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Dublin: 10 °C Saturday 25 May, 2013

Property Tax introduction report ‘will be considered by Govt in due course’

Recent updates to Ireland’s Memorandum of Understanding have shown plans to introduce the tax in Budget 2013.

Image: Imag via Creative Commons

THE DEPARTMENT OF Finance has said that an interdepartmental group’s report on the introduction of a property tax to replace the household charge is currently with the Minister for the Environment Phil Hogan.

The group was set up early this year to consider proposals for a property tax.

Recent updates on Ireland’s Memorandum of Understanding – the document which outlines the conditions for the state’s bailout loan with the European Commission, IMF and ECB – have shown that the government plans to introduce the property tax in Budget 2013.

A spokesperson for the Department of Finance said today that the “report on the introduction of a progressive and fair property tax to replace the household charge is with the Minister for Environment”.

“The recommendation will be considered by Government in due course,” the statement added.

“There is no new information or details contained in the EU/IMF documents published on Friday regarding Budget 2013 and the documents mirror the previous Programme documents published in May. The only decision that has been taken by Government regarding the property tax is that it will be administered by the Revenue Commissioners.”

Ministers Leo Varadkar and Pat Rabbit told RTÉ today that no decision had been made at government level on how the tax would be levied. They said that a ‘value-based tax’ did not necessarily mean the value of the property, but could mean the value of the site.

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Comments (72 Comments)

  • I hate the way they leak this stuff in advance and then it’s either implemented or slight variation of the proposal is rolled out in the budget. I am really sick of this government FG are doing whatever they please and Labour are basically impotent in government with no real power in the decision making process!

    Reply
    • Ryan'O 26/08/12 #

      I couldn’t agree more, the incompetence is on par with the infamous five point plan. Who’s your sexy Taoiseach….Edna kinny for ex EU puppet!! Plonkers the lot of them!

      Reply
  • If it’s based on market value, then I should expect to pay nothing. An apartment in my complex has been on the market for over 4 years now without a sniff of a buyer. If there is no market for my apartment, then it’s worthless. A tax on zero = zero.

    Reply
    • Property taxes will be abolished if the opposition win the next election.

      Adams for Taoiseach 2012

      Reply
    • Will they bollocks! The Shinners support rates(property tax) in NI. It’s what pays their wages and expenses! Shutting down schools helps too.

      Reply
    • Tim, stick a 4×2 in it would ya!

      Reply
    • Daisy,

      SF do NOT support local rates. They support higher taxes on the mega-rich who can afford to pay their fair share. They also support an end to the tax breaks on corporations. We need taxes on dividends, higher capital gains taxes and a graduated increase in corporation tax whilst implementing structural reforms. Also consider the tax loopholes which are starving billions of Euros from the Irish state e.g. the double Irish arrangement tax loophole. Bono and Facebook use this to avoid any tax liabilities to Ireland. You’re happy with that?

      Reply
  • Do what you want Phil but if you introduce it forget about the mortgage being paid in full, a full belly comes first.

    Reply
  • A thousand a year per household :( I hope not . .

    Reply
    • People who vote for FG/FF/LAB are idiots. Tax breaks given to corporations and wealthy businesses have starved the government €15 billion. FG recently allowed wealthy people with €500K immigration status to live in Ireland. This is the most unethical way of attracting sustainable jobs. Yet some people still aspire this failed legacy of Fianna Fail.

      I will be voting for SF in the next election. Property taxes will be repealed once FG are voted out of office.

      Reply
    • Sure they will Tim. Just keep on believing…

      Reply
    • Ryan'O 26/08/12 #

      Tim, I am an ex FG voter!!!! Sick to my stomach that I believed their lies, half truths, mistruths or political shite! I will never vote FG again……EVER. You lost yet chance Edna

      Reply
    • Well good for you Tim, I’d rather vote for Humpty Dumpty.

      Reply
    • Ryan,

      It starts with people’s willingness to change their voting habits. I regularly hear “what’s the alternative”. It’s simple: Sinn Fein, Socialists or Independents. Otherwise, we will continue the downward trajectory under FG and FF. The tax breaks on the wealthy corporations and millionaires have never created jobs – they have starved the country of revenue. Under FF and FG, government workers have been given continued pay increments despite the €20 bn deficit.

      Reply
  • People do not have the money to pay mortgages or bill. This is a joke.

    Reply
  • My home is not for sale. Therefore it has no market value.

    Reply
  • This is an attack on the Family home, it’s not an un-necessary luxury! Like a Yacht or a Ferrari, its a place for to raise your family, live/eat/sleep and maybe be secure in at night. This is going too far, either everyone pays or none at all and no exemptions! Time to make FG/Labour/FF, feel our anger and the back of our hand!

    Reply
  • The reality is, most people will be paying at least 1-2k a year, that’s the same as 1.5 – 2% rise in interest rates. Where the hell are people supposed to magic the money from. Shame on anyone who has registered, it’s a pity the people won’t stand together and refuse to pay this tax.

