VAT
The temporary reduction in the VAT rate for the hospitality and tourism sector to 9% will end on 28 February 2023.
The temporary reduction in the VAT rate for electricity and gas to 9% will end on 28 February 2023.
The 9% VAT rate on the below products will be reduced to 0% from 1 January 2023:
Newspapers
Defibrillators
Hormone replacement and nicotine replacement therapies
Farmers’ flat rate addition to decrease from 5.5% to 5.0% from 1 January 2023.
Farming reliefs
The Young Trained Farmer and Farm Consolidation stamp duty reliefs and the Farm Restructuring CGT relief have been extended to 31 December 2025.
The Young Trained Farmer and Registered Farm Partnership stock reliefs have been extended to 31 December 2024.
A three-year accelerated capital allowance scheme for the construction of modern slurry storage facilities has been introduced so that 50% of expenditure is claimed over two years.
Vacant homes tax
A vacant homes tax is being introduced. This will apply to properties that are occupied for less than 30 days in a 12-month period and will be applied at a rate of three times the standard LPT rate payable on that property.
Residential zoned land tax
Last year’s Budget introduced a residential zoned land tax at a rate of 3% of the market value of land within its scope, being land that on or after 1 January 2022 is zoned as being suitable for residential development and is serviced. Each local authority is to prepare and publish a map identifying land within the scope of the tax. The Minister today confirmed that the first such draft maps will be published on 1 November 2022, following which any person will have the opportunity to apply to their local authority to have the zoning status of their land amended as part of a variation process. The Minister also confirmed that he will bring forward a number of amendments in Finance Bill 2022 to streamline the operation of the tax and ensure it is efficiently administered.
Residential development stamp duty
The stamp duty refund scheme is extended by three years to the end of 2025.
Carbon tax
In line with the trajectory set out in Finance Act 2020, the rate of carbon tax for petrol and diesel will increase from €41 to €48.50 per tonne. However, the National Oil Reserves Agency (NORA) levy is being reduced from 2c per litre to zero, which will have the effect of cancelling out the increase in the carbon tax on these products.
Excise duties
The temporary reductions in excise on petrol, diesel and marked gas oil introduced in March 2022 are being extended until 28 February 2023, as is the temporary reduction in the rate of VAT on electricity and gas.
Excise duty on a packet of 20 cigarettes is being increased by 50c with a pro-rata increase on other tobacco products.
Bank levy
The bank levy introduced in 2013 was to have expired at the end of 2022 but has been extended for another year. Its future will also be considered following publication of the report of the Retail Banking Review.
Night-time economy
The excise fees for a Special Exemption Order, which late night venues require to open, is being halved from €110 to €55. The Minister also confirmed that longer-term reforms will be announced in this area when the General Scheme of the Sale of Alcohol Bill is published in the next few weeks.