'Rising prices shouldn't mean households get penalised on property tax payment'
Householders shouldn't be "penalised" by hikes in Local Property Tax (LPT) brought about by rising house prices in a dysfunctional market, the new chairman of the Budgetary Oversight committee has said.
Fine Gael TD Colm Brophy said the committee would investigating the LPT regime ahead of a review of rates based on property value due to take place next year.
He said he wanted the committee to submit proposals to the Department of Finance that would allow the impact of rising house prices to be mitigated by a new system for calculating taxes due by individual households.
"I don't believe that people should be penalised due to issues of housing supply distorting the property market," Mr Brophy said. He added: "For many people, substantial increases in the LPT will be completely unaffordable."
Householders in Dublin and other counties that have seen spiralling house prices since the LPT was first introduced six years ago will be concerned about massive hikes after the rate review takes place in 2019.
The cross-party Budgetary Oversight Committee was set up after the election as a means of scrutinising measures that may be included in the Government's budgets.
Mr Brophy said it was his personal view that the country's local authorities didn't need a major cash windfall from any future local property tax changes. He said Finance Minister Paschal Donohoe was to appear before the committee shortly and he was looking forward to exploring the LPT issue with him to "work towards a balanced solution".