Results 1,841-1,860 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 can equally make the point that any person looking at how the budget impacted on them will look at it in the round. The Deputy seeks an acknowledgement that in cash terms somebody on a higher income of €50,000 or €60,000 benefits more in tax than somebody on €20,000 or €30,000. Yes, that is correct. Proportionally, it is not correct. It represents the fact...

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

Michael McGrath: As I understand it, these amendments are grouped, so I will address them together. The Rural Independent Group has requested a report on the abolition of the USC for those earning less than €70,000 per annum and a report on abolishing the USC for all employees in the State. Deputy Doherty requested a report on increasing the exemption limit for the entry point to USC from...

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

Michael McGrath: As the Deputy acknowledged in his earlier remarks, in recent years we have adjusted the 2% USC band to accommodate the change in the minimum wage. That is the right thing to do to ensure, as the Deputy said, that those who benefit from the increase in the minimum wage get to keep as much of that benefit as possible. I certainly intend in the future, where possible, to continue with that...

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

Michael McGrath: In response to amendment No. 3, I note that the cycle to work scheme provides that employees can avail of the scheme once in a four-year period, as Deputy Nash said. This period was reduced from five years by the Financial Provisions (Covid-19) (No. 2) Act 2020. The scheme covers the cost of a bicycle, locks, chains and other safety equipment to deter bicycle theft, though I note the figure...

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

Michael McGrath: I thank both Deputies for the points they have made. My experience is that when it comes to the option of a child cycling to school, it is not the cost of the bike that is the deterrent but the safety of the route. That is why the Government and local authorities are investing a lot more money in safe cycling routes. Similarly, when it comes to cycling to college, it may be a factor for...

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

Michael McGrath: I will read the short note. Essentially, it arose from the PAYE modernisation review. The section provides for amendments to sections 990, 984B and 985G of the TCA 1997 to include a four-year time limit for pay-related employer assessments and refunds. A consequential amendment to section 531AOA of the TCA is also being made in respect of USC, to reflect the four-year time limit. There...

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. It will be a Revenue-led initiative. Revenue has been developing it in recent months and my understanding is that it will be ready shortly. In essence, it will be a public information campaign to help build awareness about entitlements to certain reliefs, credits and exemptions. As the Deputy will have seen in the reply to his parliamentary question, every year people...

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 Nash. As he said, the help-to-buy incentive was announced in budget 2017 as an income tax incentive measure designed to assist first-time buyers with the deposit required to purchase or self-build a new house or apartment to live in as their home. The relief is only available in respect of new builds, with a view to increasing the supply of new housing and stimulating demand....

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

Michael McGrath: My party and I have supported the help-to-buy scheme for a long number of years. It is a vital support to homebuyers. When we look at the number of people who have managed to purchase their first home with that support, it is clear that the scheme plays an important role. It is alongside a range of other measures that we believe are working. We can see the increase in supply across this...

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 have that figure to hand.

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 Chair and all of the Deputies for their contribution so far on the issue. For the record, I and my party campaigned in 2020 for the retention of the help-to-buy scheme. It was a commitment in our manifesto. There are new homes being built today which simply would not have been built if the help-to-buy scheme did not exist. I assume the logic of both Sinn Féin and the...

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

Michael McGrath: The help-to-buy scheme is already legislated to be in existence until the end of 2024. What I signalled on budget day, and what I am proposing to enact here, is that it would be extended. I also indicated on budget day that I would examine the scheme across next year to see what changes, if any, might need to be introduced to it. Any such changes would take effect for 2025, but I will...

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.