Minister for Finance Brian Cowen today faced further calls for the abolition of stamp duty for first-time buyers.
In its pre-budget submission, the Institute of Professional Auctioneers and Valuers (IPAV) called for a "radical shake-up" of stamp duty and a reduction in the number of stamp duty bands and lower rates.
Jim Power, Friends First
Mr Cowen has already ruled out changes in his December budget, saying his job is "not to interfere" in the property market.
But IPAV president Sean Mason said: "The current stamp duty regime acts as a major disincentive to labour market mobility. Lower stamp duty rates and wider bands would increase mobility and could prove self financing."
The IPAV called for the doubling of mortgage interest relief for first-time buyers and a doubling of the income tax exemption limit in the Rent-a-Room scheme.
Economist Jim Power who drafted the IPAV's submission said its intention "is to focus on helping first-time buyers which are the key to our continued successful economic growth.
"By combining the incentives for first-time buyers and alleviating the severe impact that stamp duty has on non-first buyers, the Government can facilitate much greater activity in the residential housing market which would prove self-financing," Mr Power added.
Economist Jim Power
The IPAV's call came as the Irish Bankers' Federation (IBF), the Consumers' Association of Ireland (CAI) and Chambers Ireland (CI) clubbed together to press the Minister to abolish stamp duty on Laser, ATM and credit cards.
On average this duty costs people between €10 and €40 a year and puts people off using cards instead of cash.
"Stamp duty on ATM and payment cards is, at this point, the only cost attaching to current accounts for many Irish consumers, as more and more providers have begun to offer free transaction accounts to customers," Pat Farrell, IBF chief executive, said.
Dermott Jewell, CAI's chief executive, said: "These duties, when introduced, were unrealistic and were specifically anti-consumer in nature.
"They represent an element of over-taxation - nothing more - and their abolition is too long overdue, and consumers know it."
Yesterday, Tánaiste Michael McDowell said the Government partners are not divided on the issue of stamp duty. The Progressive Democrat leader moved to dampen speculation that his party was at odds with Fianna Fáil on the tax levied on transferring homes.
Mr McDowell hinted at a PD meeting in September that he may curb or abolish stamp duty, but Minister for Finance Brian Cowen reiterated at yesterday's Fianna Fáil ardfheis that no changes were planned in next month's Budget.
Additional reporting PA
