Thursday 21 September 2017

TASC: Wealth tax could raise €150m

Finance Minister Michael Noonan
Finance Minister Michael Noonan
Colm Kelpie

Colm Kelpie

AROUND €150m could be raised by slapping a tax on net wealth in excess of €1m, a seminar heard today.

A study by think-tank TASC, commissioned by the Nevin Economic Research Institute (NERI),  claimed that a yield of almost 0.1pc of the value of the economy was “highly feasible” if the threshold was set at €1m and the rate was levied at 0.6pc.

The body said it would be a tax on household wealth, so foreign and Irish companies would not be liable. Farms would also be included.

“We are proposing that there be no base exemptions and reliefs for farmland, however that the threshold of liability be quite high. So €1m of net assets,” author Tom McDonnell said.

“We would envisage that very few farmers would be caught by this. You're talking about 1pc to 2pc of the population. In the region of 20-25,000 households and most would be in Dublin. The vast majority of farmers would not be affected.

“It would also be very fair. None of the low and middle income households would be affected by this wealth tax. It's almost unique as a type of tax which wouldn't put additional pressure on those type of households.”

The report comes ahead of next month's budget which will be delivered by Finance Minister Michael Noonan on October 15.

Online Editors

Also in Business