McGrath confirms pre-cast concrete will be included in levy
Minister for Finance Michael McGrath said he would be monitoring the impact of the levy when it comes into effect this Friday. Photo: Sam Boal / RollingNews.ie
Finance Minister Michael McGrath has confirmed that pre-cast concrete ready-mix will be included in the incoming concrete levy.
Mr McGrath was asked on Tuesday whether or not the Government had gone back on its promise to exclude pre-cast concrete products from the levy. In response, he said that Revenue was interpreting the legislation to include the ready-mix element of pre-cast concrete.
“The Revenue Commissioners are interpreting the legislation as enacted by the Oireachtas,” Mr McGrath said.
“So, the intention of the legislation was that the added value element of the pre-cast would be exempt but that the ready-mix component of it is subject to the levy and so that’s the basis of the Revenue’s interpretation and they will be ensuring that the levy is applied in accordance with the law.
“They have no option in that regard… That’s the current legal position and the Revenue Commissioners is duty-bound to implement the law as it currently stands.”
The Finance Minister admitted that the levy would increase costs across the construction industry, some of which are likely to be passed on to consumers. However, he said there needs to be a plan in place to fund the mica redress scheme.
Mr McGrath said he would be monitoring the impact of the levy when it comes into effect this Friday. The levy itself is set to add 5% to the open market value of concrete products, with the Society of Chartered Surveyors (SCSI) estimating it will add €1,200 to the cost of a new three-bed house.
While it was initially announced as part of Budget 2023 as a measure to fund the Enhanced Defective Concrete Blocks Scheme, the new tax faced significant backlash from within the Government over concerns it could add to the cost of building new homes.
The backlash eventually led to a delay in the implementation of the levy, as well as it being cut from 10% to 5%.
Concerns have been raised by Government backbenchers over the inclusion of pre-cast ready-mix within the levy, with Fianna Fáil TD John Lahart writing to Mr McGrath over the matter.
In the letter, he expresses concerns about the potential impact on the construction industry’s competitiveness internationally. In particular, he said that pre-cast manufacturers in Northern Ireland will have a competitive advantage.
