€100 homes charge to bring in €160m
Published 05/11/2011 | 05:00
HOMEOWNERS will be hit with a new charge of €100 per household in a bid to raise €160m for government coffers.
And tenants in private rented accommodation may also be hit with the new tax.
While the census showed as many as 1.6 million households, not all of them may pay.
With more than 400,000 people unemployed, many of those households will not be expected to pay the charge, while those in local authority homes might also be excluded.
"It would be very ambitious to raise the €160m in that way," said Marie Hunt, director of property consultants CB Richard Ellis.
Instead, the minister may seek to raise revenues through other forms of property taxes. For instance, he may force landlords to pay the household charge on all their properties.
In addition, he may tax the profits generated from selling private homes. Fine Gael signalled before the last election that such a tax should be introduced.
Another way to hit households will be to abolish tax relief on mortgage interest for homeowners and investors.