Cathal Crowe (Clare, Fianna Fail)
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244. To ask the Minister for Finance the reason the beauty industry is subject to a VAT rate of 13.5% while the hairdressing sector pays a 9% rate; if this anomaly can be rectified; and if he will make a statement on the matter. [3175/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The VAT rates applying in Ireland are subject to the requirements of EU VAT law with which Irish VAT law must comply. While hairdressing services apply the 9% rate from 1 November 2020, services consisting of the care of the human body, including beauticians, are subject to the 13.5% rate.

This arises from the fact that many of goods and services to which Ireland applies a reduced rate of VAT, including services related to care of the human body, have their basis under an EU derogation that provides that as Ireland applied a reduced rate to these items on 1 January 1991, we are entitled to continue applying that reduced rate to those items. However, this is conditional on the rate being no less than 12%. These are known as ‘parked’ items, and are provided for under Article 118 of the EU VAT Directive. As the services provided by beauticians are part of these parked items, it is not possible for Ireland to apply the rate of 9% to them.

Éamon Ó Cuív (Galway West, Fianna Fail)
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245. To ask the Minister for Finance the arrangements that have been made to issue a notice of liability for property registration tax for 2022 including the bar code to all those who have selected to pay in their local post office (details supplied); and if he will make a statement on the matter. [3256/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I understand the Deputy is referring to the payment of Local Property Tax (LPT). LPT is a self-assessed tax, administered in accordance with the provisions set out in Finance (Local Property Tax) Act 2012 (as amended).

I am advised by Revenue that it wrote to approximately 1.4 million property owners in September and October 2021 advising them of their statutory obligations for the new LPT ‘valuation period’ (2022 to 2025). These obligations included determining the market value of their residential properties at 1 November 2021, filing their LPT return/s and paying or arranging to pay their LPT liability for 2022.

As part of campaign to contact 1.4 million property owners, Revenue identified approx. 200,000 property owners who had not previously engaged with them online. These property owners were sent hard copy paper LPT1 Forms, which gave them the option to submit their valuation to Revenue by way of paper return.

A barcode is not required to make a payment in the post office. Payment can be made once the property owner provides their Property ID and their PIN number. This is available on all LPT related correspondence, can be found online through myAccount or ROS, or can be provided to a property owner over the phone at Revenue’s LPT Helpline 01 7383626.

Willie O'Dea (Limerick City, Fianna Fail)
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246. To ask the Minister for Finance the justification for commercial landlords being allowed to write-off their defects levies against their tax liabilities given owner-occupiers and social landlords cannot; and if he will make a statement on the matter. [3283/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The tax treatment of commercial activities, including the rental of property, typically differs from that which applies to private individuals. For the business owner, the costs associated with running the business may be deductible for tax purposes.

As the Deputy may be aware, the Minister for Housing, Local Government and Heritage, has established an Independent Working Group to examine the issue of defective housing. Officials from my Department participate in this Working Group. The objectives of the group are to identify the scope of relevant significant defects in housing, to evaluate the scale of housing affected, to propose a means of prioritising defects, to evaluate the cost of remediation, to recommend appropriate mechanisms for resolving defects and, to consider financing options in line with the Programme for Government commitment to identifying options for those impacted by defects to access low-cost, long-term finance.

Separately, my Department's Tax Expenditure Guidelines are clear that a tax-based intervention should only be considered where it would be more efficient than a direct expenditure measure.