I note June is a non-VAT-due month yet receipts so far have been relatively robust, with cumulative VAT up by €0.6 billion at €11.6 billion, albeit reportedly about €100 million below profile. Will the Minister comment on the significance of these figures?
Sentiment score: 0.31
While the increase of €0.6 billion in cumulative VAT receipts is encouraging, there are signals of underlying volatility. VAT is approximately €100 million behind profile, as I stated. Although modest in percentage terms, that may indicate emerging trends. Will the Minister elaborate on what the Department interprets as the trend in VAT collection so far this year? Specifically, does the Minister anticipate receipts will realign with projections or could the gap widen as the year progresses? The programme for Government acknowledges the impact of rising energy costs on businesses and households and pledges tax measures such as changes to VAT to help mitigate these pressures. There is also a commitment to support SMEs, particularly in the retail and hospitality sectors, potentially through adjustments in VAT, PRSI and other measures in the coming budget. Will the Minister indicate whether specific VAT measures will be considered in the forthcoming budget, particularly for sectors facing acute cost challenges?
Sentiment score: 0.22
In light of the urgent issues in housing supply, IBEC recently proposed that the Government address apartment construction viability directly by reducing VAT on new-build apartments by 5% and discontinuing development levies on such projects. Its analysis suggests these actions would reduce direct State-imposed costs at a cost of about €86 million, which is less than the shortfall between VAT receipts and the departmental profile. Given the number of apartment completions has reportedly fallen considerably this year to date and IBEC is now arguing for this intervention as consistent with the social imperative for increased housing supply and the VAT directive requirements, is such a targeted VAT reduction or the removal of development levies under consideration by the Government as part of budget deliberations? Does the Minister believe there are alternative tax measures that would better incentivise the construction of much-needed new apartments?
Sentiment score: 0.04
Could the Minister confirm the number of taxpayer units that have made claims for the rent tax credit since its introduction in December 2022? With budget 2025 further increasing the credit to €1,000 for individuals and €2,000 for jointly assessed couples, will the Minister comment on the scale of uptake and effectiveness of this credit in supporting private renters and make a statement on how it fits within the Government's broader strategy to assist those struggling with high rents?
Sentiment score: 0.54
We are all acutely aware of the persistent challenges facing renters. The rent tax credit introduced in budget 2023 at €500 has been a tangible intervention for people grappling with higher rental costs. This credit was subsequently increased to €750 and reached €1,000 for individuals and €2,000 for couples in budget 2025. Since its inception three years ago, it has offered meaningful assistance to many, easing pressure from rising rents and providing relief for thousands of families and individuals. Recognising the programme for Government's commitment to progressively increasing the rent tax credit, will the Minister outline whether additional enhancements are being considered as part of the upcoming budget? Given cost-of-living issues, does he envisage any further increases to the credit or additional targeted measures aimed at supporting renters in the most acute difficulty?
Sentiment score: 0.46
The Minister will probably appreciate that most of the questions he is asked between now and October will be to seek his plans for the upcoming budget. Could he provide an update in the meantime on the overall awareness and uptake of the rent tax credit since its launch? My understanding is that the Department of Finance estimates that around 400,000 renters are eligible to claim this relief. In its initial year, some 250,000 to 270,000 taxpayer units made a claim for the credit. By early 2024, claims across the first two years, 2022 and 2023, exceeded 320,000 taxpayer units, with, I believe, almost €120 million paid out in respect of the year 2022 alone. Given the substantial increase in the value of the credit since then, has there been a commensurate rise in uptake rates and awareness among renters? What measures are being taken to ensure that all those eligible are availing of the support, particularly as the rental market remains under strain?
Sentiment score: 0.49