Business

Friday 9 December 2016

Scrapping the hated USC could lead to a staggering 600pc jump in property tax

Published 25/08/2016 | 11:18

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The Government may have to increase property tax by 600pc or hike the cost of petrol, diesel and alcohol, if it scraps the Universal Social Charge, a government briefing note claims.

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The details were set out in a briefing note for the incoming government in February, according to a report in The Irish Times.

The note outlines four options to replace the revenue lost by the abolition of the USC.

The first is to increase the local property tax six fold, hike stamp duty to 3pc, raise capital gains tax to 38pc and increase capital acquisitions tax from 33pc to 43pc.

The second would see petrol or diesel rise by 18 cent per litre, as well as an increase in excise duty on a pint of beer by €1.50, an increase in excise duty on spirits by €1 per half-glass, and the reintroduction of the 13.5pc VAT rate for the tourism sector and increases in other forms of VAT.

The third option would be to see the 20pc income tax rate rise to 25pc, and the 40pc rate jump to 45pc.

And the final option would be to hike the rate of corporation tax from 12.5pc to 19.75pc.

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