€100 household tax could be hiked after next year
The €100 household tax could increase after next year, according to Environment Minister Phil Hogan.
“Each year the Minister for Finance will have to look at the budgetary arithmetic,” he said.
“All I can is that for 2012, it will be €100 or €2 a week,” Mr Hogan said in an interview with RTE’s Pat Kenny.
The tax is just a preliminary levy until water and property taxes are ready to be imposed as part of the EU/IMF bailout loans.
Mr Hogan said the charge would raise €160 million in 2012 which will fund local services.
Certain households will be exempt from the tax including those in social housing and residents of certain ghost estates.
If households liable for the tax don’t cough up, they will be fined €10 a month after three months non-payment.
Opposition parties have railed on the tax because it is a flat rate levy.
The United Left Alliance said it will organise a nationwide boycott of the tax which kicks in at the beginning of next year.
But Mr Hogan dismissed such plans and said the tax is unavoidable
“We are as a country broke…we’re obliged to bring in these charges otherwise we won’t get the funding that’s necessary from our partners in Europe to fund the country…if people like Joe Higgins want to grandstand in the Dáil about it they can tell the people where they’re going to get the money otherwise."