Thursday 22 March 2018

Creighton's site-valuation proposal could cost more, says Taoiseach

Taoiseach Enda Kenny
Taoiseach Enda Kenny
Philip Ryan

Philip Ryan

TAOISEACH Enda Kenny has hit back at Lucinda Creighton's proposal for a property tax based on site valuation, suggesting it could cost homeowners more.

Ms Creighton's new party Renua pledged to introduce a two-pronged property tax based on site valuation and zoned land ownership.

The party said its plan would reduce the amount of property tax paid by city dwellers and increase the amount paid by homeowners in rural Ireland. Currently, people living in major cities pay more tax than those living in rural areas because of higher house prices.

The tax has led to division in both Fine Gael and Labour with Dublin TDs insisting their constituents are paying too much.

Yesterday, Mr Kenny said the Government was considering a range of options ahead of next year's budget. He said site valuation would not necessarily reduce the charge.

"I would point out, as building costs have not increased drastically in the last period, that site valuations have actually increased more than property valuation and that is a matter to be borne in mind," he said.

"The property tax is a matter for budgetary consideration. The Government [will] look very closely at the options that are open in regard to property tax following a report that explores a range of options."

He added: "The Government obviously is not going to have any revaluation of the property tax until 2016 and any reflection or change brought about will be a matter for the budget later this year."

It was suggested new measures on property tax would be unveiled in the Government's upcoming 'spring statement', but sources yesterday said this was unlikely. Finance Minister Michael Noonan is considering submissions on the tax as part of a consultation process which will feed into next year's budget.

The Economic Management Council had not discussed the issue recently, a source said.

Irish Independent

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