Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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227. To ask the Minister for Finance to give a full-year cost of lost VAT to the Exchequer by introducing price controls that cap petrol/diesel at €1.30 and 1.40 per litre; electricity at 25c per kilowatt hour; natural gas at 8c per kilowatt hour and oil (kerosene) at €1 per litre; and if he will make a statement on the matter. [31013/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I am advised by Revenue that the theoretical estimated full year cost of introducing these measures is provided in the table below. The Deputy should note, however, that a price cap of this nature would result in operators selling fuel at below cost which is not sustainable in any business. The estimates are based on the most recently available price information and do not take account of any behavioural change by either vendors or purchasers.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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228. To ask the Minister for Finance the full-year cost of reducing the pension earnings limit from €115,000 to €60,000; and if he will make a statement on the matter. [31014/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I am advised by Revenue that the estimated full year yield for the proposed decrease in the earnings limit for occupational pension schemes, RACs and PRSAs can be found by consulting page 10 of the Revenue Ready Reckoner, published on the Revenue website at: www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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229. To ask the Minister for Finance the full-year revenue that would be generated by increasing CGT to 40%; and if he will make a statement on the matter. [31015/23]

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 Capital Gains Tax (CGT) is published on page 14 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.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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230. To ask the Minister for Finance the full-year revenue that would be generated by establishing a new rate of corporate tax of 50% on the profits of all energy companies; and if he will make a statement on the matter. [31016/23]

Michael McGrath (Cork South Central, Fianna Fail)
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While wholesale energy prices have fallen from the exceptional peaks in late 2021 and in 2022, energy policy, including increasing costs of energy supply and the taxation of profits, remains a matter of key concern to the Government.

The cost of energy supply is complex and there are many factors which must be considered including energy security, rising input costs, costs to consumers and the need to reduce dependence on fossil fuels. The complexities of the energy market and the range of producers and contracts must also be acknowledged - for example, the Renewable Energy Support Scheme (RESS) contains strong consumer protection measures, with wholesale market revenues above the auction price returned to electricity consumers through the Public Service Obligation Levy.

I am advised by Revenue, the gross additional yield from increasing the corporation tax rate from 12.5% to 50% on the taxable profits of all energy providers is tentatively estimated to be in the region of €460 million. This estimate is based on the 2021 Corporation Tax returns of energy providers, the latest year for which fully analysed data are available and assumes no behavioural change in response to the proposed increase in rate.

However, the Deputy will be aware that, in response the increase in energy prices last year, mainly as a result of the war in Ukraine, on 30th September 2022 the EU Energy Council agreed an Energy Windfall Regulation (Council Regulation (EU) 2022/1854 of 6 October 2022 on an emergency intervention to address high energy prices). In addition to electricity demand reduction measures, the Regulation contains two measures targeted at windfall gains in the energy sector as follows:

(i) A Temporary Solidarity Contribution (TSC) on a measure of “excess” taxable profits for the fossil fuel production and oil refining sector for the years 2022 and/or 2023, and

(ii) An electricity market price cap for non-gas electricity generators, for the period 01 December 2022 to 30 June 2023, that have not seen significant increases in their generation costs (i.e. primarily renewables).

The Department of the Environment, Climate and Communications (DECC) have responsibility for implementation of the Regulation, with support from the Department of Finance, and other departments and agencies. DECC last week published a Bill to implement the TSC, with the aim of having the legislation passed before the summer recess. DECC also state their intention to bring a separate Bill to implement the electricity market price cap to Government in July, with the aim of having it passed when the Oireachtas resumes after the summer recess.

The Regulation allows proceeds from these revenue raising measures to be used for purposes including support for households and businesses affected by high energy prices, and support for investment in renewable energy. A future Government decision will be required to decide on how best to distribute the proceeds.

It is worth noting that the Government has taken a number of measures to reduce the burden on consumers in relation to the cost of energy. This includes providing a series of €200 energy credits to every household in the country; reductions in fuel excise duty; and a reduction in the VAT rate for electricity and gas.