Noonan facing backlash as Dubs to pay most home tax
ANGER: Valuation basis unfair, TDs tell Finance Minister
FINANCE minister Michael Noonan is facing a backlash from Dublin-based TDs over fears the new property tax will hit homes in the capital the hardest.
THE Finance Minister told TDs last night that he is considering levying homes at 0.25pc of their value from July.
The move would see a homeowner of a ¤200k property paying €250 next year and €500 in 2014.
The news has sparked uproar among Dublin deputies, who fear their constituents will be hit harder than rural property owners, as house prices in the capital and surrounding areas are typically more expensive.
The IMF is seeking an annual property tax of 0.5pc of the value of a house, but Mr Noonan has already ruled that out.
The property tax will be introduced from July 1, with a full year's tax starting in 2014
A cohort of Dublin TDs has already begun to lobby Mr Noonan about the pitfalls of targeting properties based on their value with the majority "strongly opposed" to rolling out the property tax in this manner.
In an exclusive interview with the Herald, Junior Minister Brian Hayes indicated his opposition to basing the property tax on valuation.
"We're all concerned when we're introducing a new tax and it's important we get this right. The second concern is clearly -- if the tax is perceived to be anti-urban or anti-Dublin -- that would be a concern to Dublin-based deputies like me and others," he said.
To avoid the shambolic situation that has arisen in the collection of the €100 Household Charge, Revenue Commissioners will deduct the charge from PAYE workers
Unlike the household charge, Mr Noonan said it will be virtually impossible for anyone to avoid paying the tax in full.
The Budget will be held on December 5, with ministers expecting both expenditure and taxation measures to be announced on the one day
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