Tommy Broughan (Dublin Bay North, Independent)
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19. To ask the Minister for Finance if consideration is being given to the introduction of a green tax and dividend approach to decarbonising society and the economy; and if he will make a statement on the matter. [38767/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions. Having said that, the Deputy will be aware that the Climate Action Plan 2019 provided a commitment to assess a Carbon Tax trajectory of at least €80 per tonne by 2030, having regard to considerations on the social and economic impacts. 

A carbon tax was introduced in Ireland on a phased basis beginning in 2009.  Initially it applied to transport fuels, and was extended to other non-solid fuels (such as kerosene, green diesel, liquefied petroleum gas and natural gas) in May 2010.  When introduced, the rate was €15 per tonne of CO2 emissions and this was increased to €20 per tonne in December 2011.  Carbon tax was extended to solid fuels at a reduced rate of €10 per tonne from May 2013 which increased to €20 per tonne in May 2014.  In 2018, the VAT exclusive yield from carbon tax was approximately €431 million. 

While hypothecation is not a feature of the Irish taxation system in general as it can constrain the flexibility of the Government in expenditure decisions, the Joint Oireachtas Committee on Climate Action recommended that hypothecation of carbon tax revenues be considered. To this end my Department conducted a public consultation on the options for use of revenues raised from increases in the carbon tax. Among the options presented were a “tax and dividend scheme”. There were 66 respondents to the consultation, representing businesses, private individuals as well as social, voluntary and community and “other” sectors.   

The most favoured options were ring-fencing additional carbon tax revenues for the purposes of enhancing the current Sustainable Energy Authority of Ireland (SEAI) grant scheme for household energy efficiency improvements and to fund sustainable transport infrastructure.  The option of returning the proceeds by way of dividend to citizens or households through the social welfare and/or tax system received a negative response overall, being one of the least supported and most opposed options.

In the context of Budget 2020 and future tax policy, I will consider all options relating to the carbon tax.  

Pearse Doherty (Donegal, Sinn Fein)
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20. To ask the Minister for Finance if the review of the special assignee relief programme has been completed and published; and if he will make a statement on the matter. [39081/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Special Assignee Relief Programme (SARP) is an income tax incentive aimed at reducing the cost to employers of assigning key individuals in their companies from abroad to take up temporary, short-term positions in the Irish based operations of the employer with a view to transferring essential skills to Irish based workers. For example, such individuals may be transferred to head up new divisions of the company or take charge of new product development.

In accordance with the Department of Finance Tax Expenditure Guidelines, SARP is currently the subject of an independent review which is being carried out by Indecon Economic Consultants. The review exercise affords an opportunity to look at all elements of the relief and it also includes consultation with stakeholders. 

The terms of reference of the review include:

- the continuing relevance of the programme;

- the performance of the programme in terms of meeting its objectives;

- the particular features of the programme;

- the annual cost and

- the overall impact of the programme.

The appropriateness of the present upper and the lower limit on the quantum of income that should benefit from the tax relief is also to be examined having regard to the objectives of the scheme and to the principles of tax equity. 

I understand that the report is currently being finalised and I expect that it will be submitted to my Department in the next few days.  It is my intention to publish the report in the context of the forthcoming Budget and Finance Bill.