Seán Kyne (Fine Gael) | Oireachtas source

I welcome the Minister of State to the Chamber and the arrival of the Finance Bill 2021 before us. It has to be enacted before Christmas to implement all the very positive changes contained in the budget announced a couple of months ago. I particularly welcome the changes ensuring that the increases in the minimum wage will not be gobbled up by the universal social charge, USC. This is the eighth such increase made by a Fine Gael-led or Fine Gael coalition government. The latest increase of 30 cent brings the minimum wage to €10.50 per hour.

I also welcome the tax relief for remote workers. This will be most positive for remote working. Because of the pandemic we have seen a new impetus to remote working. The option to work from home will be legislated for in the coming period, as the Tánaiste said earlier.

I welcome the income tax exemption for the pandemic placement grant for student nurses. I also welcome the extension of the help-to-buy scheme which has been most positive and popular when it comes to getting people onto the property ladder. It is to provide up to €30,000 or 10% of the house price bill up to 31 December 2022.I am sure that scheme will be kept under review for possible future extensions, as required. On the changes to tax bands, sometimes people are critical of such measures and argue that we have not put all our focus on increasing the spending in the Departments. If you do not touch tax bands, eventually everyone will end up paying a higher rate of tax. The tax bands have to be increased to allow for the increases in inflation and to ensure we raise the cut-off point on a phased basis. It is a specific policy that Fine Gael has promoted. I welcome that the personal tax credit has been increased by €50.

Other positive measures that have been introduced include the changes under section 7 of the Finance Bill, which will make it easier and less expensive for employers and businesses to provide the flu vaccine and other health checks to workers by formally exempting the cost of the flu vaccine and other health and well-being benefits from benefit-in-kind taxes. The measure dates back to the start of this year and is a positive in terms of business supports for workers.

I also welcome the €5,000 VRT relief for electric vehicles, which is to be extended to the end of 2023. I am sure that is something that will be kept under review as we move towards phasing out petrol and diesel by the end of this decade, unless that it is extended.

Section 56, which extends stamp duty relief to young trained farmers, is a positive measure. I am aware that it is a measure that is enacted every year, but it still has to go through the formal process. It has to be supported and voted through and there has to be a commitment by the Government for that to happen. I hope that future governments understand the importance of those reliefs and continue to apply them. According to the Bill, the relief will be extended to 31 December.

The bank levy is being extended for a further year to recoup some of the costs that the banks have received from the State and to ensure that financial institutions will contribute to the recovery in recognition of taxpayer assistance going back many years.

The zoned land tax is a measure that is intended to try to encourage movement in relation to the market. It is not about collecting revenue; it is about acting a stick to ensure that we get zoned land up and running and available, planning permission is granted and, more importantly, houses and apartments are built on that land. That is important. We must look at how we can force those who may be hoarding zoned land to build on it after a period of time. That is something that is going to be hugely important. We are familiar with the situation where people see lands that may be serviced or whatever else not being developed and yet we are crying out for houses and there is an absolute need for houses. It is absolutely vital that this measure goes ahead as an incentive and encouragement to free up that land. I welcome the changes I have mentioned and the many other positive changes that are being enacted in the Finance Bill this year. I look forward to its passage over the coming weeks.