Barry Ward (Dún Laoghaire, Fine Gael)
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264. To ask the Minister for Finance the position regarding the life insurance premium levy; if the recommendations in relation to this levy, outlined in the report titled ‘Funds Sector 2030 Report’, are under consideration; and if he will make a statement on the matter. [52702/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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As you are aware, in October 2024 my predecessor published “Funds Sector 2030: A Framework for Open, Resilient & Developing Markets.” That report set out 42 recommendations to cement Ireland’s position as a leading global hub for funds and asset management.

This report sets out a series of recommendations to ensure that, in pursuit of continued growth in the funds and asset management sector, Ireland’s funds sector framework remains resilient, future-proofed, supportive of financial stability and a continued example of international best-practice. Recommendation 23 of the Fund Review Report includes the consideration of the repeal of the 1% Life Assurance Levy (the levy), as well as the removal of the eight-year deemed disposal requirement for Irish domiciled funds and life products, alignment of tax rates across different investment choices and loss relief.

It should be noted that the levy, which was introduced in 2009 as a revenue-raising measure, does not apply to other collective investments (i.e. funds) or direct investments in financial instruments.

The 2025 Programme for Government has committed to progress and publish an implementation plan taking into consideration the Funds Review recommendations to unlock retail investment and opportunities to grow this sector in Ireland. This is a complex area of taxation that encompasses a wide breadth of tax legislation on domestic funds, life assurance products and offshore funds. Detailed consideration is therefore being given to the best way to bring about the necessary reforms and to support a greater level of retail investment in capital markets. It is likely given the breadth of the Funds Sector 2030 review that the delivery of any agreed associated tax measures will take place over multiple Finance Bill cycles. This work will also take account of developments at an EU level in respect of the Savings and Investment Union.