Minister for Finance Michael McGrath has confirmed that precast concrete is to be excluded from the Defective Concrete Products Levy.
Originally, a small number of precast products were listed as being subject to the levy, with these removed shortly after.
However, manufacturers had been informed that the levy would still apply to ready mix concrete used for the making of precast products such as cattle slats.
Commenting on the matter, Minister McGrath said: “My officials have held a series of meetings with industry bodies where they outlined their concerns about this aspect of the application of the levy.
“It has become clear that the manner in which the levy impacts on the sale of certain precast products has a potentially negative impact on the export of these products and competition from suppliers in to the jurisdiction.”
The Minister confirmed an amendment to the upcoming Finance Bill “to exclude the value of pouring concrete used in precast products from the scope of 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.
“Concrete blocks and pouring concrete for uses other than in precast products will remain within scope of the [levy].”
IFA farm business chair Rose Mary McDonagh felt the change was the correct decision, though she also noted that “farmers should be allowed to reclaim any levy paid on construction work in the same manner as VAT is reclaimed”.