The introduction of a property tax next year is going to be "political dynamite", Fianna Fáil finance spokesman Michael McGrath has warned.
"Many ordinary people could be facing property tax bills of €500 and more," he said.
But he welcomed indications that an expert group set up by the Government may propose concessions for those who paid high levels of stamp duty in the boom years.
The proposal, reported in The Irish Times, was also welcomed by Labour backbencher Ciarán Lynch and Wicklow Independent Stephen Donnelly who both said there should be recognition of the costs incurred at that time.
Mr McGrath said the situation facing “people in negative equity, those suffering mortgage arrears and those with a genuine inability to pay” should be taken into account.
The Fianna Fáil spokesman added: “The full property tax is going to be political dynamite in 2013, and the reality is that many ordinary people could be facing property tax bills of €500 and more.”
However, Sinn Féin’s Pearse Doherty said the whole notion of a property tax as well as the current household charge should both be scrapped. “Any waiver system must be based on people’s ability to pay, not on the level of stamp duty paid in the past,” he said.
The proposed exemption from property tax for those who paid stamp duty at the height of the market could mean “a windfall in tax relief for high earners and owners of very large properties,” he said.
Previously, Minister of State for Finance Brian Hayes has said it would be premature to speculate about the content of the anticipated report of the expert group which has been tasked with bringing recommendations to Government on implementing an “equitable” property tax to replace the contentious household charge.
However, Mr Hayes said there should be an acknowledgement that many people who bought houses and apartments in the middle of the last decade had generally paid very high stamp duty bills.
