MINISTER FOR FINANCE Michael McGrath has announced plans to add an amendment to the bill that deals with the Defective Concrete Products Levy (DCPL), which is designed to provide funding for the Mica Redress Scheme.
The amendment to the Finance Bill 2022 will exclude the value of pouring concrete used in precast products from the scope of the levy.
The Government came under fire for the initial scope of the levy, with Sinn Féin’s spokesperson on finance Pearse Doherty calling it “flawed”.
“This is ultimately a tax on new homes which will push up building costs and house prices,” Doherty said on Friday.
In a statement accompanying the announcement of the amendment, McGrath said:
“My officials have held a series of meetings with industry bodies where they outlined their concerns about this aspect of the application of the levy.
“It has become clear that the manner in which the levy impacts on the sale of certain precast products has a potentially negative impact on the export of these products and competition from suppliers in to the jurisdiction.”
The DCPL came into effect on 1 September this year and it applies at a rate of 5% to pouring concrete and concrete blocks. The amendment is set to kick in on 1 January 2024 and there will be a refund scheme covering the interim up until the end of this year.
“It is my belief that, taking account of the proposed amendment, the overall design of the levy balances the need to ensure some of the costs of the redress scheme are met from a source other than the Exchequer, while limiting the impact on inflation in the construction sector,” the minister said.
McGrath added that his department and Revenue will “closely monitor the introduction and operation of the DCPL and will continue to engage with industry to identify ways to address any issues that arise.”
The Mica Redress Scheme aims to compensate homeowners whose houses have deteriorated due to defective concrete blocks used in their construction. The majority of the effected homes are located in Donegal but there are other cases around the country.
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