Seán Barrett (Dún Laoghaire, Fine Gael)
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152. To ask the Minister for Finance if he will consider introducing a tax credit at the standard rate for renters to help alleviate the pressure on persons who find themselves paying a large portion of their monthly salaries on rent; and if he will make a statement on the matter. [8302/17]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy may be aware, the previous tax relief in respect of rent paid, was abolished in Budget 2011, and it is no longer available to those that commenced renting for the first time from 8 December 2010. This followed a recommendation in the 2009 report by the Commission on Taxation that rent relief should be discontinued. The view of this independent commission was that, in the same manner in which mortgage interest relief increases the cost of housing, rent relief increases the cost of private rented accommodation. Accordingly, the result of reintroducing this relief would be a transfer of Exchequer funding directly to landlords, which would not have the intended effect of reducing the pressure on tenants.

In addition, a tax credit of this nature would be of little benefit to lower-income workers, the unemployed and students, who may not receive the benefit of the relief as they may not be paying sufficient levels of income tax. The actions that the Government propose to take in order to address concerns about the cost of rental accommodation are set out in the "Rebuilding Ireland: Action Plan for Housing and Homelessness". Finally, at the time of its abolition, the rental tax relief cost the Exchequer up to €97m per annum, and it is likely that this figure would be an even higher cost were a similar scheme to be introduced. Taking these factors, among others, into consideration, I currently have no plans to introduce a tax credit in the manner in which the Deputy describes.