James Geoghegan (Dublin Bay South, Fine Gael)
Link to this: Individually | In context

270. To ask the Minister for Finance the position regarding the roadmap for the taxation of retail investment currently being developed by his Department, with specific regard to any reforms to the deemed disposal tax for exchange traded funds; the timeline for the publication of the roadmap; if any cost estimate was done in advance of the last budget in respect of the deemed disposal rule for Irish investors in exchange-traded funds (ETFs); and to provide that figure; and if he will make a statement on the matter. [67228/25]

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context

I am committed to taking the necessary action to support retail investment in Ireland. Work is continuing on the roadmap for the taxation of retail investment announced in Budget 2026. The roadmap will be published in early 2026 and will set out an approach to simplify and adapt the tax framework to further support retail investment. This roadmap will facilitate due consideration of the Funds Sector 2030 Report, which made recommendations in relation to deemed disposal. It will also take into account the European Commission’s recommendation on Savings and Investment Accounts. I hope that further progress can be made across coming budgets to address some of the existing obstacles to greater retail investment, whilst maintaining important and necessary anti-avoidance measures.

Regarding the cost estimate of changes to deemed disposal, it is important to note that the information available to Revenue does not allow them to isolate the tax returned due to deemed disposal rules from other events which give rise to a tax liability. If it was assumed that all tax paid by funds in respect of unit holders, the tax paid by life companies in respect of policy holders and income tax accounted for by individuals in respect of their investments in Irish domiciled funds, offshore funds and life products were as a result of deemed disposal, removing deemed disposal could give rise to a potential cost of €284 million, based on the tax paid over the last eight years. As part of Budget 2026 an estimate was prepared for the Exchequer impact of deemed disposal not applying in a particular year, assuming that deemed disposal was closer to 50% of the total tax paid. This assumption results in an estimated full year cost to the Exchequer of €142 million for no tax arising from deemed disposal being paid in that year. However, the actual cost in a particular year could vary where the proportion of tax which is deemed disposal is higher or lower, or where the gains are larger or smaller than the eight year average used for this estimate.

Gillian Toole (Meath East, Independent)
Link to this: Individually | In context

271. To ask the Minister for Finance when a review of the rate of value added tax on oral vitamin and mineral supplements, currently 13.5% rate, will be carried out; and the reason there is a disparity in VAT classification between oral pharmaceuticals, and oral supplements for health promotion; and if he will make a statement on the matter. [67253/25]

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context

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.

The supply of food supplements of a kind used for human oral consumption is subject to the reduced rate of VAT, currently 13.5%. The supply of medicine of a kind used for human oral consumption is subject to the zero rate of VAT.

Human oral medicines and food supplement products are separate categories of products. Food supplement products are not medicines and do not fall within the provision for human oral medicine. Only when a human oral product is licensed or authorised by the Health Products Regulatory Authority (HPRA) as a medicine will it be considered a medicine for VAT purposes. These products are listed on the HPRA website and carry a product number, such as a Product Authorisation (PA) number on the label. Certain folic acid and other vitamin products for oral human consumption are licensed / authorised by the HPRA and are therefore zero rated as human oral medicines.

Revenue has published detailed guidance on the VAT treatment of Human oral medicines and food supplement products on Revenue.ie.

Food supplements: www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/goods-food-supplements.pdf.

Human medicines: www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/vat-treatment-of-human-medicines.pdf.