Congestion charges would be more “efficient” and “equitable” in achieving environmental goals than a car parking levy, the Department of Finance has argued in its annual batch of papers aimed at informing budgetary policy.
Finance officials have recommended that the Government does not implement a car parking levy at present after a review of its potential impact against various alternative approaches to achieve reductions in emissions in the Tax Strategy Group (TSG) papers.
However, officials have raised the prospect of making it mandatory for anyone receiving an inheritance or a substantial gift over the value of €3,000 to report the details to the Revenue Commissioners as the Government looks to strengthen the State’s inheritance tax system.
A paper put together by the group also said raising the parent-to-child tax-free threshold of €335,000 to €350,000 would cost the exchequer €15 million while raising it to €400,000 would cost €52 million.
The Tax Strategy Group also noted that the top 10 per cent of income earners in Ireland (those earning more than €102,000) would account for almost two-thirds of the income tax and universal social charge collected this year.
Separately, briefing material prepared for Jack Chambers on his appointment as Minister for Finance last month warned that recent industrial policy developments could threaten Ireland’s economic competitiveness, in several key sectors.
Department of Finance officials said small open economies were unlikely to benefit from looser state aid rules within the EU, with larger member states having far more spending power for subsidising manufacturers.
“This creates the risk of large multinational companies choosing to locate operations in EU countries offering the most financial support, bypassing Ireland but with continued access to the Single Market,” they wrote.
The documents also note that the hospitality sector saw a business failure rate three times worse than any other sector in the first quarter of 2024.
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