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5% concrete levy comes into effect from today

Last October, the Government had agreed that the concrete levy announced in the Budget would be cut to 5% rather than 10%
Last October, the Government had agreed that the concrete levy announced in the Budget would be cut to 5% rather than 10%

A concrete levy announced in the Budget last year comes into effect from today.

Last October, the Government had agreed that the levy announced in the Budget would be cut to 5% rather than 10%.

The levy was also originally meant to be introduced in April.

The Government said it is to help pay for the Mica redress scheme, where buildings, mostly in the north west, are falling apart because of faulty blocks.

There had been assurances that some concrete products would be exempt, but all are now subject to the levy.

Senior Policy Executive for Farm Business and Renewables with the IFA Karol Kissane said the levy would apply to all ready mix, all concrete blocks and as they recently discovered all precast concrete products.

He added that it was an odd move by the Government as "we are at a time of stubbornly high inflation costs, especially in construction".

Speaking on RTÉ's Morning Ireland, Mr Kissane said: "It seems like an odd timing for the Government to be actually implementing a further increase on costs on hard-pressed not only farmers but also, say the general public, and those who even have to think about maybe buying houses or renovating or doing any work that involves concrete into the future."

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He acknowledged the levy had been postponed but said after the Budget they were told if implemented it would not apply to precast concrete products.

However, when Revenue revealed how the levy would be charged, it announced the concrete used to make precast products would be subjected to the levy.

Mr Kissane said: "So, therefore, it now applies across all concrete products."

He said a recent KPMG study found a typical silage pit for a farmer which indicated that the 5% levy would add €1,000 to the cost.

Mr Kissane added: "If you look back over maybe the last two to three years concrete in general has probably gone up about 50% in price, with what has been delivered to farms, so another 5% added on to that is really making concrete products expensive for farms."

Minister for Finance Michael McGrath said on Tuesday that "the intention of the legislation is that the added value element of the precast would be exempt but that the ready-mix component of it would be subject to the levy".

Mr Kissane said last year's announcement did not make this clear when they were told all "precast concrete products would be exempt".

He said they have requested a meeting with Mr McGrath to discuss the matter further.