Pa Daly (Kerry, Sinn Fein)
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148. To ask the Minister for Finance if he would consider lowering the VAT rate for domestically and sustainably produced wood pellet products, firewood stove, pellet stove and pellet boilers. [40726/24]

Michael Healy-Rae (Kerry, Independent)
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149. To ask the Minister for Finance if a lower rate of VAT would be considered for firewood, wood pellets and wood briquettes (details supplied); and if he will make a statement on the matter. [40758/24]

Jack Chambers (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 148 and 149 together.

The VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT. Currently, Ireland has a standard rate of 23% and two reduced rates of 13.5% and 9%.

A reduced rate of 13.5% already applies to firewood and other solid fuels.

No decision was made in Budget 2025 to apply a further reduced rate of 9% to firewood/wood pellets and wood briquettes. If such a measure was proposed it would form part of the normal Budget and Finance Bill process where the cost and impact could be considered.

The Deputy should note that as with other VAT rate reductions, while the VAT charged must always be correct a company can increase the base price of a product so that the final consumer does not benefit from the VAT reduction.

Finally, I note the suggestion that lower VAT rates be applied to domestically produced renewable and sustainable fuel. In the application of VAT rates, the Directive does not provide discretion for Member States to consider the degree to which goods or services are sourced domestically or are sourced from other countries, nor does it allow different VAT rates to apply to goods depending on whether they are produced here or are brought into the State from elsewhere.

Pearse Doherty (Donegal, Sinn Fein)
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150. To ask the Minister for Finance to outline the projected impact of BEPS pillar one and how it is accounted for in the revenue for each year between 2025 to 2030 in the economic and fiscal outlook presented on Budget day. [40773/24]

Jack Chambers (Dublin West, Fianna Fail)
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The Budget 2025 tax revenue projections incorporate a net negative €2 billion impact from both pillars from 2026 on.

As the Deputy will be aware, work is still ongoing on the finalisation of Pillar 1 of the agreement and so the forecasts presented at Budget time are unchanged from previous forecasts. The situation will be monitored by my Department and the estimate revised once greater clarity is available.