TD calls for civil servants to be 'reined in' over changes to concrete levy
Finance Minister Michael McGrath confirmed yesterday that the levy would take into account the ready-mix used in precast concrete.
There have been calls for civil servants to be “reined in” after precast concrete ready-mix was confirmed to be included within the Government’s new concrete levy.
The controversial levy on concrete products was initially announced as part of Budget 2023, but following a significant backlash from Government backbenchers and industry representatives, the tax was delayed and reduced from 10% to 5%.
There had previously been assurances from the then-finance minister Paschal Donohoe that precast concrete would be completely excluded from the levy.
In a statement last October, Mr Donohoe said: “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.”
However, Finance Minister Michael McGrath confirmed yesterday that the levy would take into account the ready-mix used in precast concrete.
According to the Society of Chartered Surveyors, the levy is expected to add an additional €1,200 to the cost of a new three-bed house.
The tax itself was brought forward as part of efforts to pay for the multi-billion mica redress scheme.
Independent TD Seán Canney, who has been critical of the tax since its announcement, told the that he did not blame either Mr Donohoe or Mr McGrath for the inclusion of precast concrete ready-mix within the levy.
Mr Canney said that officials within Revenue had taken a different interpretation of the levy rules compared to the Government.
“There has been a different interpretation by officials and I think that they need to be reined in on this,” Mr Canney said.
Mr Canney said that he was confident that Mr McGrath would be able to “put the brakes” on the matter and described it as an “anomaly”.
Fianna Fáil backbencher John Lahart had also raised concerns about the inclusion of precast concrete ready-mix, with the Dublin South-West TD writing to Mr McGrath over the matter.
In his letter, Mr Lahart raised concern about the potential impact of the levy on the competitiveness of the construction industry internationally.
In particular, he said that precast manufacturers in Northern Ireland will have a competitive advantage compared to manufacturers in this State.
Asked whether or not the Government had reneged on its previous commitments to exclude precast concrete, Mr McGrath said that Revenue was interpreting the legislation as it had been passed.
“So, the intention of the legislation was that the added value element of the precast 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 are duty-bound to implement the law as it currently stands.”
Mr McGrath added that he would be monitoring the impact of the levy when it comes into effect on Friday.
Construction Industry Federation director general Hubert Fitzpatrick said that the levy would add "further viability challenges" and increase the costs of construction.
