Minister for Finance Michael McGrath has confirmed that pouring concrete used for precast products will be excluded from the defective concrete products levy. Any amounts paid under the 5 per cent charge for these products will be refunded.
The levy on certain concrete products was announced in October 2022 as part of Budget 2023. It is designed to secure a construction sector contribution towards the cost of the Mica Redress Scheme and came into effect last Friday, September 1st.
A number of precast products originally listed as being within scope of the 5 per cent levy were removed before the publication of the Finance Act 2022. Instead, it provided that pouring concrete used to produce precast concrete products would come under the scope of the levy.
Mr McGrath announced on Wednesday that he will bring forward an amendment in the forthcoming Finance Bill to exclude the value of pouring concrete used in precast products from the levy.
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Following a series of meetings with concerned industry bodies, the Minister said, “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 into the jurisdiction”.
The amendment will come into effect on January 1st next, and a refund scheme will apply for the interim period to the end of 2023.
Concrete blocks and pouring concrete for use other than in precast products will remain within scope of the levy.
“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,” Mr McGrath said.
“The Department of Finance will, with Revenue’s assistance, closely monitor the introduction and operation of the levy and will continue to engage with industry to identify ways to address any issues that arise.”
The first filing date for returns in respect of the levy is January 23rd, 2024.
