Tax group recommends no drop in construction Vat, warns about falling motor tax take 

Ahead of Budget 2024, the Tax Strategy Group examined the argument for reducing the vat rate on construction materials from 13.5% to 9%, but advised these costs could then be passed onto the consumer.  Picture: Andrew Matthews/PA

Cutting Vat on the construction sector could cost the taxpayer €580m and would likely result in a spike in house prices, the Government’s tax advisors have warned.

Ahead of Budget 2024, the Tax Strategy Group (TSG) examined the argument for reducing the vat rate on construction materials from 13.5% to 9%, but advised these costs could then be passed onto the consumer.