Hayes: cut builders' VAT rates to ease crisis
Published 12/04/2016 | 02:30
Fine Gael MEP Brian Hayes has called for builders' VAT rates to be slashed permanently to 9pc in order to ease the housing crisis.
His party has already mooted in talks on forming a government the idea of temporarily reducing the tax from 13.5pc for residential housing.
However, Mr Hayes has called for a more radical implementation because of "serious housing shortage problems".
The Construction Industry Federation's director general, Tom Parlon, welcomed his comments, saying that reducing VAT was "critical in stimulating the house-building sector".
However, he added: "This measure on its own won't make house-building viable in particular areas in Ireland, where the benefits of construction activity are most needed."
Mr Parlon said the Government must "look at all areas", including reducing levies and shortening the planning process.
The Simon Community said it welcomed "any proposal to alleviate the crisis" adding: "We need to cut through the red tape."