The Minister for Finance Paschal Donohoe has today (Tuesday, October 18) confirmed that the concrete block levy is to be halved to 5% and its introduction delayed by several months.
The controversial measure unveiled in Budget 2023 followed a government decision last November that a charge should be imposed on the construction sector to contribute towards meeting the substantial cost of the mica redress scheme.
The proposed 10% levy on concrete and concrete products, which had been earmarked for introduction on April 3, 2023, was expected to raise €80 million annually.
The measure was met with fierce criticism from farming groups, the construction sector and opposition politicians.
Today, Minister Donohoe said that “in light of subsequent feedback from industry participants and others” he has decided to reduce the levy to 5% and postpone its introduction until September 1, 2023.
He said that this is “to allow more time for all stakeholders to prepare for its introduction”.
As part of the climb down, the minister has also decided to remove pre-cast concrete products from the scope of the levy.
He said that the Finance Bill 2022 will apply the levy to pouring concrete or “ready-mix” and concrete blocks “under two harmonised EU standards”.
“The levy remains unchanged in all other respects,” Minister Donohoe said.
“I have listened to concerns regarding the design and scope of the Defective Concrete Product Levy, and the changes I am announcing today get the balance right between reducing the levy’s impact while also ensuring consistency with the government decision on the Mica Redress Scheme.
“I acknowledge the value of Ireland’s pre-cast concrete sector, and therefore I have removed pre-cast concrete products from the scope of this levy,” the minister said.