Gerald Nash (Louth, Labour)
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333. To ask the Minister for Finance the estimated additional yield to the Exchequer from applying a higher rate of LPT of 0.25% or 0.2875% to properties valued over €750,001, from increasing the higher rate of LPT to 0.3% on the balance of properties valued over €1.05 million and 0.4% on the balance of properties valued over €1.75 million in tabular form; and if he will make a statement on the matter. [39885/21]

Gerald Nash (Louth, Labour)
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334. To ask the Minister for Finance the estimated additional yield to the Exchequer from applying a higher rate of LPT of 0.25% or 0.2875% to properties valued over €750,001; and if he will make a statement on the matter. [39886/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 333 and 334 together.

The valuation process for Local Property Tax (LPT) will require liable persons to self-assess the value of their residential properties as at 1 November 2021 in respect of the new ‘Valuation Period’ (2022 to 2025) and submit this value to Revenue.

It is important to note that Revenue does not value properties but accepts liable persons’ self-assessed valuations, subject to the usual compliance checks that may subsequently be carried out in relation to any self-assessed tax. Revenue is preparing extensive guidance that will be made available to property owners in advance of the issuing of tax-returns to assist them in self-assessing the value of their residential properties.

I am advised that Revenue will not be in a position to analyse the data and estimate the potential yield from differing LPT rate options until after the statutory tax-returns are filed and processed. While an overall estimated yield from the proposed changes to LPT has been prepared (projected to be €560m in 2022, before any adjustments by Local Authorities), until actual valuations are available from tax-returns it will not be possible to provide accurate or robust estimates of the impacts of varying rates across different valuation bands.

Gerald Nash (Louth, Labour)
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335. To ask the Minister for Finance the estimated individual savings per relief and total savings to the Exchequer from applying only the standard rate of tax to all discretionary tax expenditures in tabular form; and if he will make a statement on the matter. [39887/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the estimated yields from standard rating discretionary tax reliefs (currently at the marginal rate) are set out in the following table. The estimates are based on data from 2018 tax returns, which is the latest year currently available. The estimates do not take account any possible behavioural change on the part of taxpayers as a consequence of such a change.

Gerald Nash (Louth, Labour)
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336. To ask the Minister for Finance the estimated savings to the Exchequer by abolishing the current tax-free lump sum that can be withdrawn from a pension pot upon retirement and by reducing the current tax-free lump sum that can be withdrawn from a pension pot upon retirement from €200,000 to €100,000 or €50,000 respectively in tabular form; and if he will make a statement on the matter. [39890/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that there is no requirement to include data in tax returns in relation to tax free lump sums of less than €200,000 (the current life-time limit on tax-free retirement lump sums). Therefore, Revenue is not in a position to estimate the savings that might accrue to the Exchequer from the changes outlined by the Deputy.

Gerald Nash (Louth, Labour)
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337. To ask the Minister for Finance the estimated yield to the Exchequer by reducing the standard fund threshold from €2 million to €1 million; and if he will make a statement on the matter. [39891/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Standard Fund Threshold (SFT) is the maximum allowable pension fund on retirement for tax purposes, which was introduced in Finance Act 2006 to prevent over-funding of pensions through tax-relieved arrangements. The threshold was initially set at €5 million. It was subsequently reduced to €2.3 million with effect from 7 December 2010 and further reduced to €2 million with effect from 1 January 2014.

Information on the numbers and values of individual pension funds or on individual accrued benefits are not generally required to be supplied to Revenue by the administrators of pension schemes and personal pension arrangements. There is, therefore, no underlying data available to Revenue on which to base reliable estimates of the savings that would arise specifically from the change to the SFT indicated in the question.

Gerald Nash (Louth, Labour)
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343. To ask the Minister for Finance the estimated yield from reducing the scale of agriculture and business CGT relief, respectively, from 90% to 50% of the taxable value of the relevant assets and capping the relief at €3 million. [39897/21]

Gerald Nash (Louth, Labour)
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346. To ask the Minister for Finance the yield to the Exchequer from CGT for the previous three years; the estimated yield to the Exchequer from reducing the CAT class A threshold to €250,000, the class B threshold to €25,000, and reducing the class C threshold to €13,000 at a rate of 33%, 36% and 40%, respectively, in tabular form; and if he will make a statement on the matter. [39900/21]

Gerald Nash (Louth, Labour)
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373. To ask the Minister for Finance the estimated yield gained from an increase in the initial once-off 6% charge to 20% with respect to the discretionary trust tax; and if he will make a statement on the matter. [39938/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 343, 346 and 373 together.

