Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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444.To ask the Minister for Finance the estimated full-year revenue that would be generated by establishing four new income tax bands of 50% on earnings between €100,000 and €150,000, 55% on earnings between €150,000 and €200,000, 60% on earnings between €200,000 and €275,000, and 65% on earnings over €275,000; and if he will make a statement on the matter. [33731/24]

Jack Chambers (Dublin West, Fianna Fail)
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I am advised by Revenue that the estimated yield for the proposal outlined by the Deputy is €3.1 billion and €3.9 billion on a first and full year basis respectively.

It is important to be aware that estimates of tax policy changes for Income Tax are provided on the basis of the current Budget year (2024) rather than the next Budget year (2025). The Budget year costings for 2025 are prepared for the party costings service and are used to feed into costings requested by the Department of Finance in advance of the Budget. The Revenue Pre-Budget Ready Reckoner (published end August) will also be on the basis of Budget year 2025.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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445.To ask the Minister for Finance the full-year cost of abolishing the local property tax and introducing a tax on non-principal private residences (NPPR) as follows: single NPPR - €1,000; ten or less NPPRs - €1,500 per property; 11 or more NPPRs - €2,500 per property; and if he will make a statement on the matter. [33732/24]

Jack Chambers (Dublin West, Fianna Fail)
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I am advised by Revenue that, based on the latest available LPT returns, the estimated cost of abolishing the Local Property Tax in 2024 would be in the region of €531 million.

As the NPPR is a historic charge, Revenue does not currently hold adequate information to do such a costing.

However, using multiple property owners as the basis of the charges outlined by the Deputy, the expected yield is estimated to be in the region of €613 million. This costing is based on the latest available LPT returns and excludes properties owned by Local Authorities and Approved Housing Bodies.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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446.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. [33733/24]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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447.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 and where that tax will be imposed on all flights including executive and corporate flights; and if he will make a statement on the matter. [33734/24]

Jack Chambers (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 446 and 447 together.

Ireland’s excise duty treatment of aviation fuel is governed by European Union 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). In line with the ETD, Ireland currently applies an exemption from Mineral Oil Tax (MOT) to jet fuel used for commercial aviation. Jet fuel is the most commonly used fuel for commercial aviation. Aviation gasoline, which is much less commonly used in commercial aviation, is partially exempted from MOT and is subject to an effective MOT rate of €406.64 per 1,000 litres. Both the full MOT exemption for jet fuel, and the partial MOT exemption for aviation gasoline, apply to fuel used for domestic, intra-community and international flights.

Under the current ETD all fuel used for non-commercial aviation is mandatorily taxed. This means that MOT applies to any fuel used in 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. Current MOT rates, including those that apply to jet fuel and aviation gasoline used for non-commercial aviation, are published on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/energy-excise-duty-rates.pdf.

I understand that the Deputy is asking about mandatory taxation of fuels used for commercial aviation, as proposed under the recast of the ETD. It is important to note that the ETD proposals have not yet been agreed by Member States. Both the scope of mandatory taxation and the minimum rates are still under consideration, along with potential timeframes for implementation. Ireland is actively engaged with ongoing negotiations.

I am advised by Revenue that it is not possible to disaggregate fuel volumes data by use for domestic, intra-community or international flights. Therefore, estimations of future receipts can only be made across all flight categories. A full year estimate of the receipts that may be generated if Ireland applied the proposed minimum tax rate of €36.55 per 1,000 litres on jet fuel, is in the region of €60m. This estimate is based on data relating to MOT remissions supplied in traders’ tax returns and assumes no behavioural change. The estimate covers all commercial aviation, including domestic, intra-community, and international flights (non- intra-community). However, it is important to note that the ETD proposals for mandatory taxation of jet fuel do not extend to international flights.

With regard to aviation gasoline, the ETD proposals would apply a minimum tax rate of €34.40 per 1,000 litres. As Ireland’s effective MOT rate on aviation gasoline is €406.64 per 1,000 litres, no additional revenue would be generated on the introduction of mandatory taxation under the ETD proposals.

The Deputy is also asking for an estimate of the revenues that could arise from the introduction of a levy of 33% on commercial aviation fuel. I am advised that Revenue does not have the necessary price data on commercial aviation fuels that would enable it to generate an estimate of the revenue that would accrue from the introduction of a 33% ad valorem levy on these fuels.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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448.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. [33735/24]

Jack Chambers (Dublin West, 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 €33 million, for a full year. These estimates are based on the 2022 tax returns, 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. Ireland, moving in step with EU Member States, was among the first jurisdictions in the world to implement Pillar Two of that agreement last year. Pillar Two introduces a global minimum effective tax rate of 15 per cent for in-scope entities and the new rules apply for fiscal years of those businesses beginning on or after 31 December 2023.

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.