Pat Gallagher (Donegal, Fianna Fail)
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691. To ask the Minister for Finance if he is satisfied that the defective concrete products levy sufficiently addresses industry accountability or contributes meaningfully to redress funding; if any alternative funding models are being considered; and if he will make a statement on the matter. [42895/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Defective Concrete Products Levy (DCPL) is provided for in Part 18E of the Taxes Consolidation Act (TCA) 1997. The DCPL was introduced by section 99 of the Finance Act 2022, and was amended in section 93 of the Finance (No.2) Act 2023. The levy is calculated at 5% of the open market value of products within the charge of the levy on the date of their first supply. The concrete products within the scope of the levy are concrete that is ready to pour which is within the 13.5% VAT rate (excluding pouring concrete used in the production of precast products) and two types of masonry units which are required to comply with certain Harmonised European Standards as referenced in the Official Journal of the European Union (or any adopted national version of such Harmonised European Standard).

The levy has applied to the first supply of concrete products in scope since 1 September 2023.

The intention of the levy is to raise revenue to help offset the funding of the Defective Concrete Blocks Grant Scheme which was introduced by the Minister for Housing, Local Government and Heritage. I note that the levy has raised over €40m to date for this purpose.

I remain of the view that any additional costs that apply to the building of houses arising from this levy are minimal, bearable and reasonable in light of the need for the construction industry to make a contribution, however small, towards the cost of the Defective Concrete Block Redress Scheme.

I currently have no plans to revisit this levy, though as with all taxes, it is kept under consideration by my Department.