In relation to Question No. 346, it is assumed the Deputy is referring to Capital Acquisitions Tax (CAT) rather than Capital Gains Tax (CGT).

The CAT receipts by year are published on the Revenue website at link: www.revenue.ie/en/corporate/information-about-revenue/statistics/receipts/receipts-taxhead.aspx. A breakdown of CAT receipts, including the yield from Discretionary Trust Tax is published at www.revenue.ie/en/corporate/documents/statistics/receipts/cat-receipts.pdf.

The Revenue Ready Reckoner, which is available at link: www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf, shows on pages 15 to 17, the estimated yield from changes to CAT reliefs, thresholds and rates. The proposed increases can be estimated on a pro rata basis from the information in the published table.

The yield from Discretionary Trust Tax at the current rate is shown in the publication referenced above. With an assumption of no behavioural change, an estimated increase in the yield pro-rata to the increase in the rate from 6% to 20% could be calculated. However, this would be a sizeable increase in rate and the assumption of no change in behaviour is unlikely to be realistic. Therefore, there is no basis to provide an accurate estimate of this proposed change.

Regarding Question No. 343, the yield from capping Business and Agricultural Relief at €3 million is tentatively estimated at €45 million for Business Relief and €1 million for Agricultural Relief.

Gerald Nash (Louth, Labour)
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344. To ask the Minister for Finance the estimated saving to the Exchequer that would accrue from abolishing the help to buy scheme; and if he will make a statement on the matter. [39898/21]

Pearse Doherty (Donegal, Sinn Fein)
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450. To ask the Minister for Finance the estimated revenue that would be generated in 2022 by removing the help to buy scheme. [41359/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 344 and 450 together.

The Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with a deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act (TCA) 1997 outlines the definitions and conditions that apply to the HTB scheme.

Bearing in mind that HTB is a demand-led scheme which is subject to a broad range of variables, including housing completion rates and prices, it is not possible to provide a reliable estimate of the savings that would arise from abolition of the scheme.

According to Revenue data, as of end June 2021, since the inception of the scheme the estimated total value of approved HTB claims to date is in the order of €453 million.

The table below summarises the value of approved HTB claims for each year since the inception of the scheme until end-June 2021.

Gerald Nash (Louth, Labour)
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345. To ask the Minister for Finance the estimated yield from removing the PAYE and earned income tax credits, which reduce final income tax liabilities, from taxpayers with incomes above €100,000 per year; and if he will make a statement on the matter. [39899/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the removal of the Employee Tax Credit and Earned Income Tax Credit for individuals with an income above €100,000, in the manner outlined by the Deputy, would yield an estimated €152m and €186m on a first and full year basis, respectively.

These estimates are based on tax returns for 2018 (the latest available year) and, in analysing the gross incomes of taxpayer units at individual level, a range of assumptions were necessarily made in relation to the distribution of credits (in such units). As such, were such a change implemented, it may lead to outcomes which vary from the above estimates.

I would also note that the removal of tax credits in a manner as set out by the Deputy could have broader implications, such as resulting in disincentives to work. For example, the removal of the tax credit for a taxpayer on an income of €101,000 would result in a lower after tax pay for that taxpayer compared to a taxpayer on an income of €100,000.

Gerald Nash (Louth, Labour)
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347. To ask the Minister for Finance the estimated yield from a 1% levy applied to wealth in excess of €1 million for a single adult, double that for a couple; his views on the contention in a recent report (details supplied) that such a levy on wealth would raise approximately €248 million for the Exchequer; and if he will make a statement on the matter. [39901/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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At the outset the Deputy should note that wealth can be taxed in a variety of ways, some of which are already in place in Ireland. Capital Gains Tax (CGT) and Capital Acquisitions Tax (CAT) are, in effect, taxes on wealth, in that they are levied on an individual or company on the disposal of an asset (CGT) or the acquisition of an asset through gift or inheritance (CAT). Deposit Interest Retention Tax (DIRT) is charged at 33%, with limited exemptions, on interest earned on deposit accounts. Local Property Tax (LPT) introduced in 2013 and recently amended is a tax based on the market value of residential properties.

