Gerald Nash (Louth, Labour)
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268. To ask the Minister for Finance the cost to Exchequer of removing stamp duty on credit cards; his views on removing stamp duty in view of safety concerns regarding the use of cash as a result of Covid-19; and if he will make a statement on the matter. [23732/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that based on 2020 tax forecasts, the estimated cost of removing Stamp Duty on credit cards would be in the region of €38 million. This does not include the cost of removing Stamp Duty on other payment cards, which would increase this cost by a further €17 million.

The €30 stamp duty on credit cards is generally collected by the card issuing financial institutions on 1 April each year for the preceding year, i.e. one year in arrears. The tax year for this stamp duty normally begins on 2 April each year.

As part of a package of measures I introduced in response to the early phase of the Covid 19 pandemic, I determined that for 2020, the stamp duty on credit cards, which is normally charged to accounts on 1 April each year, would not be collected until 1 July. It is however anticipated that the collection dates will revert to normal in 2021. The stamp duty collected on 1 July 2020 was in respect of the period 2 April 2019 to 1 April 2020. I did this to help mitigate the sudden and significant reduction in income that was being experienced by many at the time.

I am not aware of any evidence that the €30 annual stamp duty acts as a significant disincentive to the use or issuance of credit cards, particularly as it is not usage based, but is rather a flat charge that is levied each year, irrespective of whether a credit card is used or not in the 12 month period. I have no plans at this time to remove or amend that stamp duty.

Gerald Nash (Louth, Labour)
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269. To ask the Minister for Finance the anticipated savings to the Exchequer in 2021, in tabular form, from the ending the employment and investment incentive, the key employee engagement programme, the special assignee relief programme and the foreign earnings deduction; and if he will make a statement on the matter. [23733/20]

Gerald Nash (Louth, Labour)
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270. To ask the Minister for Finance the anticipated savings to the Exchequer in 2021 from the ending rent-a-room relief; and if he will make a statement on the matter. [23734/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 269 and 270 together.

The latest costs available for the Employment & Investment Incentive (EII), the Special Assignee Relief Programme (SARP), Foreign Earnings Deduction (FED) and Rent-A-Room Relief can be found in the Cost of Tax Expenditures report which is published on the Revenue website at link: .

A summary table can also be found below.

These costs can be assumed to be broadly indicative of the savings to the Exchequer if the reliefs were ended for a given year. However, this does not take account of changes in taxpayer behaviour or the secondary economic benefit provided by the reliefs.

Regarding the Key Employee Engagement Scheme (KEEP), I am advised by Revenue that 10 companies granted qualifying share options to 87 key employees during 2018 (the first year of the scheme). Generally, a key employee must hold the option for 12 months prior to exercise and, as such, 2019 was the earliest date that individuals could exercise their options to acquire shares in the qualifying companies. Returns for 2019 will not be filed with Revenue until later in 2020 so no information is available at this time. The Deputy may also wish to note that KEEP options may be exercised for up to 10 years from the date of grant and therefore it is not certain when the first exercises will occur.

Gerald Nash (Louth, Labour)
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271. To ask the Minister for Finance the cost of fossil fuel subsidies per year since 2016; the anticipated savings to the Exchequer in 2021 from eliminating damaging fossil fuel subsides; and if he will make a statement on the matter. [23735/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that, based on the methodology it used, the estimated cost of fossil fuel subsidies for the years 2016 to 2019 is shown in the table below. The savings to the Exchequer in 2021 from eliminating these subsidies is estimated to be in the region of €1.5 billion, but this does not factor in any subsequent change in consumption due to the increased Excise rates that would arise.

I am further advised by Revenue that consumption data required for it to estimate the cost of fossil fuel subsidies on aviation fuel is not readily available (there is no excise charged on aviation fuel used in cross border travel). The CSO published a research paper in 2019 on fossil fuel and similar subsidies in the years 2012 to 2016. Based on the methodology it used, the CSO estimated that the fossil fuel subsidy on aviation fuel amounted to €494.4 million in 2016.

In addition, fuel used for commercial marine purposes is also included in CSO calculations of fossil fuel subsidies but not included in Revenue estimates as these fuels are, like aviation fuel, exempt from excise.

Gerald Nash (Louth, Labour)
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272. To ask the Minister for Finance the revenue accrued or spent from reversing the current applicable tax rate for benefit-in-kind, BIK, for company cars in order that an increase in business kilometres driven is matched by increased taxation, that is, 0 km to 24,000 km at 6% and 24,000 km to 32,000 km at 12% and so on in 2021; the way in which this compares with the existing system in tabular form; and if he will make a statement on the matter. [23736/20]

Gerald Nash (Louth, Labour)
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275. To ask the Minister for Finance the estimated saving to the Exchequer in 2021 from reducing the cap on BIK relief for electric cars from €50,000 to €35,000; and if he will make a statement on the matter. [23739/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 272 and 275 together.

I am advised by Revenue that while some employee-level taxable benefits are recorded separately in employer tax returns, the information required to estimate the Deputy’s proposals are not available.

For the Deputy's information, a revised method for calculating vehicle BIK, based on the CO2 emissions of the vehicle, was enacted in the 2019 Finance Act and will commence with effect from 2023.

Gerald Nash (Louth, Labour)
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273. To ask the Minister for Finance the estimated savings to the Exchequer from ending relief to conventional hybrids in 2021; and if he will make a statement on the matter. [23737/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the estimated savings to the Exchequer from ending the current Vehicle Registration Tax (VRT) relief on conventional hybrid electric and plug-in hybrid electric vehicles in 2021 is estimated to be in the region of €13 million. This estimate is based on activity to date in 2020 and as such is subject to a higher degree of uncertainty than most years, with the volume of car registrations in 2020 negatively impacted by COVID-19.

Gerald Nash (Louth, Labour)
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274. To ask the Minister for Finance the estimated impact on the Exchequer in 2021 from the introduction of the worldwide harmonised light vehicles test procedure, WLTP, as cited in 2019; the additional revenue accrued or expended as a result of the change; and if he will make a statement on the matter. [23738/20]

Gerald Nash (Louth, Labour)
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276. To ask the Minister for Finance the estimated cost or saving to the Exchequer in 2021 from applying alternative tax regime for VRT that would see the number of VRT bands increase from 11 to 14 as set out by the Tax Strategy Group 2020; if he will provide a comparison with the existing VRT system in tabular form; and if he will make a statement on the matter. [23740/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 274 and 276 together.

The emissions basis for calculating VRT will transition to WLTP in 2021 and this will require changes to VRT legislation. 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.