Willie O'Dea (Limerick East, Fianna Fail)

The recommendation relates solely to tax relief for service charges. I understand what the Senators have said and their arguments for and against. I will communicate their comments to the Tánaiste. Relief for service charges is currently available in respect of charges paid by a householder in the previous year subject to a maximum claim of €400 per annum. Where an individual makes a claim in any year, the level of relief claimed is automatically allowed for all future years. The Revenue Commissioners have gone that far in giving continuity. The Revenue Commissioners provide a number of simplified ways for individuals to make their claim for this relief by text or on-line, or by phoning or writing to their local tax office.

The recommendation proposes that tax relief at source should generally be applied to service charges paid by individuals. While the principle of relief at source is very effective in ensuring that all qualifying individuals benefit from the relief, I am advised it would involve a cost on the Exchequer from one point of view, namely that individuals who are exempt from tax and who would not be currently be availing of the relief would in effect be getting a direct subsidy from the Exchequer. In order for such a scheme to operate successfully it would be necessary for the ten local authorities and in excess of 400 private operators to all participate fully. It could not be envisaged that a dual system of granting relief would apply.

Service providers use a wide variety of methods to levy the service charges, including direct payments, bin tags and service charges. There are considerable variations in how the level of service charges is determined. It would require amendment to some or all of those systems before the introduction of any such scheme of direct relief at source. To ensure the tax relief is highlighted to as many eligible payments as possible the local authorities have agreed to assist Revenue in publicising the relief. The Tánaiste is favourably disposed to the general notion of giving as much tax relief at source to those matters as possible. The Senators can rest assured that the Revenue will continue working to find a way.