Seán Kyne (Fine Gael) | Oireachtas source

I welcome the Minister of State. I welcome the extension of the agricultural tax relief, as outlined in the Finance Bill 2023, particularly the young trained farmers stock relief. It is particularly notable that Macra na Feirme members are walking from Athy in County Kildare to Dublin today and are scheduled to arrive later this evening.It is a 79 km walk in recognition of its 79 years in existence. I certainly welcome the impact of the Finance Bill 2023 on young farmers who represent the future and the lifeblood of our country and our agricultural sector. In that vein, I know there has been considerable interest in solar panels. I certainly welcome the reduction to zero in the VAT on the supply and installation of solar panels for private dwellings - agricultural buildings were dealt with previously. The zero-rate of VAT will apply to ancillary equipment supplied and installed with the solar panels. That change took place in association with the change to planning permission and will certainly benefit the introduction of this.

The temporary business energy support scheme has been a major initiative which did not see as significant an uptake as was anticipated by Department of Finance officials. I welcome the extension of the scheme until 31 May with flexibility to further extend it until 31 July. The threshold for qualification will be reduced from the 50% increase in electricity or gas costs to 30% and from 31 March the level of relief has increased from 40% to 50% of eligible costs which is also welcome.

The extension of the reduction in the mineral oil excise duty will expire. It is important to note that the wholesale prices are reducing and the cost at the pumps is reducing. I certainly hope this will not result in a noticeable increase in fuel costs because clearly when the illegal invasion of Ukraine started, this had an impact on wholesale oil prices which was very quickly seen at the pumps. We do not see the reduction taking place as quickly as one would like, notwithstanding that prices are at their lowest since 2021.

The extension of the 9% VAT rate for hospitality and tourism was a big initiative of the Fine Gael-led Government in 2011 in the budget for jobs that year to try to increase jobs in the tourism and hospitality sectors. We were in a different situation then with high levels of unemployment. It was a successful initiative. We have had various interactions in the meantime over the suspension and reintroduction of that 9% rate. I welcome the extension until 31 August. I certainly hope the benefits of that continue to be passed on to customers over the coming months.

As has been said here on numerous occasions over the past week, the buoyant economic figures and the buoyant tax receipts are there to be seen. While some of those maybe windfall and temporary, it is clear the finances are in good order. I hope the upcoming budget recognises that with a reduction in the tax burden on hard-pressed taxpayers whether that be a reduction in the USC or increasing the threshold at which people pay the higher rate of tax. That was brought to €40,000 on the last occasion. As I have said previously, if nothing was done with thresholds, everyone would eventually end up paying the higher rate. It is important they keep pace with growth in wages.

I certainly hope this can be looked at and that we can see a measurable increase in the threshold or a further reduction of USC which, as we know, was the temporary tax. It grates with people that it continues to be levied. I know that is for good reason and it brings in a lot of money, which is obviously important for our finances. I would welcome any measures to reduce the USC take or increase the threshold at which people start paying the higher rate of tax or other tax changes that can put money back in people's pockets. While the one-off measures are very welcome, we can reduce the overall burden for people.