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Property tax will hit capital hardest

DUBLINERS will pay more property tax than their rural counterparts next year because properties are more expensive in the capital.

Dublin City Councillor Christy Burke said that Dubliners are being unfairly targetted. "I find the whole scenario appalling. They are squeezing people even more, particularly Dublin people, with the link to property value," he said.

Full details of the new property tax will be revealed in next week's Budget.

But it has emerged that hard-pressed homeowners will be hit with a tax linked to the value of their home -- and they will have to calculate the rate themselves.

It is expected that the tax will range between €200 and €400 for most homeowners.

The tax rate will be set at 0.2pc of the value of the property, but could rise to 0.25pc.

The various moves are being discussed in Cabinet, but Government sources said it is unlikely the fee will be automatically taken at source from those who are in receipt of payments from the State.

Instead it will be up to individual homeowners to make the payment.

However, if an individual fails to pay the property tax and was still receiving money from the State, the money might be recovered from the weekly social welfare

"This would not include child welfare payments," a source said. "It would just relate to the person's principal weekly payment."

But deducting property tax direct from social welfare payments has still to be resolved.

Revenue officials, the Minister for Social Protection Joan Burton, Environment Minister Phil Hogan and Finance Minister Michael Noonan all have different opinions.

Householders will pay half of the fee next year as it will only come into effect in the second half of 2013.