Ruairí Ó Murchú (Louth, Sinn Fein)
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212. To ask the Minister for Finance if he will provide an update on the review of the primary medical certification and appeal schemes; and if he will make a statement on the matter. [8870/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy should note that my Department and I share concerns that the Disabled Drivers and Disabled Passengers Scheme or DDS is no longer fit-for-purpose and believe it should be replaced with a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual.

However, this is very much a matter for Government as while my Department has oversight of the DDS, I do not have responsibility for disability policy.

As the Deputy is aware the National Disability & Inclusion Strategy or NDIS Transport Working Group recommended that the DDS be replaced with a modern, fit-for-purpose vehicular adaptation scheme. This is in line with the general view that we need to move away from a medical criteria-based approach to a needs-based approach.

Under the aegis of the Department of the Taoiseach, the sub-group convened to progress NDIS proposals for needs-based, grant-aided, modern vehicle adaptation supports to replace the DDS, have generated a report that has been submitted to the Department of the Taoiseach, for its consideration.

In that context, any further changes to the existing DDS would run counter to NDIS proposals to entirely replace the scheme with a modern, fit-for-purpose vehicular adaptation scheme.

Darren O'Rourke (Meath East, Sinn Fein)
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213. To ask the Minister for Finance his plans to change the tax treatment of the widow’s pension, to ensure that people in receipt of widow’s pension and who are working are not doubly penalised, particularly in light of the fact that if they become ill and can no longer work they cannot claim illness benefit; and if he will make a statement on the matter. [8914/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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In the first instance, the interaction between the Widow's, Widower's or Surviving Civil Partner's pension and Illness Benefit is a matter for the Minister for Social Protection rather than the Minister for Finance.

It is a general principle of taxation that all income, from whatever source, is income for tax purposes and this includes amounts paid to an individual by the Department of Social Protection (DSP), unless specifically exempted by legislation.

Section 19 of the Taxes Consolidation Act 1997 (TCA 1997) provides that income from offices or employments, and from annuities, pensions, or stipends payable out of State funds, is within the charge to tax under Schedule E. In addition, section 126 (2) TCA 1997 specifically provides that payments made under the widow’s (contributory) pension (now known as the Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension) are deemed to be emoluments to which Chapter 4 of Part 42 (Collection and recovery of income tax on certain emoluments (PAYE system)) applies. Accordingly, the Widow's, Widower's or Surviving Civil Partner's Pension (both contributory and non-contributory) and any employment income are subject to tax under Schedule E.

As the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances. However, I have no plans to change the tax treatment of the Widow's, Widower's or Surviving Civil Partner's pension.

Mattie McGrath (Tipperary South, Independent)
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214. To ask the Minister for Finance the measures he intends to introduce to compensate fuel merchants who are unable to compete with fuel entering the State from the north or Ireland, which is more competitive due to the taxes and regulations placed on merchants in this State; if he is aware of the number of fuel merchants at risk of going out of business due to the Governments measures on fossil fuels; and if he will make a statement on the matter. [8950/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Price differentials between fuels from different jurisdictions entering the State, arise for several reasons including differential tax rates. Other factors that affect coal prices include global market dynamics, costs of labour, exchange rates, as well as wholesale and retail pricing policy practices which may include additional charges to cover transport and distribution costs.

It is important to note that under the Treaty on the Functioning of the European Union, a Member State may not apply any barriers to the free movement of solid fuel into the State from other Member States, which under the Windsor Framework includes Northern Ireland.

I recognise that these price differentials as well as different environmental standards may incentivise cross border purchase of solid fuel.

My Department has previously engaged with the Solid Fuel Merchants of Ireland (SFMI) in this regard and are aware of their concerns.

I am advised by Revenue that it is conscious of cross-border price differentials and the risk of Solid Fuel Carbon Tax evasion. While private individuals many legitimately travel to Northern Ireland, purchase solid fuel and transport it into the State for their own use, commercial supplies in the State are subject to Solid Fuel Carbon Tax. In addition, Northern Irish suppliers making supplies directly to consumers in the State are liable to Solid Fuel Carbon Tax and must register with Revenue. Revenue advises that of the 144 suppliers currently registered for Solid Fuel Carbon Tax, approximately 5 per cent are based in Northern Ireland. I am further advised by Revenue that over the last two years it has carried out significantly increased numbers of Solid Fuel Carbon Tax compliance interventions, completing almost two hundred in 2024 which yielded over one million euro. In addition, Revenue enforced Solid Fuel Carbon Tax debt in 2024 of over €1.2 million.

Solid fuel standards from outside the state are also open to enforcement by local authorities under the State's environmental standards regulatory regime. In this regard new Solid Fuel Regulations came into effect on 31 October 2022, the primary focus of which is on the large-scale, commercial sale of smoky fuels, including smoky coal, turf and wet wood. The Department of the Environment, Climate and Communications (DECC) has oversight on the Air Pollution Act and relevant regulations. The Regulations are enforced by Local Authorities, who have significant powers under this environmental law to enforce the legal provisions aimed at preventing the marketing, distribution, sale and use of products which do not meet the standards that apply within the State.

As agreed by Government, some minor changes are being made to the Air Pollution Act to enhance enforcement provisions and better align them with the powers already available to local authority staff under similar legislation. I am advised by the Department of Environment, Climate and Communications that an Amendment Bill is currently being drafted based on the general scheme and will begin the normal legislative process through the Committee stages in the coming months.

Proposed amendments to the Act largely focus on measures to enhance the enforcement capacity of Local Authorities. They include:

• Strengthening the suite of enforcement tools available to Local Authorities to tackle air quality issues, such as the supply of unapproved solid fuels placed on the Irish market, to facilitate quicker, simpler and more proportionate enforcement at a local level.
• The introduction of a more extensive registration / permitting system for air pollution activities such as solid fuel production, transportation, and sales.
• Providing for the re-introduction of fixed payment notices for specific breaches of the Solid Fuels Regulations.
• Enhanced powers for enforcement staff – including the ability to seize, detain and / or destroy un-approved materials.

Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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215. To ask the Minister for Finance if consideration will be given to applying a 0% VAT rate to gluten-free food products; and if he will make a statement on the matter. [8962/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The VAT rating of goods and services is subject to the requirements of the EU VAT Directive with which Irish VAT law is obliged to comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within the categories of goods and services listed in Annex III, in respect of which Member States may apply a lower rate.

On this basis, Ireland applies the zero rate to food products, for example, bread, butter, cereals, meat, milk, and fruit/vegetables (fresh or frozen). Foods for special medical purposes for use under medical supervision to manage specific medical conditions, diseases, or disorders are also zero rated. However, certain foods are specifically excluded from the zero rate of VAT and are liable to either the reduced VAT rate of 13.5% or the standard rate of 23%, such as biscuits, cakes, savoury snacks, and confectionary products. Gluten free products are treated the same way as their equivalents: for example, gluten-free bread is zero-rated in the same way as bread, and gluten-free cakes or biscuits are subject to VAT in the same way as cakes and biscuits.

EU law provides that reduced rates of VAT can be selective and restricted to “concrete and specific aspects” of a category in Annex III, provided it does not infringe on the principle of fiscal neutrality. This principal requires that similar products are treated in the same manner for VAT purposes. As such, similar products cannot be rated differently, for example, a ‘biscuit’ versus a ‘gluten free biscuit’. Therefore, if a particular rate is applied, whether it is standard or reduced, it must be applied to all ‘biscuit’ products. As such, any VAT rate reduction given to gluten free food products such as gluten free biscuits, cakes, savoury products, and confectionary would also have to apply to their equivalents.