Labour Tables Finance Bill Amendments on Sharia Finance & Tobin Tax
March 8, 2010
Deputy Joan Burton has submitted a series of report stage amendments which would require the Minister for Finance to prepare and publicise reports on important policy areas. Chief among these are the setting cost and legacy costs of tax breaks. She has also tabled an amendment which would see so-called ‘head shops’ having to obtain and pay for licences similar to an off-licence.
Debate on the Finance Bill will continue in the Dail this coming week.
Sharia Compliant Finance
Requiring so-called ‘head shops’ to obtain and pay for a licence, similar to an off-licence, might not be a perfect solution, but it would bring a measure of much-needed regulation to the sector and could even raise some money for the taxman.
The 2010 Finance Bill is set to bring Sharia Compliant Finance to the island of Ireland for the first time. These measures are aimed primarily at the IFSC and global finance. Many Muslims are interested in financial products, such as home loans, which comply with Sharia law which does not, for example, accept usury.
Because the whole area of Sharia Finance is quite complex, I am asking that the Minister for Finance to prepare a detailed report on it, including the all-important resolution mechanisms to be undertaken in the event of disputes or misunderstandings arising from its implementation. This is just common sense.
Tobin Tax
Since the 1970’s, there have been proposals for a small tax on speculative financial transactions, the so-called ‘Tobin Tax’, which takes its name from the Nobel Laureate who first proposed it.
In light of the global financial crisis, and the unprecedented state financial support for the banks, this proposal has been gaining currency with European leaders of late, notably Gordon Brown. I have asked the Minister to prepare a report on the possible implementation of such a charge at EU or global level in cooperation, and specifically its likely effects on activity, employment and tax revenues in the International Financial Services Sector.
Head Shops
Since the government will not agree to an outright ban of head shops, we are asking the Minister for Finance to consider making the shops apply for and pay for a licence, issued by the Revenue Commissioners, similar to the arrangements for off-licences.
Tax Breaks
There has been a tendency in the past decade for successive Ministers for Finance to announce and implement tax incentives, as with car parks or hotels, without any idea about how much they will cost in terms of tax revenue foregone or their broader economic impact despite repeated promises from the Minister for Finance and his predecessors.
The latest figures we have for property related tax reliefs is €435m, and even now the Minister is not able to calculate the massive legacy costs involved. The hotel tax incentives are a prime example of developer-led tax breaks which backfired catastrophically.
We now have zombie hotels all over the country which were built by investors purely to avail of tax breaks. Unbalanced tax breaks for private hospitals are also contributing to difficulties in that sector, and we could be looking forward to a future of private ‘zombie hospitals’.
In the report stage of this year’s Finance Bill I am tabling a common-sense amendment which would oblige the Minister to prepare a cost-benefit analysis for all tax breaks provided for in this year’s Finance Bill, setting out the costs of tax foregone, and the benefits in terms of job creation or otherwise and any legacy costs. This should be happening as a matter of course.
Debate on the Finance Bill will continue in the Dail this coming week.
Sharia Compliant Finance
Requiring so-called ‘head shops’ to obtain and pay for a licence, similar to an off-licence, might not be a perfect solution, but it would bring a measure of much-needed regulation to the sector and could even raise some money for the taxman.
The 2010 Finance Bill is set to bring Sharia Compliant Finance to the island of Ireland for the first time. These measures are aimed primarily at the IFSC and global finance. Many Muslims are interested in financial products, such as home loans, which comply with Sharia law which does not, for example, accept usury.
Because the whole area of Sharia Finance is quite complex, I am asking that the Minister for Finance to prepare a detailed report on it, including the all-important resolution mechanisms to be undertaken in the event of disputes or misunderstandings arising from its implementation. This is just common sense.
Tobin Tax
Since the 1970’s, there have been proposals for a small tax on speculative financial transactions, the so-called ‘Tobin Tax’, which takes its name from the Nobel Laureate who first proposed it.
In light of the global financial crisis, and the unprecedented state financial support for the banks, this proposal has been gaining currency with European leaders of late, notably Gordon Brown. I have asked the Minister to prepare a report on the possible implementation of such a charge at EU or global level in cooperation, and specifically its likely effects on activity, employment and tax revenues in the International Financial Services Sector.
Head Shops
Since the government will not agree to an outright ban of head shops, we are asking the Minister for Finance to consider making the shops apply for and pay for a licence, issued by the Revenue Commissioners, similar to the arrangements for off-licences.
Tax Breaks
There has been a tendency in the past decade for successive Ministers for Finance to announce and implement tax incentives, as with car parks or hotels, without any idea about how much they will cost in terms of tax revenue foregone or their broader economic impact despite repeated promises from the Minister for Finance and his predecessors.
The latest figures we have for property related tax reliefs is €435m, and even now the Minister is not able to calculate the massive legacy costs involved. The hotel tax incentives are a prime example of developer-led tax breaks which backfired catastrophically.
We now have zombie hotels all over the country which were built by investors purely to avail of tax breaks. Unbalanced tax breaks for private hospitals are also contributing to difficulties in that sector, and we could be looking forward to a future of private ‘zombie hospitals’.
In the report stage of this year’s Finance Bill I am tabling a common-sense amendment which would oblige the Minister to prepare a cost-benefit analysis for all tax breaks provided for in this year’s Finance Bill, setting out the costs of tax foregone, and the benefits in terms of job creation or otherwise and any legacy costs. This should be happening as a matter of course.