The Minister for Finance, Paschal Donohoe TD has today (Tuesday) announced changes to the Defective Concrete Products Levy and the Rental Tax Credit as previously announced on Budget Day.
Defective Concrete Products Levy:
A new levy on certain forms of concrete/concrete products is being provided for in Finance Bill 2022, as was announced by Minister Donohoe in his Budget 2023 speech.
The introduction of the Defective Concrete Products Levy arises from a Government decision of November 2021 that a levy should be imposed on the construction sector to contribute towards meeting the substantial cost of the Mica Redress Scheme.
Following the announcement of the levy on Budget day, and in light of subsequent feedback from industry participants and others, the Minister has determined that the rate at which the levy will apply will now be set at 5%, and will come into effect on 1st September 2023 so as to allow more time for all stakeholders to prepare for its introduction.
The Minister has also decided to remove pre-cast concrete products from the scope of the levy. Finance Bill 2022 provides for its application to only pouring concrete (aka ready-mix) and concrete blocks under two harmonised EU standards.
The levy remains unchanged in all other respects.
Rental Tax Credit
The Minister for Finance has decided to extend the rental tax credit of €500 to parents of third level students whereby they pay their child’s rent and the student is in a tenancy registered with the Residential Tenancies Board.
Speaking today, Minister Donohoe said:
“I have listened to concerns regarding the design and scope of the Defective Concrete Product Levy, and the changes I am announcing today get the balance right between reducing the levy’s impact while also ensuring consistency with the Government decision on the Mica Redress Scheme.
I acknowledge the value of Ireland’s pre-cast concrete sector, and therefore I have removed pre-cast concrete products from the scope of this levy.
With regards to the rental tax credit, having reflected on the situation where a parent pays the rent for their child attending third level education, I have decided to extend the application of the tax credit to such parents. This will provide further help towards the cost of third level education and builds on the measures announced in Budget 2023 for the higher education sector.”
ENDS