Malcolm Byrne (Wicklow-Wexford, Fianna Fail)
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362. To ask the Minister for Finance the measures his Department is putting in place to monitor the reduction in VAT on certain services from 13.5% to 9.5%; and whether it will be passed on to the consumer; and if he will make a statement on the matter. [55196/25]

Malcolm Byrne (Wicklow-Wexford, Fianna Fail)
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363. To ask the Minister for Finance the measures his Department is putting in place to monitor the reduction in VAT on new apartments from 13.5% to 9.5%; whether it will be passed on to the purchaser; and if he will make a statement on the matter. [55197/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 362 and 363 together.

VAT operates across the EU in accordance with a common framework set by EU VAT law, with which Irish VAT law is required to comply. VAT is a consumption tax, levied on the cost of a good or service. However, it is designed so that the supplier, and not the consumer, is obliged to account for the tax. The VAT on the supply is based on the selling price the business charges the customer. In most economic sectors, businesses are free to decide on the price level that they charge their customers and on changes to that level. VAT law does not regulate the selling price, nor does it require businesses to alter prices when VAT rates are raised or lowered. Rather, the general VAT law obligation on a business is to properly account to the tax authority for VAT on a supply at the correct tax rate, based on the amount the business charges its customer, and subject to certain rules.

Last week, in Budget 2026, I announced several measures that will apply the second reduced VAT rate of 9% to certain supplies that were previously subject to VAT at the reduced rate of 13.5%. As outlined in my speech, there are different policy objectives underlying each of these various measures. Therefore, the measures can be expected to have different impacts in the various specific market sectors to which they relate, including as regards whether their impact may be more inclined to affect supply or price level.

The temporary application of the second reduced VAT rate to the supply of gas and electricity had been due to expire on 31 October 2025, with such supplies then due to revert to the 13.5% reduced VAT rate. As part of the Budget, a Financial Resolution was passed by the Dáil which now extends the application of the 9% rate to gas and electricity until 31 December 2030. This will be confirmed in the Finance Bill. A temporary reduction for these supplies was first introduced in May 2022 as part of the Government’s response to the then energy crisis, and it has been extended since then in order to reduce the impact on households of the cost of living. While the pricing of utilities is a matter for the independent Commission for Regulation of Utilities, I understand that the impact of the VAT rate reduction for gas and electricity has been passed on to consumers.

The 9% VAT rate will also apply to the supply of apartments, as part of social policy. Following a Financial Resolution passed by the Dáil on Budget Day, this measure applies from 8 October 2025 until 31 December 2030, and this will be confirmed in the Finance Bill. The policy aim of the rate reduction is to stimulate the supply of apartments by helping to address the viability gap that has been identified as a factor constraining suppliers in the market from delivering the required quantity of apartment units to meet housing demand.

With effect from 1 July 2025, the 9% rate will also apply to hospitality sector food and catering and to hairdressing services. This will be legislated for in the forthcoming Finance Bill. As outlined in my Budget speech, the objective of the measure is to support businesses in these services sectors who are facing increase cost pressures, and therefore the measure is expected to support over 150,000 jobs in these sectors.

As I have indicated, subject to certain regulatory restrictions that apply in specific sectors such as utilities, it is generally a matter for individual suppliers to determine their price levels, and this will remain the case. While my Department does not monitor the price impacts of specific tax rate changes, it will continue to keep the effectiveness of the overall VAT system under review, in liaison with Revenue who, as part of their role in collecting tax and administering the tax system, will continue to ensure compliance with VAT law requirements.

Peadar Tóibín (Meath West, Aontú)
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364. To ask the Minister for Finance the amount collected in carbon tax in each month since its establishment, in tabular form. [55215/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the amounts collected in Carbon Tax in each month since its establishment are shown in the following tables.