Results 26,061-26,080 of 27,945 for speaker:Michael McGrath

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I am proposing to extend the scheme because it is helping to increase supply. The fact is that in 2022 supply increased by about 45% and it will increase further in 2023. We need to go beyond that, and I believe we will. I believe there are schemes starting today and homes being sold today that would not be built or sold in the absence of the help-to-buy scheme. Fundamentally, it is there...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: This scheme is helping homeownership. The vast majority of people availing of it need the support that is available.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I do not accept that, in the majority of cases where people avail of the help-to-buy scheme, that they would otherwise purchase the home, be able to fit out that home and be able to service the mortgage without the support of the scheme. I do not believe that is the case. For the majority of people availing of this support, it is essential for them in the context of being able to purchase a...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: This section extends the €10,000 deduction for benefit-in-kind purposes applied to the original market value of a car or van in categories A to D as well as the amendment to the lower limit of the highest mileage band for a further year to the end of December 2024. These measures were originally introduced as temporary measures in the Finance Act 2023 earlier this year and they also...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: There is no upper limit in the case of non-electric vehicles. This is the emissions-based system where we are providing for the reduction. It is based on categories A to D. There is no limit in this sense.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: That is correct. The benefit-in-kind will apply on the value over €45,000. When we come to the VRT issue there is a cap but with regard to benefit-in-kind it applies to the excess and it is reduced by €45,000.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I thank Deputy Doherty. What he is suggesting is that the open market value reduction would not apply to vehicles above a certain value in the case of electric vehicles.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: We can take this away and consider it. I understand the point that Deputy Doherty is making.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: The Deputy’s request for a report to be included in the summer economic statement setting out the estimated cost to the Exchequer of adjusting income tax rate bands, tax credits and allowances and social welfare benefits and allowances to reflect any changes in the CSO’s all-items consumer price index numbers is a broad proposal and extends beyond my direct remit as Minister for...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: This section makes a number of amendments to the rent tax credit, which was introduced in Finance Act 2022. This tax credit is for those who pay rent on their principal private residence, or another property they use to facilitate their work or study obligations. The credit is being increased for the tax years 2024 and 2025 from €500 to €750 for a single person or from...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: The reason is that the purpose of the credit is to provide an affordability support for renters situated in the State. That issue was considered when the tax credit was introduced a year ago. I decided not to revisit that, having considered the issue. The existing basis means that a credit will not be available in respect of a payment made for a residential property located in Northern...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I understand that argument, but the basis of the relief changes fundamentally if we bring into its scope properties outside the State. It would not be possible to limit that to just Northern Ireland or Great Britain. I think you would have to extend it almost certainly throughout the EEA. It would change the nature and scope of the relief. That is not what it was intended for. The policy...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: That is the provision on student digs and the rent-a-room scheme. We are providing the relief to parents for 2022 and 2023, and prospectively after that. It is a policy change.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: The question of a proposed rent freeze raised by a number of Deputies is a much broader policy issue that we can certainly go into. I accept it is relevant to this debate. If we were to impose a complete rent freeze for a period of time, it would further reduce supply in the rental sector. We would see further rental stock being removed from the sector. While the intention may be to help...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I do not need to. It is part of the Bill and the section speaks for itself.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I thank the Deputy. As I announced in my budget day speech, my Department will shortly be launching a public consultation which will form part of an in-depth review of share based remuneration in Ireland and part of this review will be the consideration of all the recommendations made by the Commission on Taxation and Welfare regarding share based remuneration. We are, of course, very much...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I move amendment No. 6: In page 18, between lines 14 and 15, to insert the following: “ ‘local property tax number’ means the unique identification number assigned to a residential property by the Revenue Commissioners under section 27 of the Finance (Local Property Tax) Act 2012;”. Section 13 of the Bill provides for the temporary one-year mortgage...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I move amendment No. 10: In page 22, line 16, after “Eircode” to insert “and local property tax number”.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I move amendment No. 11: In page 22, to delete lines 26 and 27 and substitute the following: “(ii) the address (including the Eircode and local property tax number) of the qualifying property in respect of which a claim under this section is made,”.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (No. 2) Bill 2023: Committee Stage (7 Nov 2023)

Michael McGrath: I will speak about the section first and can respond directly to a number of the points. This section inserts a new section 473(c) into the Taxes Consolidation Act 1997 to provide for mortgage interest tax relief, which I announced on budget day. As we are all aware, on 14 September the ECB increased its main lending rate by 0.25%. This was the tenth increase in official rates since summer...