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Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: I welcome the U-turn by the Government on this issue. Just a couple of weeks ago the Minister's predecessor was arguing black and blue that people had enough time regardless of the cost-of-living crisis, which was put forward as an argument by me and others in terms of the changes to BIK. The principle of how we apply taxes and try to change behaviour is one that I support. That is why...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: Does the Minister have any concerns about the method he has used to deal with the reduction? A sum of €10,000 will be deducted from the original market value of a car. That figure is not calculated for the purpose of BIK. For example, a category B car with 40,000 km will mean a multiplier of 15.75. The BIK will be €1,572 Euro and tax at 52% will be €890. That is the...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: In cash terms, the heaviest polluting cars will benefit more from this change than the lowest emission cars. Does the Minister accept that? That goes against the principle of what is being attempted. On the percentage of taxes paid it will be the opposite but if you have a sports utility vehicle, SUV, or a high polluting car your benefit through this change is over €1,000, whereas...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: Does the Minister propose any method of calculating the data so that come either the tax strategy papers or the run-up to the budget next year we would have an indication of whether we are talking about 500, 5,000 or 50,000 vehicles that fall into this category? Is there an easy way of doing that?

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: Section 1 deals with a number of agricultural sector reliefs that are being extended so I welcome this. I have a number of questions on the technical details on the extension of the stock relief and the young trained farmer relief. I also mention the registered farm partnership stock relief. Can the Minister clarify the changes that are being made in subsection 1(a)(i) on the definition of...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: Many would not be familiar with the outworkings of the ABERs. The definition of SME obviously changes to take account of the regulations. In practical terms, will the change to the definition have any impact on the scheme?

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: That is fine. There are two sections that deal with the publication thresholds, entailing a change from €60,000 to €10,000. Could the Minister clarify that the practical implication is that where a relief in excess of €10,000 has been granted – I believe farm safety equipment applies – it will be published. Previously the threshold was €60,000....

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: That is fine. I thank the Minister for the clarification.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: I move amendment No. 3: In page 5, to delete lines 19 to 24 and substitute the following: " 1 May 2023 €483.34 €483.34 €425.45 €425.45 €425.45 €0.00 €164.23 €111.14 €142.76 €79.17 €9.36 1 June 2023 ...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: Is carbon tax hypothecated in Irish tax law?

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: It is not in law.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: There is no legal impediment to reducing the level of mineral oil tax on home heating oil, which is colloquially called carbon tax. The €57 million by which we would be reducing the cost to individuals of heating their homes could be obtained from any other source of revenue. The argument put forward is that if this is done, it will take away from investment available for energy...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: I have been very clear on that. We should not put up the price of petrol and diesel and thereby make families poor. We need a just transition.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: Yes, I would. Sinn Féin's policy is very clear in this regard. If we look at the issue of price and whether continuing price rises will deter people from jumping into a car, we need only consider what has happened in the past year or year and a half, when the price of petrol and diesel went through the roof. At some points, a litre cost €2.20. That did not stop people from...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: I am referring to my amendment

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: They got no direct supports to heat their homes.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2023: Committee Stage (29 Mar 2023)

Pearse Doherty: I ask the Minister to quote me properly.

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