    Reply
  • Of course it will be value based you stupid people. I have not paid. I cannot afford to pay. And that is the truth.

    Reply
    • Ms Yew,

      You are not alone. The truth is that a property tax is an unethical way of raising revenue while the government continues to overpay government workers and offer low taxes on the rich.

      Reply
  • If they bring it in please be a fair tax that everyone must pay ,,, weather your on the dole, renting just like the uk it’s seen fair the way they do it . But I’m sure the fools running this place will screw it up

    Reply
    • There is no such thing as a “fair tax” – you are the mercy of a corrupt government who’ll squander it on their expenses and bloated salaries. You’re happy with that?

      Also, the tax breaks given to the wealthy and corporations are contributing to our structural deficit. It is estimated these tax breaks amount to €15 billion. Even Mitt Romney uses Ireland as a tax shelter.

      Reply
  • FG and Labour are in for a kicking, when things turn sour! Sli-Nios-Fearr, will be a new party and new ideas! Get rid of the old parties of the last century, FF/FG/Labour/Sinn Fein/Socialists are out of touch and past their sell by date! Its time for fresh ideas, fresh thinking and new politics!

    Reply
  • Look the Irish majority are sheep. And the govt. knows this. Just look how many people rolled out to pass a treaty because they were told to and how many registered and payed the household charge because they were told to. They will bring it in and we will pay it fact. It’s just one more thing to moan about. Baaaaa!

    Reply
    • The same way the majority ran out to get on the property ladder, following the herd. Except some of us didn’t and now we would like you all to pay property taxes to avoid this in future and as reparations for the damage you have caused. Thanks.

      Reply
  • Kenny can kiss goodbye. If early elections happen, the result will leave FG in the doldrums.

    Property taxes will be repealed if the opposition win. Are you listening Irish people?

    Reply
    • mcbab 26/08/12 #

      Tim when you grow up you can join the real world. In the future you are talking about there would mass emigration by the well educated enterprising workforce who only want a fair tax policy. You will be left with low earners and social welfare recipients and how will your wonderful sinn feinn run the country then? By robbing more banks maybe?

      Reply
    • Yes we are, and you are 100% correct

      Reply
    • Really Tim are you for real?

      Reply
    • mcbab wrote:
      “In the future you are talking about there would mass emigration by the well educated enterprising workforce who only want a fair tax policy”

      No it won’t. The vast majority of mega-rich companies will stay in Ireland because it will still be one of the most competitive economies in the Eurozone even with tax increases. Mega-rich companies who can afford to pay their fair share will continue to avail of subsidies from the IDA and our educated english speaking workforce. Competing on taxes is unethical and takes jobs from other countries. Structural reforms on the other hand help restore confidence of private investors. Your definition of “fair tax policy” remains abstract. In other words, you expect tax breaks – the policy that caused Ireland’s financial crisis.

      Reply
  • oh and make sure renters pay the same as everyone else

    Reply
  • Have no money and can’t pay, what’ll they do then. This next budget will break the Camels(Enda) back, pull out of Europe and join the pound. Hello England, we’re back!

    Reply
    • When Sinn Fein win the next election, property and water taxes will be abolished. They will be replaced with a third band of income tax on the wealthy and corporations. The people must not be made pay these taxes to fill the tax breaks on the rich.

      Kenny for Ex-Taoiseach 2012.

      Reply
    • Ah yes Tim, those wealthy people who pay a sh1t load in tax already, and those evil corporations who provide employment

      Reply
    • Pierce,

      Taxes on the wealthy and corporations have been declining since the 1980’s. Fine Gael recently sanctioned tax breaks to wealthy people and corporations. Ireland has the lowest corporate tax take in western Europe despite worsening finances. People who vote for tax breaks need brain surgery.

      Reply
    • You would appear to be at one with Frau Merkel Tim. She also views tax harmonisation as a solution to the crisis.
      Personally, I believe that anyone who believes that they can tax or borrow a nation out of a debt crisis is economically illiterate.

      “In fact, what Merkel and her party are piecing together is a radical vision of the EU in a few years time – a deep fiscal and political union. The fiscal side involves tax harmonisation, a tightly policed Stability and Growth Pact with automatic sanctions for countries that breach debt and deficit rules, and the possibility of an EU Commissioner responsible for directly intervention to oversee budgetary policy in a crisis-hit country.”

      “All of this is based on the resolution “A strong Europe – a bright future for Germany” adopted at the party’s annual congress last November. The policy paper is clear about the causes and nature of the eurozone crisis – it is about excessive levels of debt built up by countries that lived beyond their means and who, by failing to implement labour market reforms, became chronically uncompetitive. Eurobonds and a system of credit transfers between north and south are out but it amounts to a bold package that would go down well with many federalists.”
      EUobserver 25/08/12

      Reply
    • Tim, could you define a “rich” person. Assets you cannot sell? Income, what level? Does it Metternich if the person has a hefty mortgage ? A large family ? Elderly parents who ned to be in residential care? Really, how to define the phrase “rich”. Billions ,yes. Millions ? Depends on whether it canbe realised, I suppose.

