THE GOVERNMENT IS coming under fire for the scope of its new concrete levy, which comes into effect today.

Sinn Féin has pointed to past government assurances that the levy would not include pre-cast products but which are now part of the scheme. 

The Cabinet had agreed last year to cut the concrete levy to 5% and said at the time that it would be limited to concrete blocks and pouring concrete, and will no longer apply to pre-cast concrete materials.

It’s expected to raise €32 million over 12 months, under half the €80 million it was originally expected to raise.

The levy will also apply to concrete blocks that are purchased in Northern Ireland.

Sinn Féin’s spokesperson on finance Pearse Doherty has called on Finance Minister Paschal Donohoe to correct the Dáil record regarding the scope of the government’s levy on concrete products.

The Donegal TD said that the minister’s claims that the levy would exclude pre-cast products were causing confusion and uncertainty” in the construction sector and wider industry.

He called on the government to scrap the “flawed” levy, which he said will increase construction costs and house prices.

“This is ultimately a tax on new homes which will push up building costs and house prices,” Doherty said.

“In October Minister Paschal Donohoe made repeated claims that the levy excluded precast products – from blocks and paving to lintels and posts.

“These claims were false.

“It was clear as soon as the Finance Bill was published that this was not the case, and that poured concrete, a key element of precast products, would be subject to the levy.

“I raised this directly with Department officials at the Finance Committee on the 26th October.

“This has led to confusion within the construction sector and among wider industry, with the levy now to take effect in the coming days.”