Ruairi Quinn (Dublin South East, Labour)
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Question 134: To ask the Minister for Finance further to Parliamentary Question No. 143 of 22 June 2010, if a provider of the 38 week early childhood care and education scheme is liable for rates if their premises are used for other educational purposes during the remaining 14 weeks of the calendar year; if a provider of the 38 week ECCE scheme is liable for rates if their premises are used for non-educational purposes during the remaining fourteen weeks of the calendar year; in cases where rates will be charged if they will be calculated on a pro-rata basis; and if he will make a statement on the matter. [28202/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Valuation Act, 2001 which came into effect on 2nd May, 2002, provides that all buildings used or developed for any purpose including constructions affixed thereto are rateable unless expressly exempted under Schedule 4 of the Act. Such exempt buildings would principally include those used for public worship, education and health-care provided on a not-for-profit basis, and charitable purposes.

The Act maintains the long-held position that all commercial properties, including childcare facilities provided on a private fee-paying basis are liable for rates. Such rateable premises would ordinarily include playschools, pre-schools, crèches and Montessori schools.

Where a premises is used exclusively, under the ECCE funded services scheme, to provide sessional places for 38 weeks of the year, the premises is exempt from rates. If the premises is used outside of the 38 week period for other educational uses, where the services are:

(a) available to the general public; and

(b) are not for private profit; or

(c) the expenses are defrayed wholly or mainly out of moneys provided from the Exchequer the premises will not be liable for rates.

Where a premises which enjoys exemption from rates by virtue of its exclusive use under the ECCE funded services schemes, which relates to providers of sessional places for 38 weeks of the year, is used by the occupier for commercial purposes outside the 38 week period, the entire premises will be deemed liable for rates.

Exemption can only be granted where the premises are used exclusively for educational purposes. Therefore, where the occupier alternates the use of the premises between rateable and non-rateable purposes during the rating year, under valuation legislation, that premises is deemed to be rateable for the entire year.

I should point out that the Commissioner of Valuation is independent in the exercise of his duties under the Valuation act, 2001 and that as Minister for Finance, I have no function in decisions in this regard.

Seán Sherlock (Cork East, Labour)
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Question 135: To ask the Minister for Finance when a refund of vehicle registration tax will issue to a person (details supplied) in County Kerry; and if he will make a statement on the matter. [28219/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners, that a repayment for the named person in the amount of €2751.18 was approved on 25 June 2010 and will issue shortly.

Thomas Byrne (Meath East, Fianna Fail)
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Question 136: To ask the Minister for Finance the impact on tax revenues of an increase in the capital gains tax rate to 28% and if this would affect our competitive taxation position; and if he will make a statement on the matter. [28314/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that the estimated full year gain from increasing the rate of Capital Gains Tax (CGT) from 25% to 28% is €48 million. This estimate assumes no behavioural changes on the part of taxpayers.

CGT is very dependent on individual behaviour and a change in rate may not produce a corresponding increase or decrease in tax yield. In current economic conditions any estimate of additional yield must be treated with caution. The realisation of any estimated yield from an increase in taxation on assets relating to property is subject to movements in the value of such assets, which are currently occurring in the economy. In addition, increasing the rate could, in theory, lead to a reduction in yield from the tax.

Tax is one factor in our competitiveness as an economy. While the rate of tax is a consideration, the most important concern in making an investment is the ultimate return. An increase in CGT might deter individuals from disposing of assets. However, a rate of 28% would be relatively low in historic terms.

The Deputy may be aware that the recent UK emergency budget increased the rate of CGT for UK higher rate income tax payers from 18% to 28%.