Barry Heneghan (Dublin Bay North, Independent)
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30. To ask the Minister for Finance if he will review the operation of the local property tax in view of the financial hardship it places on older citizens and their carers, particularly those on fixed or low incomes; if he will consider introducing exemptions or enhanced deferral arrangements for persons aged over 80 years and their full-time carers; and if he will make a statement on the matter. [57447/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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On the introduction of the Local Property Tax (LPT), the Government decided that a liability to the tax should apply to all owners of residential properties with a limited number of exemptions. Limiting the exemptions available allows the rate to be kept low for property owners who do not qualify for an exemption. There is no specific exemption from the requirement to pay LPT for persons aged over 80 years or their full-time carers under the Finance (Local Property Tax) Act 2012 (as amended), though homeowners in these circumstances may be entitled to an exemption on other grounds or may qualify for a deferral subject to meeting the qualifying conditions.

The LPT legislation provides for the possibility of deferring the charge to LPT in certain circumstances to assist individuals who may have difficulty paying the tax. A qualifying person may opt to defer, or partially defer, payment of the tax. Where a person qualifies for a full deferral, 100% of the liability can be deferred. Where a person qualifies for partial deferral, then 50% of the liability can be deferred. The balance of 50% of the tax must be paid. The deferred tax remains as a charge on the property and must be paid before a sale or transfer can be completed. Interest is charged at 3% per annum on the deferred amount.

It is also possible to apply for a deferral on the grounds of hardship if a person suffers an unexpected and unavoidable significant loss or expense, as a result of which a person cannot pay their LPT liability without suffering financial hardship. Further information regarding the deferral of LPT is available on the Revenue website at: www.revenue.ie/en/property/local-property-tax/deferral-of-payment/index.aspx

Following the enactment of the Finance (Local Property Tax and Other Provisions) (Amendment) Act 2025, the income thresholds for deferral of LPT for the upcoming valuation period will increase by between 30% and 40% depending on personal circumstances, as illustrated by the following table:

Finally, property owners experiencing difficulties in meeting their LPT obligations can contact Revenue through MyAccount at www.revenue.ie or by calling the LPT helpline at (01) 7383626 from Monday to Friday, 09.30 to 16.30.

Paul Lawless (Mayo, Aontú)
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31. To ask the Minister for Finance if he will request the European Commission to change the VAT classification for beauty salons, in order that they may benefit from the same reduced VAT rate as hairdressers announced in Budget 2026; and if he will make a statement on the matter. [57497/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Under the terms of the EU VAT Directive which Irish VAT law must comply, it is held that all economic activity is generally liable for VAT at the standard rate which Member States must set at a minimum of 15%. Ireland currently applies a standard rate of 23%. Under specific terms, Member States may set a reduced rate which must be at least 5%. Ireland currently has two reduced VAT rates: 13.5% and 9%.

There are two exceptions to applying the standard rate to supply of goods and/or services. Under article 105b of the Directive, Member States who were applying a reduced rate to specific goods and services may continue to do so. A condition for availing of this derogation is that a rate of at least 12% be applied and this rate be parked and not lowered further. Ireland has availed of this derogation for setting the current VAT rate of 13.5% to services involved in the care of the human body including those provided by beauty salons.

Under Annex III of the Directive, if a good or service is listed, Member States may apply a reduced rate. Hairdressing services are included in this list.

Expanding the scope of Annex III of the VAT Directive would require changes to the text rather than an opinion of the European Commission. Any changes to the text of the VAT Directive require unanimity among all Member States. The changes to Annex III that came into effect in April 2022 were the result of four years of negotiations. No further change to Annex III of the VAT Directive is expected to be proposed at this time.

Ruairí Ó Murchú (Louth, Sinn Fein)
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32. To ask the Minister for Finance if he will consider applying at the point of sale a zero rate of VAT on aids and appliances designed for usage by people with visual impairments, given the recent increased flexibility under EU VAT law and given the administrative burdens relative to the VAT refund order currently in place; and if he will make a statement on the matter. [57540/25]

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

On this basis, Ireland applies the zero rate of VAT to certain medical equipment and appliances, which includes canes for people who are blind or vision impaired, such as white mobility canes, long canes, symbol canes and support canes. The supply of corrective spectacles and contact lenses is liable to VAT at the standard rate.

In addition, EU law allows for certain historic VAT treatments to be maintained by a Member State under certain strict conditions, including that a historic treatment cannot be widened beyond its existing scope. On this basis, Ireland has retained its application of a relieving provision, the Value Added Tax (Refund of Tax) (No. 15) Order, 1981 (SI No. 428 of 1981).

This VAT Refund Order provides that people with disabilities may apply for a refund of VAT incurred on qualifying goods. The legislation makes the refund available to a person who, as a result of an injury, disease, congenital deformity, or physical or mental illness or defect, suffers from a loss of physical or mental faculty resulting in a specified degree of disablement, as detailed in the Order.

Under the law, the refund is available for goods (other than mechanically propelled road vehicles) which are aids or appliances specially constructed or adapted for use by a disabled person, and goods which, although not so specially constructed or adapted, are of such a kind as might reasonably be treated as such, having regard to the disablement of the person.

Accordingly I have no plans to extend the application of the zero rate of VAT to aids and appliances designed for usage by people with visual impairments.