Áine Brady (Kildare North, Fianna Fail)
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Question 65: To ask the Minister for Finance the changes in budget 2009 and the Finance Bill (No. 2) 2008 that have been designed to assist the small business sector; and if he will make a statement on the matter. [43238/08]

Áine Brady (Kildare North, Fianna Fail)
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Question 66: To ask the Minister for Finance the implications of budget 2009 and the Finance Bill (No. 2) 2008 in particular in relation to the research and development tax credit changes for multinational companies operating here or potential multinationals considering to locate here; and if he will make a statement on the matter. [43239/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 65 and 66 together.

In my Budget Speech I said that despite the need to raise revenues, this Government is committed to maintaining and enhancing pro-employment business tax relief. I announced in the Budget the introduction of a three-year exemption from corporation tax on trading profits and chargeable gains for new companies commencing to trade next year. New companies that benefit from tax exemption will see full relief where total corporation tax liability in any of the first three accounting periods does not exceed €40,000. There will be marginal relief where corporation tax liability falls between €40,000 and €60,000.

I also announced in the Budget that the Research and Development tax credit would increase from 20% to 25%. The Finance Bill includes very significant changes to the scheme which will increase its attractiveness to business, including small companies and those in the start-up phase but also large companies, both multinational and indigenous. These changes involve: An option to carry-back unused tax credits for set-off against the previous year's corporate tax liability, thus generating a tax repayment; A further option, where there is insufficient or no corporation tax liability in the previous year, to claim payment of the remaining unused credit which will be paid in instalments over a three year period; 2003 will be permanently set as the base year for calculating incremental R&D expenditure under the scheme. Over time, this will have the effect of turning the scheme into a volume-based scheme; Finally, the Bill provides that a tax credit will be available in respect of a proportion of the expenditure incurred on a new or refurbished building used in part for R&D activities. This change reflects the reality thatR&D takes place in manufacturing or production environments and not only in laboratory conditions. These combined changes make our R&D regime one of the most attractive in the world.

There are other measures announced in the Budget and included in the Finance Bill which aim to assist the business sector. These measures include an extension of the deadlines for the on-line submission by businesses of tax returns and payments. An extension of the scheme of accelerated capital allowances for energy-efficient equipment from three to seven classes of technology. Under the scheme companies can write-off 100% of the cost of eligible equipment in the year of purchase. A reduction in the top rate of Stamp Duty applicable to commercial property has been reduced from 9% to 6% in a further effort to support business and jobs.

Fergus O'Dowd (Louth, Fine Gael)
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Question 67: To ask the Minister for Finance his views on correspondence from a company (details supplied); and if he will make a statement on the matter. [43244/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy is aware, the fuel duty rebate was withdrawn with effect from 1 November 2008 following the ending of a special derogation under the EU Energy Tax Directive 2003. A similar situation affects all member States who had derogations under the Directive. The Department of Transport and other relevant Departments, in conjunction with my Department, examined and considered alternative options at length. In the end, it was not found feasible to introduce an alternative non-tax scheme on a cost-neutral basis and with EU rules.

However in general recognition of the pressures being experienced by public transport providers and road hauliers, it was decided not to increase excise on diesel fuel, for the fifth consecutive Budget. In addition, despite our present difficult budgetary conditions, I have been able to continue to provide very considerable resources to the Minister for Transport to support public bus services through out the country.

Paul Kehoe (Wexford, Fine Gael)
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Question 68: To ask the Minister for Finance the amount of revenue that would be generated by the imposition of an additional one cent excise duty on every packet of cigarettes and every pint of beer, stout and cider based on projected sales for 2009; and if he will make a statement on the matter. [43340/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that the estimated full year yield from an additional one cent increase in excise duty, or 1.215 cent VAT inclusive, in the above products is as follows: