In a recent development, Minister for Finance Michael McGrath has announced a significant amendment to the Defective Concrete Products Levy, which has garnered much attention since its introduction as part of Budget 2023. This amendment is set to have a positive impact on the precast concrete industry, and O’Reilly Concrete is pleased to share this important news with our customers.
Background
The Defective Concrete Products Levy was initially introduced in October 2022, as part of a broader initiative to fund the Mica Redress Scheme. It marked a historic move to secure contributions from the construction sector toward rectifying issues related to defective concrete products. The levy came into effect on September 1st, 2023, raising questions and concerns within the industry.
Initially, a range of precast concrete products were included in the levy’s scope. However, following careful consideration and consultations with industry experts, Minister McGrath has taken proactive steps to address these concerns and maintain a balanced approach.
Exclusion of Precast Concrete Pouring
In a welcome move for the precast concrete industry, Minister McGrath has confirmed that pouring concrete used for precast products will be excluded from the Defective Concrete Products Levy. This exclusion aligns with industry feedback and recognises the potential negative impact the levy could have had on the export of precast products and competition within the jurisdiction.
The amendment to the levy will officially take effect on January 1st, 2024. In the meantime, a refund scheme will be in place for the interim period until the end of 2023. This change means that concrete blocks and pouring concrete for uses other than in precast products will remain within the scope of the levy.
Minister McGrath expressed his belief that this amendment strikes a balance between funding the Mica Redress Scheme and minimizing the impact on inflation in the construction sector. The Department of Finance, in collaboration with Revenue, will closely monitor the introduction and operation of the levy and will continue to engage with industry stakeholders to address any issues that may arise.
Important Dates
The first filing date for returns related to the Defective Concrete Products Levy is January 23rd, 2024. This date should be noted by all relevant parties to ensure compliance with the new regulations.
Conclusion
O’Reilly Concrete welcomes the decision to exclude pouring concrete used for precast products from the Defective Concrete Products Levy. This amendment demonstrates the government’s willingness to listen to industry concerns and take necessary action to ensure the continued growth and success of the precast concrete sector.
We are committed to keeping our customers and partners informed about important developments in our industry. If you have any questions or require further information about how this amendment affects your business, please do not hesitate to contact us. Together, we can navigate these changes and build a stronger, more sustainable future for the construction sector in Ireland.
For further reading see – https://www.irishtimes.com/business/economy/2023/09/06/minister-agrees-to-limit-scope-of-defective-concrete-products-levy/
