280. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance further to Parliamentary Question No. 231 of June 2026, the original projected cost of the VAT reduction on apartments for the year 2027. [54685/26]

281. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance the estimated cost of the VAT reduction on apartments for 2026. [54686/26]

I propose to take Question No 280 and Question No 281 together.

In Budget 2026, the VAT charged on the construction and sale of newly completed apartments was reduced to 9% from 13.5% until 31 December 2030.

At that time the cost of the measure for 2026 was tentatively estimated at approximately €250 million in forgone VAT revenue. It was also tentatively estimated that the cost of this measure for 2027 would be €270 million in forgone VAT revenue.

As regards current estimates, I am advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns.

Therefore, it is not possible to provide an estimate of the cost of reducing the VAT on new apartments using taxpayer information alone.

However, using Revenue and third-party data sources, the full year cost of reducing VAT on new apartments from 13.5% to 9% is tentatively estimated at €236 million in 2026.

Revenue plans to publish revised estimates in Q3 2026, in line with the publication schedule for its Ready Reckoner. The full year cost for 2027 for this measure is therefore subject to further review. The Ready Reckoner is updated twice a year and enables calculation of the cost or yield arising from a range of potential changes to tax charges. It is available on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx.