Michael Cahill (Kerry, Fianna Fail)
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262. To ask the Minister for Finance if a new special savings incentive account will be considered to encourage improved savings habits and to help boost the economy during downturns; and if he will make a statement on the matter. [2567/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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On 22 October 2024, following Government approval, the former Minister published the ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’ - a wide-ranging review of the funds and asset management sector.

The terms of reference included review of the taxation regimes for funds, life assurance policies and other related investment products. As part of this aspect of the review, proposals made in relation to the development of an incentivised retail savings and investment product were considered.

The report was very timely given the interest in growing retail savings and investments in both Ireland and in the new mandate of the European Commission.

The report made eight recommendations on the topic of retail investment, including recommendations to better align the tax on investment funds and life assurance products with that of direct equities by removing deemed disposal and aligning the rate of tax to 33%.

The report noted that there may be merit in exploring an incentivised savings and investment account in due course. However, the report concluded that measures proposed for amending the existing taxation of investment funds and life assurance products should be prioritised as these address the most substantive issues raised as part of the review.

The Programme for Government has committed to progress and publish an implementation plan for consideration in Budget 2026 taking into consideration the Funds Review recommendations to unlock retail investment and opportunities to grow this sector in Ireland.

Separately, the Programme for Government committed to explore the establishment of a managed savings account for new-borns with an initial once-off contribution by the State, ensuring lower income families benefit most from its inception.