In order to estimate the potential revenue from a wealth tax, it would first be necessary to identify the wealth held by individuals. I am informed by the Revenue Commissioners that they currently have no statistical basis for compiling estimates in relation to a potential wealth tax. Although an individual's assets and liabilities are declared to the Revenue in a number of specific circumstances (for example, after a death), this information is not a complete measure of financial assets in the State, nor is it recorded in a manner that would allow analysis of the implications of an overarching wealth based tax. Therefore I cannot provide you with what the estimated yield from a 1% levy applied to wealth in excess of €1m for a single adult, or for a couple.

I note the recent ESRI report that the Deputy refers to which examines the issue of a wealth tax. What is clear from this report is that in order for a wealth tax to raise a significant amount of revenue it would have to contain few exemptions and apply from a relatively low level of wealth. For instance in order to raise the €248m referred to in the question there would be a need to include principal private residences, farms, businesses and pensions. This would therefore include a lot of illiquid assets which would be subject to annual taxation. The report also notes that the use of exemptions has the potential to create distortionary effects on how people save.

The Government has no plans to introduce a wealth tax, although all taxes and potential taxation options are of course constantly reviewed.

Gerald Nash (Louth, Labour)
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348. To ask the Minister for Finance the estimated yield from raising the VAT rate for the tourism and hospitality sector from 9% to 13.5% in 2022; and if he will make a statement on the matter. [39902/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The most recent estimate for extending the application of the 9% VAT rate on Tourism and Hospitality related items from 1 January 2022 until 31 August 2022 is that it will cost the exchequer €350m. If a 13.5% rate applied across these sectors for all of 2022 our estimate is that the yield to the exchequer would be approximately €525.

Gerald Nash (Louth, Labour)
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349. To ask the Minister for Finance the estimated savings that would be made by ending the refundable element of the research and development tax credit from 1 January 2022; and if he will make a statement on the matter. [39903/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that is not possible to accurately predict the yield from ending the payable element of the Research and Development (R&D) tax credit, as information in respect of the future payments of the credit, which is dependent on both the future profitability of claimant companies as well as their level of qualifying R&D activity, cannot be known in advance.

However, I am advised by Revenue that information in respect of the R&D tax credit is available at: . This includes the cost of payable tax credits for recent years. The most recent year for which returns information is available presently is 2019.

Gerald Nash (Louth, Labour)
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350. To ask the Minister for Finance the expected yield from introducing a digital services tax on the same basis as France, Italy and Spain with a 3% tax rate (details supplied); and if he will make a statement on the matter. [39904/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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Although the Digital Services Taxes introduced in France, Italy, and Spain are not precisely the same as each other, all three share substantial overlaps with the Digital Services Tax proposed by the European Commission in 2018. When making its proposal, the Commission estimated that an EU-wide Digital Services Tax could yield €5 billion per annum, to be shared between all EU Member States, based on levels of activity in Member States.

It would be reasonable to assume that Ireland’s share of that estimated yield could be calculated in proportion to the population of Ireland as a share of the population of the EU overall. Eurostat has estimated the population of Ireland to be 0.9% of the total population of the EU. Applying this to the Commission’s overall estimated yield would mean that Ireland could collect approximately €45 million from introducing a Digital Services Tax of the type mentioned. The net yield would be reduced to the extent that deductions from company profits for Digital Services Tax paid would reduce corporation tax receipts.

The European Commission’s proposal was based on (1) a €750 million global revenue threshold and (2) an EU-wide €50 million revenue from in-scope services threshold. Based on available data, it is not possible to estimate the potential yield of a Digital Services Tax with different thresholds. It should be noted also that the ongoing Pillar One work of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting will provide for the removal of Digital Service Taxes and other similar measures across the world. I have expressed support for that Pillar.

Gerald Nash (Louth, Labour)
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351. To ask the Minister for Finance the estimated cost of reintroducing tax relief at the standard rate on trade union subscriptions on the same basis as applied up to its abolition in 2011; and if he will make a statement on the matter. [39906/21]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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418. To ask the Minister for Finance the estimated cost of restoring tax relief for trade union subscriptions. [41157/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 351 and 418 together.

Tax relief for Trade Union subscriptions was previously provided for under section 472C of the Taxes Consolidation Act 1997. The relief was introduced in 2001 and abolished from 2011 onwards.

