. The big issue here is that these are hard-working people. I spoke to a gentleman the other day who has a child. He said he does not get a chance to see his child. That hard-working PAYE taxpayer was hit hard. He got little or nothing from the budget and may even have come out of it worse off. He works almost seven days per week to make money. He said this is very unfair and he is suffering after the budget.

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