Climate & Environment

Building body calls for 10% VAT increase on 'carbon-hungry’ demolition projects

Chartered Institute of Building says tax system reform is needed to help Ireland meet its net zero targets

CIOB: Industry group has proposed a new tax regime that would see tax on demolition projects rise to the standard rate of 23 per cent while renovation projects remain at 13.5 per cent. Picture: Getty

The government should overhaul Ireland’s “perverse” tax system that encourages demolition over renovation, a Chartered Institute of Building (CIOB) report has said.

The current Irish tax system applies a reduced VAT rate of 13.5 per cent to both demolition and renovation projects. The report from the industry group said tax system reform is needed to help the country meet its net zero targets.

The CIOB has said the system has created a “perverse environment where ...