245. Deputy Grace Boland asked the Tánaiste and Minister for Finance further to the commitment in the programme for Government to progress the recommendations of the Funds Sector 2030 review to support greater retail participation in capital markets, whether his Department has assessed the recommendation to remove the eight-year deemed disposal rule applicable to exchange-traded funds and other investment funds; the estimated cost to the Exchequer of abolishing this rule; whether the Government intends to remove the deemed disposal provision; the timeline for any such reform; and if he will make a statement on the matter. [25770/26]

Sentiment score: 0.30

The Funds Sector 2030 review recognised that exchange-traded funds, ETFs, sit at the centre of Ireland's ambition to increase retail participation in capital markets - people who are planning for the future and parents who are planning for their children's college education. The current tax framework, in particular the eight-year deemed disposal rule, is a material barrier to that objective. Could the Tánaiste confirm if his Department has assessed abolishing the rule, what the estimated cost to the Exchequer would be, and when he might make a decision on it?

Sentiment score: 0.06

I thank the Tánaiste. I very much welcome that update. It is good to hear that the roadmap will be published in advance of the budget, though it is disappointing to note that the Revenue Commissioners cannot actually track the amount of revenue to the Exchequer. On the issue of removal, the reality is that under the current regime, a retail investor in an ETF faces a much higher tax rate and earlier taxation and cannot offset losses compared with someone investing directly in shares. Low-risk, diversified investing is taxed earlier and more heavily than speculative stock picking. Therefore, we really need to do something for parents who are looking to the future and those who weathered really bad times in the 1970s and 1980s and know how important it is to put money away for a rainy day but who are seeing the value of their savings eroded through inflation and very low deposit rates.

Sentiment score: 0.20

I appreciate the Minister's comments. I look forward to seeing the roadmap and having discussions in the House on it. I thank the Minister.

Sentiment score: 0.25