Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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219. To ask the Minister for Finance to provide a full-year estimate of the revenue that would be generated by introducing a levy of 33% on commercial aviation fuel; and if he will make a statement on the matter. [31005/23]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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220. To ask the Minister for Finance to provide a full-year estimate of the revenue that would be generated if Ireland imposed the European Commission’s proposed tax on aviation fuel in Budget 2023; where that tax will be imposed on all flights, including executive and corporate flights; and if he will make a statement on the matter. [31006/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 219 and 220 together.

Ireland’s excise duty treatment of fuel used for air navigation is governed by European Union (EU) law as set out in Directive 2003/96/EC on the taxation of energy products and electricity, commonly known as the Energy Tax Directive (ETD). The provisions of the current ETD relating to aviation fuels are transposed into national law in Finance Act 1999 (as amended), which provides for the application of excise duty in the form of Mineral Oil Tax (MOT) to liquid fuels used for motor and heating purposes.

Under the current ETD, Member States must tax all fuels used for non-commercial aviation purposes. In line with EU law, MOT is applied to light oil (aviation gasoline) and heavy oil (jet fuel/Jet A1/jet kerosene) used for private pleasure flying. Private pleasure flying is defined as the use of an aircraft by its owner or the natural or legal person who enjoys the use either through hire or through any other means, for other than commercial purposes and, in particular, other than for the carriage of passengers or goods or for the supply of services for consideration or for the purposes of public authorities. The current rate of MOT for light oil used for private pleasure flying is €532.12 per 1,000 litres and for heavy oil is €466.10 per 1,000 litres.

With regard to light oil used for commercial air navigation, the current ETD gives Member States the option to fully or partially relieve the relevant excise duty. MOT law currently provides for a partial exemption for aviation gasoline used for all commercial air navigation and an effective rate of €299.85 per 1,000 litres applies.

Heavy oil is the most commonly used fuel type in commercial air navigation and the ETD currently obliges all Member States to exempt heavy oil used for intra-Community and international air transport purposes. A Member State may waive this exemption for intra-community flights but only where it has entered into a bilateral agreement with another Member State to tax fuel. No such agreements are currently in place across the EU. Regarding heavy oil used for commercial domestic air navigation, the ETD allows Member States to exempt such fuel use fully or partially. Currently, Ireland’s MOT law provides for a full MOT relief for heavy oil used for all commercial air navigation, including domestic, intra-community, and international.

With regard to the estimates the Deputy has requested, Revenue does not have the data required to provide these. The EU Commission proposal to revise the ETD proposes a phased introduction of mandatory fuel taxation for commercial aviation for intra EU flights. It is currently not possible to disaggregate fuel volumes data by use for domestic, intra EU or international flights. Furthermore, Revenue does not have the necessary price data relating to commercial aviation fuels that would enable it to generate an estimate for the amount of revenue that would accrue from the introduction of a 33% ad valorem levy on aviation fuel.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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221. To ask the Minister for Finance the full-year revenue that would be generated by establishing a new levy of 5% on the profits of all airlines and aircraft leasing companies; and if he will make a statement on the matter. [31007/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I am advised by Revenue that the gross additional yield from imposing a 5% levy on the taxable profits of all airlines and aircraft leasing companies is tentatively estimated to be in the region of €44 million, for a full year. These estimates are based on the 2021 Corporation tax returns of these companies, the latest year for which fully analysed data are available.

These estimates do not take account of any potential change in behaviour by the entities concerned in response to the suggested levy.

Currently the trading profits of companies in Ireland are generally taxed at the standard corporation tax rate of 12.5%. Imposing additional taxes on certain sectors would involve increased complexity and could change the attractiveness of Ireland's corporate tax regime. While it is possible that imposing such taxes could lead to theoretical gains, there is a risk of such taxes leading to lower levels of economic activity and to companies passing the additional tax burden onto their investors, suppliers and, ultimately, consumers.

As the Deputy will be aware Ireland signed up to the OECD Two Pillar agreement in October 2021, including the agreement of a global minimum effective rate of 15%, on a jurisdictional basis, for in-scope entities.

In consideration of the need for certainty regarding our corporation tax regime, and acknowledgment of the significant international corporate tax developments underway, I do not believe it is appropriate to introduce additional taxes or levies on companies at this time.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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222. To ask the Minister for Finance the estimated full-year revenue that would be generated by increasing the zoned land tax to 25% of market value of the land and where the levy will also be imposed if the planning permission is not commenced within 12 months of its granting or where the development is not completed within 36 months of the planning permission being granted; and if he will make a statement on the matter. [31008/23]

Michael McGrath (Cork South Central, Fianna Fail)
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RZLT is an annual tax, calculated at a rate of 3% of the market value of the land within its scope. The tax will be due and payable from 2024 onwards in respect of land which fell within the scope of the tax on or before 1 January 2022. Where land is zoned or serviced after 1 January 2022, the tax will be first due in the third year after the year in which it comes within scope.

