The Government is to amend legislation to exclude certain precast products from the concrete products levy.
The move follows the raising of concerns by the industry that the levy could impact on the exports of the products and competition from suppliers into the jurisdiction.
The Department of Finance said a limited number of precast products had originally been listed as being within the scope of the levy when it was first announced last year.
"Following further consideration, these were removed prior to the publication of what became Finance Act 2022," said the Minister for Finance, Michael McGrath.
"The legislation provided that while such products would not be within scope of the DCPL, the pouring concrete element which forms a constituent part of precast concrete products is within scope."
Following meetings with industry bodies, at which concerns were outlined about the application of the levy, the minister said it became clear the manner in which the levy impacts on the sale of certain precast products could have a "potentially negative impact on the export of these products and competition from suppliers into the jurisdiction."
As a result the minister said he intends to propose an amendment to the Finance Bill to exclude pouring concrete used in precast products from the levy.
"This will come in to effect on 1 January 2024 and a refund scheme will apply for the interim period to the end of 2023," he stated.
Concrete blocks and pouring concrete for use other than in precast products will continue to fall within the scope of the levy.
The 5% levy was introduced to meet some of the costs of the Government scheme that is designed to assist homeowners whose properties have been damaged as they contain concrete blocks contaminated with mica or pyrite.
It was introduced on September 1st 2023.
"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," said Mr McGrath.
The development has been welcomed by the Irish Cattle and Sheep Farmers' Association (ICSA).
But President Dermot Kelleher said it also highlights the utter insanity of the levy in the first place.
"The 5% concrete levy must be one of the most ill-thought out, farcical policy decisions ever made in a country where we urgently need more houses and where farmers are under pressure to add more slurry storage facilities," said Mr Kelleher.
