The Irish Concrete Federation (ICF) has said it is ready to work “constructively” with the Minister for Finance on the 5% concrete levy, which was implemented today (Friday, September 1).
The federation continues to have “grave concerns” over the levy, but in recent days has tabled a “series of proposed measures” that it believes could assist with compliance across the industry.
It said that given the “relatively short timeframe” and “significant lack of awareness” over the levy, that the submission would give concrete product manufacturers and private individuals opportunity to “conform” to the legislative requirements.
The introduction of the Defective Concrete Products Levy (DCPL) arises from a government decision in November 2021, that a levy should be imposed on the construction sector to contribute towards meeting the substantial cost of the Mica Redress Scheme.
The levy was first introduced at 10%, but in light of feedback was reduced to 5%. The levy was also originally meant to be introduced in April, but was delayed due to feedback.
Concrete levy including precast
Concerns have been raised by TDs and lobby groups over the levy’s inclusion of precast products.
According to the Department of Finance, precast products had originally been listed as being within scope of the levy when the budget was announced.
Following “further consideration” these were removed prior to the publication of what became Finance Act 2022.
In a statement to Agriland, the department said: “While such products are not within scope of the DCPL, as noted above, the pouring concrete element which forms a constituent part of precast concrete products is within scope.
“The department has been in communication with the concrete sector and wider construction industry in regard to the DCPL and will continue to consider the points raised by them as part of those interactions.”
ICF has submitted a proposed solution for consideration by the Department of Finance to address the unexpected inclusion of precast concrete products within the scope of the DCPL.
The federation stated that the proposal would “protect domestic Irish precast manufacturers from unfair competition from ‘levy-free’ imports as well as reducing the inflationary impact of the levy on Irish construction.”
It said that the public could be liable to interest and penalties, due to “lack of awareness” associated with the DCPL.
Revenue has advised farmers and agri-contractors that they should be aware that if they import certain concrete products and do not pay the new concrete levy on, or before, the due date, it will be subject to interest on a daily basis.
According to Revenue a number of penalty charges may also apply in relation to the DCPL if the chargeable person fails to meet all of the requirements of the new levy from a €500 to €3,000 fine for failing to keep proper documentation.