Minister for Finance Simon Harris has again ruled out any move to abolish stamp duty for first-time home buyers in Budget 2027. His remarks appeared to contradict the Taoiseach, who said in Manchester on Friday that the measure was still “on the table”.
Speaking after the Ecofin meeting of EU finance ministers at Dublin Castle on Saturday, Harris said: “I’m not intending to bring forward proposals in relation to stamp duty and that’s not news to colleagues across the Coalition.”
He said his department was against any change in the area, believing it “is not a good idea”, and that while there will be measures intended to address the ongoing housing crisis, they will, he said, be focused on boosting supply.
He also suggested funding for any cut to stamp duty would not be available as most of the €1.5 billion earmarked for tax cuts is set to go on the promised packages of personal taxation bands and increases to credits.
Asked about potential measures to address the affordability of fuel, and in particular home-heating oil, the Minister said a change to the rate of VAT involved was unlikely. Expanding on this, he said he has very limited scope to cut the tax on heating oil and so “the benefit of a reduction in VAT would be very limited for people in relation to home-heating oil and the cost would be very significant”.
However, “energy costs and the cost of filling a home-heating tank is a big concern for Government”, he added. With this in mind, he is looking at the carbon tax as it applies to kerosene and increases to fuel allowance which would impact a quarter of households.
The recent Tax Strategy Group report had, he said, allowed for the possibility of “treating some products differently” with regard to carbon tax, and this is being taken into consideration.
The reduced rate of excise duty on fuel, initially introduced after nationwide protest by farmers, haulier and others earlier this year, is due to expire on November 1st. Harris hinted at another extension of the measures, observing that October 6th, the day of Budget 2027, would present “a chance to take stock”.
On the early education sector, he said the Government remains committed to the Programme for Government, which aims to substantially improve affordability for parents.
“I think it’s one of those the Government thinks we can really structurally fix and build a childcare system that is fit for purpose,” he said. The Minister indicated that moves were likely to come this year in the form of increases to National Childcare Scheme payments and, potentially, reductions in fee caps. Such a measure would require funding increases to operators under the Core Funding scheme.