Brendan Smith (Cavan-Monaghan, Fianna Fail)
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34. To ask the Minister for Finance the measures he will introduce to reduce the taxation burden on the retail sector due to the severe pressures this sector is encountering at present with increased costs; and if he will make a statement on the matter. [28245/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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As stated in the Programme for Government, this Government proposes to bring forward measures to support small and medium enterprises (SMEs), in particular the retail and hospitality sectors, acknowledging the increased cost pressures on these sectors. These measures will be implemented as part of the normal budget process as resources allow.

The Department of Enterprise, Trade and Employment has a number of initiatives in place specifically targeted at supporting SMEs. This includes the Power Up Grant, announced in Budget 2025, targeted at businesses in the retail and hospitality sectors. The grant which is now closed for new registrations offered a one-off flat payment of €4,000 to eligible businesses. This grant is a follow-up to the Increased Cost of Business scheme which has paid out over €244 million this year to approximately 75,000 SMEs (38,000 in the retail and hospitality sectors).

Budget 2025 also introduced enhancements to the enterprise supports under the remit of my Department. This includes an increase in the VAT registration thresholds, an increase in the R&D Tax Credit, enhancements to the Small Benefit Exemption as well as the Employment Investment Incentive.

From 1 January 2025, the existing VAT Registration Thresholds were increased to €42,500 for services and €85,000 for goods, assisting small businesses with increased costs.

The amount of the R&D tax credit payable in year one increased from €50,000 to €75,000.

The Small Benefit Exemption, which allows an employer to provide limited non-cash benefits or rewards to their workers without the payment of income tax, PRSI and USC, increased from €1,000 to €1,500 annually, and will also permit five non-cash benefits to be granted by an employer in a single year under this exemption.

The maximum amount on which an investor may claim relief under the Employment Investment Incentive increased from €500,000 to €1,000,000 annually.

Moreover, the Strategic Banking Corporation of Ireland falls under my Department’s remit. It currently has two schemes open for applications from SMEs which aim to facilitate access to credit at competitive rates for growing businesses and those investing in sustainability.

First launched in 2023, the Growth and Sustainability Loan Schemes is targeted towards supporting SMEs and farmers to grow their businesses, increase their resilience and enable them to transition to environmentally sustainable practices and systems. It provides for loans to SMEs, including primary producers, ranging from €25,000 to €3 million, for terms of seven to ten years. Loans of up to €500,000 can be provided on an unsecured basis.

The Green Transition Finance scheme provides flexible lending to support the green and sustainable transition of SMEs and Small Mid-Cap companies. This loan product is being implemented in cooperation with the European Investment Fund.