Leo Varadkar (Dublin West, Fine Gael)
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Question 132: To ask the Minister for Finance the cost to the Exchequer of the failure to close off the stamp duty loophole, whereby developers could avoid paying stamp duty by making licensing agreements with owners selling land, for the years 2004, 2005, 2006 and 2007; and if he will make a statement on the matter. [18649/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Section 110 of the Finance Act 2007 made provision for a charge to stamp duty where license agreements and other such arrangements are used when land is purchased for development without conveyance or transfer. The provision ensured that these arrangements will incur a Stamp Duty charge where a landowner receives a payment amounting to 25% or more of the market value or consideration concerned. Section 110 is subject to a commencement order on the basis that it would be prudent to consider the state of the housing and property market before the provision is put into place.

For this reason, an independent study of the potential effects that such a provision may have on the market was commissioned. The Report is available for download on my Department's website at http://www.finance.gov.ie/documents/publications/reports/2008/S110Report.pdf.

As these transactions, under current law, do not involve a liability to Stamp Duty, there is no requirement to present any documentation to the Revenue Commissioners for stamping and there is therefore no specific data on which to accurately estimate any revenue gains from commencing the provisions.

The Report also makes the point that there are no official data sources on the value of development land sales; therefore, it gives an indicative estimate of the total value of the development land market in 2006 at c. €7bn to €8bn. Based on a technical assumption of 40% of land transactions using these arrangements, the Report estimated a potential revenue gain in 2006 of c. €251m if the provisions had been in place at that time. However, this estimate is based on the historic levels of activity in 2006 and is not indicative of the revenue gain that would occur following commencement of the provisions at a later date. A more realistic figure for the revenue accruing from the provisions is in the order of €50m per annum.

Leo Varadkar (Dublin West, Fine Gael)
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Question 133: To ask the Minister for Finance the cost to the Exchequer of reducing the commercial stamp duty rate from 9% to 8%; and if he will make a statement on the matter. [18650/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that the cost of reducing the current 9% rate of stamp duty on commercial property to 8% is estimated at €133 million, based on Budget 2008 projections. As this cost is a function of the actual and estimated number of transactions, and the price levels at which these transactions take place, it is therefore sensitive to cyclical changes in the commercial property market.

Tommy Broughan (Dublin North East, Labour)
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Question 134: To ask the Minister for Finance his views on reviewing the level of excise duty on diesel for licensed and own account operators in the haulage industry; if he will conduct a general review of the level of VAT and excise duties on diesel; and if he will make a statement on the matter. [18651/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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While the increase in the price of fuel and in particular the disproportionate increase in the price of auto-diesel compared to petrol is not tax driven, the Government continues to monitor price developments. I understand that the current increase in the price of auto-diesel is evident throughout the EU and some explanations that have been put forward include:

shortage of diesel at European refineries; European diesel demand has far outgrown production,

stock levels of petrol in the US are higher than anticipated which has contributed to the disproportionate increase in the price of diesel, and

increased demand for aviation fuel has also had a limiting effect on diesel production.

Excise duty rates in Ireland for both auto-diesel and petrol are €368.05 and €442.68 per 1,000 litres of fuel respectively. These rates are around the EU average and are less than our main trading partners particularly our nearest neighbour, the UK. I would point out that the excise rates for both diesel and petrol have not been increased in the last four Budgets.

It should be noted that the VAT content of purchases of auto-diesel is a deductible credit for businesses in the Irish VAT system.

Leo Varadkar (Dublin West, Fine Gael)
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Question 135: To ask the Minister for Finance the number of homeowners who do not benefit fully from mortgage interest relief due to the fact that they do not earn enough to pay income tax; and if he will make a statement on the matter. [18652/08]

Leo Varadkar (Dublin West, Fine Gael)
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Question 136: To ask the Minister for Finance the cost of replacing mortgage interest tax relief with a tax credit; and if he will make a statement on the matter. [18653/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 135 and 136 together.

The position is that all homeowners who hold a qualifying loan with a qualifying lender may fully benefit from mortgage interest relief.

Tax relief at source in respect of mortgage interest was introduced with effect from 1 January 2002. Since that date a borrower is not required to be earning a taxable income to be eligible for mortgage interest relief.

It is not clear what the Deputy has in mind regarding the cost of replacing mortgage interest relief with a tax credit. The position is that, subject to limits, mortgage interest relief at the standard rate is granted on a qualifying loan used for the purchase, repair, development or improvement of a principal private residence. Tax relief at the standard rate is effectively operated in the same manner as a tax credit.

The increased first-time buyer's limits of €10,000 for a single person and €20,000 for a married couple, announced in Budget 2008, equate to tax relief of up to €2,000 for a single person and €4,000 for a married couple that can be offset against qualifying interest.