The aim of the tax is to ensure that zoned serviced land which is ready to deliver housing is activated and the process of seeking, gaining and activating planning permissions is encouraged. The RZLT is a part of the process of ensuring that zoned serviced land is used in an effective and timely manner. The aim of the tax is not to raise significant revenue.

A draft RZLT map was published by local authorities on 1 November 2022. The purpose of the draft map was to allow landowners to see if their land is within the scope of the tax. If a landowner had seen that their land is included on the draft map and believes that it should not be, they had the opportunity to make a submission to the local authority by 1 January 2023 seeking to have the map updated and their land removed from the map, or they could have sought to have their land rezoned.

Local authorities considered the submissions received and made written determinations on whether the land should stay on the map or be removed from it. If a landowner requested a rezoning of their land, the local authority would consider the request and, if appropriate, they would commence a variation procedure to alter the zoning of the land. This variation procedure, and the local authority’s decision on whether or not to commence one, is part of the normal zoning process. If the landowner disagrees with the determination, they can appeal to An Bord Pleanála. Local authorities will publish a final residential zoned land map in December 2023.

The rate of 3% was set to achieve a balance between achieving the measure's essential purpose of encouraging the release of land for housebuilding purposes, but at the same time not being too penal.

In relation to the Deputy's question regarding the estimated revenue yield from an increase in the residential zoned land tax from 3% to 25% in a full year, where the levy will also be imposed if the planning permission is not commenced within 12 months of its granting or where the development is not completed within 36 months of the planning permission being granted, at this time it is not possible to estimate a projected yield increase as the mapping process by local authorities has not yet concluded.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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223. To ask the Minister for Finance the full-year revenue that would be generated by establishing a 10% levy on vacant or derelict residential property as per the number of vacant properties identified in the recent census but where properties tied up in probate, the fair deal scheme or holiday homes are excluded; and if he will make a statement on the matter. [31009/23]

Michael McGrath (Cork South Central, Fianna Fail)
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According to the preliminary Census figures released in June 2022, 166,752 vacant dwellings were recorded in Census 2022. The preliminary information also provided a breakdown by reason, this is available at:

www.cso.ie/en/releasesandpublications/ep/p-cpr/censusofpopulation2022-preliminaryresults/housing/

It should be noted that the Census measure of vacancy is a point in time indicator taken on Census night as to whether the property was inhabited or not on Sunday 3 April 2022, and is not intended to be a measure of long term vacancy or that these properties are available for re-use. A dwelling is classed as vacant by Census enumerators if it is unoccupied on Census night, is not used as a holiday home and is not usually inhabited by occupants who are temporarily absent at the time of census. Dwellings under construction and derelict properties are also not included in the Census count of vacant dwellings. The Census information does not include information on the valuation of properties.

Therefore, my Department or Revenue do not have the necessary information to calculate an estimate of the revenue effects sought by the Deputy.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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224. To ask the Minister for Finance the full-year cost of abolishing the help-to-buy scheme; and if he will make a statement on the matter. [31010/23]

Michael McGrath (Cork South Central, Fianna Fail)
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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 1997 outlines the definitions and conditions that apply to the HTB scheme.

I am advised by Revenue that the total value of claims under the HTB scheme for 2022, including both approved and pending claims is €180.2m, based on the claim-stage start date of the application.

For the purposes of the Budget 2023 documentation, a figure of €175 million was estimated as the cost of the scheme for 2023 and again for 2024. This estimate was derived by my Department using published Revenue annual statistics for the scheme for 2021 and the end-August 2022 monthly statistics.

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. However, although it does not take account of any potential changes in taxpayer behaviour, the above latest actual costs to-date and the above estimated costs can be assumed to be broadly indicative of the annual saving if the HTB scheme was abolished.

At present, HTB is subject to a sunset clause with an associated date of 31 December 2024.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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225. To ask the Minister for Finance the estimated full-year revenue that would be generated by increasing stamp duty on non-residential property to 10%; and if he will make a statement on the matter. [31011/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I am advised by Revenue that the estimated yield from increasing the rate of stamp duty on non- residential property is published on page 19 of the Revenue Ready Reckoner, available on the Revenue website at: www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf

While the exact changes sought by the Deputy are not provided, they can be estimated on a straight-line or pro-rata basis. These estimates do not take account of any potential change in behaviour by the taxpayers concerned in response to changes in the tax rate.