A review of the appropriate treatment for tax purposes of trade union subscriptions and professional body fees was carried out by my Department in 2016 and included in the 2016 report on tax expenditures published on Budget day 2016. The review may be found at the following link:

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The review concluded that:

"analysis of the scheme using the principles laid down by the Department’s Tax Expenditure Guidelines shows that it fails to reach the evaluation threshold to warrant introduction in this manner.

The reinstatement of this tax relief would have no justifiable policy rationale and does not express a defined policy objective. Given that individuals join trade unions largely for the well-known benefits of membership, and the potential value of the relief to an individual would equate to just over €1 per week, this scheme would have little to no incentive effect on the numbers choosing to join. There is no specific market failure that needs to be addressed by such a scheme, and it would consist largely of deadweight."

The following table sets out details of the cost of the tax relief for trade union subscriptions in the seven years immediately prior to its end, including 2010 (in which year, the measure cost some €26 million):

Gerald Nash (Louth, Labour)
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352. To ask the Minister for Finance the estimated cost to reintroduce a relief for rent credit as existed up to 2010 but without any age bands and available to all tax payers at the standard rate of income tax for amounts of rent paid (details supplied); and if he will make a statement on the matter. [39907/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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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. The ending of the relief 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.

At the time of its restriction, the rental tax relief cost the Exchequer up to €97m per annum. On certain assumptions, it is likely that the annual cost of the measures set in the details supplied out would be higher. However, I am advised by Revenue that it does not have sufficient data on which to accurately calculate the expected costs of the measures (including the number of tax-payers who could avail of the relief and their individual capacities to absorb the various proposed credits).

Gerald Nash (Louth, Labour)
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353. To ask the Minister for Finance the yield to Exchequer from the betting duty in each of the past three years; the anticipated yield that would accrue to the Exchequer from increasing the betting duty from 2% to 3% and increasing the duty of 25% on commissions earned by betting intermediaries to 30%; and if he will make a statement on the matter. [39908/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the Ready Reckoner, which is published on the Revenue website, shows on page 26, the estimated yield from changes to the Betting Duty rate. I am further advised that an estimate for the increase in the duty on commissions is not presently available. However, a tentative estimate for the increase to 30% is approximately €1 million.

Revenue has confirmed that Betting Duty receipts from traditional, remote and betting intermediaries is available for 2018 and 2019 on the Revenue website.

The breakdown of the 2020 receipts is provided in the table below.

Gerald Nash (Louth, Labour)
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354. To ask the Minister for Finance the estimated additional yield from a 25 cent increase per pack of 20 cigarettes with an additional 50% for RYO and a 50c increase with an additional 50% for RYO in tabular form; and if he will make a statement on the matter. [39909/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the ‘Ready Reckoner’, which is published on the Revenue website, shows on page 25, the estimated yield from changes in duties on cigarettes. These estimates assume pro-rata increases in other tobacco products.

The table below provides estimated yield for increases to roll your own tobacco (with the assumption of no change in behaviour by smokers).

Gerald Nash (Louth, Labour)
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355. To ask the Minister for Finance if a costing pathway with first year yield for equalisation of diesel and petrol excise rates over four years in tabular form will be provided; and if he will make a statement on the matter. [39913/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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Mineral oil tax (MOT) which comprises a carbon and non-carbon component is applied to auto diesel and petrol. There is a lower non carbon component charge applied to auto diesel. The non-carbon charge applied to auto diesel is 42.572 cents per litre while the equivalent charge on petrol is 54.184. As diesel emits more carbon dioxide when combusted, the application of the carbon tax results in a higher carbon charge on auto diesel; the carbon charge is 7.752 cents per litre of petrol and 8.966 cents per litre of diesel.

The overall rate of MOT (carbon and non-carbon charge combined) is 61.936 for petrol and 51.538 for auto diesel.

The difference in the non-carbon charge, commonly referred to as an Excise Gap, is 11.6 cents. Increasing the charge on diesel by 3 cents annually would equalise the rates over a four year period as set out in the table below. It should be noted that as per the trajectory of carbon tax rate increases legislated for in Finance Act 2020, the carbon component charge of MOT will increase annually out to 2030. The pathway below includes the impact of the carbon tax rate increases which results in a higher overall rate of MOT applied to auto diesel in this scenario by 2025.

Excise Pathway to Equalisation by 2025 (by adding 3 cent annually)

Petrol (cent per litre)

Diesel (cent per litre)

The ready reckoner which can be accessed at the website address below, indicates that a 3 cent increase in the rate of auto diesel would yield €83 million in a full year.