      Reply
    • Pierce , “evil” because they provide employment ? Where did you grow up?

      Reply
    • Sean wrote:

      ” Personally, I believe that anyone who believes that they can tax or borrow a nation out of a debt crisis is economically illiterate”

      These are the policies that got Ireland into its financial crisis. The lack of rational realism displayed by Sean reveals how corrupt the blueshirts are. Raising taxes on mega-rich companies that can afford to pay.

      Reply
    • Sarcasm there Rory

      Reply
  • well as far as I’m concerned they can tax what the hell they like. I’ve nothing left to give them. I pay the mortgage and bills and barely have enough for food, no luxuries. I have nothing to give, so good luck trying to take money that’s not there…..

    Reply
  • So you say ppl who pay rents should not pay Mick ,,, it works in the uk everyone pays it’s a fair system,,, we are going to have to pay it weather we like it or not ,,, no matter who gets in ,,,, I have voted SF the last time but there sums don’t add up ,,, they do good work on the ground but there tax system will not work

    Reply
  • We are doomed. Only ignorant fools will beg to differ.

    What a nation of people we really are…..

    Reply
  • xyz 26/08/12 #

    They can take it :D

    Reply
  • Tax yes taxes no

    Reply
  • Site value based please. No exemptions.

    Reply
  • alan 27/08/12 #

    At this stage I’ll be glad to surrender my house to the bank and rent, it’s not worth owning anything in this kip

    Reply
  • I sure it will be a fair and equitable system, whatever they decide.

    Reply
    • FG and LAB are gone at the next election. Your property taxes won’t last long until they’re abolished in the next election.

      Reply
    • And replaced with what?

      Reply
    • Replaced with:

      1) A third band of income tax on earnings above €100K

      2) Wealth tax on rich people

      3) An end to tax breaks on the filthy rich (in particular the well-known “double Irish arrangement” scheme that Bono uses to avoid paying taxes to the Irish state)

      4) A reduction in public sector pay (particularly high earners and the elites)

      5) Structural reforms to make Ireland more sustainably competitive

      Reply
    • 1) People who earn €100K pay roughly €41K in direct taxation, which is enough I think.

      2) So you work hard invest your money wisely and now you want a bit more, nice

      3) Agree with you on that one

      4) But no reduction in Social Welfare right

      5) Which reforms do you mean specifically.

      Reply
    • 1) Income taxes on high earnings in Ireland remain among the lowest in the western hemisphere. According to the OECD, Ireland is one of the lowest taxed countries on high earners compared to the U.S, Germany, France, etc.

      2) Wealthy millionaires like Bono use a tax loophole called the “double Irish arrangement” which enables them to avoid any tax liabilities to the Irish state whilst stashing their wealth in the Netherlands. Other wealthy millionaires stash their money and never invest it into jobs as evident since 2009. Since the 1980’s, taxes on the rich have been declining despite a ballooning budget deficit.

      3) Pay cuts of the order of 25% needed for public sector (high earners above €70K)

      4) People on entitlements have already taken a cut from €204 in 2009 to €196 in 2010 to €188 in 2012. People who are legally entitled to what they have paid for during their working days.

      5) Structural reforms to the labor market; for example making it more competitive in the form of price caps on Dentists, Doctors, Lawyers and implementing labor market reforms on renting by making it easier to evict non-paying tenants, easier to hire and fire and wage restraints across the entire public and private sector.

      Reply
    • I think it’s that you don’t like people who earn a lot of money, a want to tax them more. I don’t see how it’s your business how much somebody earns but when they pay almost half in direct taxation I have to say enough is enough. Like is said before I think the plug will be pulled on Bono, J.P. McManus etc, this won’t bring in any more money but it might make you feel better. A doctor, dentist or dog walker should be able to charge what they want for their services that’s how a free market economy works.

      Reply
    • The ordinary Irish people should not have to fill the tax gap that rich companies or businesses avail of. There is nothing wrong or dubious about raising taxes on the rich. Ireland still has one of the lowest taxes on earnings. In the USA, Germany and France, taxes are above 60%. In Ireland, taxes are just shy of a mere 45%. Corporation tax on mega-rich companies remains the lowest in western Europe. This despite the fact these companies can well-afford to pay their fair share of HIGHER TAXES. Facebook uses the “double Irish arrangement” tax loophole to avoid any tax liabilities to Ireland.

      Reply
    • “Facebook uses the “double Irish arrangement” tax loophole to avoid any tax liabilities to Ireland.”

      If that loophole gets closed, how long before we see the headlines ‘Facebook pulls out of Ireland costing 100s of jobs’? While I don’t like the fact that multinational companies use loopholes and low corporate tax rates to do business here, the income tax take from the jobs that they create by doing so is vital to the economy.

      Reply

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