Sunday 22 October 2017

Reforming the unfair property tax will give revenue back to communities

Lucinda Creighton
Lucinda Creighton

Lucinda Creighton

Various Government backbenchers, as well as the Taoiseach, have launched a coordinated attack on RENUA Ireland for committing to reform the unfair Local Property Tax (LPT) system which they introduced. Renua has committed to introducing equity to the LPT system, ring-fencing revenues generated for the provision of local services and for building a national social infrastructure, such as community creches and community care facilities for the elderly.

It is hard to understand why our proposals, which are designed to drive efficiency and transparency at local government level, are the subject of such outrage from the Government. It may, of course, have something to do with the fact that our proposal to move to a site value tax, is precisely what the Government parties promised in their own Programme for Government in 2011. Unfortunately, like so many of those promises, the Government has failed abysmally to honour its own commitment.

In the Programme for Government, those parties promised to "consider, arising from the previous Government's deal with the IMF, various options for a site valuation tax. Any site valuation tax must take into account the significant number of households in mortgage distress and provide local government with a reliable stream of revenue."

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