Minister for Finance Michael McGrath has confirmed that the value of the pouring concrete element for precast products will be excluded from the Defective Concrete Products Levy (DCPL).
This morning (Wednesday, September 6) the minister announced his intention to bring forward a legislative amendment in the upcoming Finance Bill to deal with how the levy impacts on the sale of certain precast products.
DCPL is intended to ensure a contribution by the construction sector towards the cost of the Mica Redress Scheme.
A limited number of precast products had originally been listed as being within scope of the levy when it was announced in October 2022.
Following further consideration, these precast products were removed prior to the publication of what became the Finance Act 2022. However, the pouring concrete element which forms a constituent of these products remained within the scope of the levy.
But in the latest developments today, the minister 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,” he added.
“It is my intention to bring forward an amendment in the upcoming Finance Bill to exclude the value of pouring concrete used in precast products from the scope of the levy.”
The minister said that this change will come into effect from January 1, 2024.
A refund scheme will apply for the rest of this year for levies paid before January 1 on pouring concrete for precast products.
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 into account the proposed amendment, the overall design of the levy balances the need to ensure some of the costs of the recovery scheme are met from a source other than the exchequer, while limiting the impact on inflation in the construction sector.”
Minister McGrath added: “The Department of Finance will, with Revenue’s assistance, 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.”