Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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453.To ask the Minister for Finance the full-year revenue that would be generated by increasing capital gains tax to 40%; and if he will make a statement on the matter. [33741/24]

Jack Chambers (Dublin West, 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. An update of the Ready Reckoner is due to issue in the coming weeks.

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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454.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. [33742/24]

Jack Chambers (Dublin West, Fianna Fail)
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As a small open economy, connected to Europe, the US and the wider world, Ireland is committed to a competitive, transparent and stable corporation tax system. As the Deputy will be aware, the trading profits of companies in Ireland are generally taxed at the standard corporation tax rate of 12.5%, and under the Pillar Two Minimum Tax Directive the effective rate has increased to 15% for in-scope companies.

Imposing additional taxes or levies on certain sectors would involve increased complexity and could change the attractiveness of Ireland's corporate tax regime. While it is possible that imposing an additional fiscal burden could lead to theoretical gains, there is a risk that this imposition could lead to lower levels of economic activity and to companies passing the additional burden onto their suppliers or consumers.

In relation to introducing a higher corporation tax rate on energy companies, a number of factors would need to be considered. Firstly, there is the potential of higher prices for energy consumers who have only recently seen very welcome reductions from previous historic highs, this being at a time of significant cost of living pressures. The proposed CT rate rise could also have a negative impact on employment levels in energy companies if cost-cutting measures are introduced in response. Finally, a significantly higher CT rate could reduce competition in a sector that has previously seen the departure of a number of energy providers.

The Deputy may be aware that, outside of corporation tax on energy company profits, there are a number of taxes already applied to energy products in Ireland, including the Mineral Oil Tax, carbon tax, electricity tax and VAT. There are also certain levies on some energy products and these are under the remit of the Minister for the Environment, Climate and Communications.

The Deputy will also be aware that, arising from an EU Regulation introduced in late 2022 to alleviate pressure then affecting energy consumers due to, among other factors the war in Ukraine, two revenue raising measures were introduced for years 2022 and 2023. Firstly, a Temporary Solidarity Contribution (TSC) was levied on Irish fossil fuel producers for years 2022 and 2023. Secondly, an electricity market price cap was placed at varying levels on the market revenues of electricity providers located here. Both of these measures are under the remit of the Minister for the Environment, Climate and Communications. However, it is worth noting that proceeds from these measures have been used to support final energy consumers, including households and businesses.

I am advised by Revenue that the gross additional yield from increasing the corporation tax rate from 12.5% to 50% on taxable profits of all energy providers is tentatively estimated to be in the region of €540 million. This estimate is based on the 2022 Corporation Tax returns of energy providers, the latest year for which fully analysed data is available and assumes no behavioural change in response to the proposed increase in rate.