THE ISSUE of introducing a residential property tax “would have to be thought out with great, great care” and was not going to be “rushed into” by the Government, Minister for Finance Brian Lenihan said yesterday.
Speaking on RTÉ radio after publication of the National Asset Management Agency (Nama) Bill, Mr Lenihan said there would be “a fundamental issue in equity” if people who had paid “substantial stamp duties” on the purchase of houses at the height of the boom were now asked to pay property tax as well. The tax burden in general was “high enough” and the Government was already committed to the introduction of a carbon tax. In that context, imposing a property tax was “a very complex proposal”.
The reintroduction of property tax and the elimination of stamp duty on house purchases were among the recommendations in the Commission on Taxation report published on Monday.
Questioned on RTÉ's News at Oneyesterday, the Minister said he was "very conscious" that "the burden of taxation in this country is high enough". "We've increased it both in the last budget and in the supplementary budget in April. Income tax is at its limits. I've also made clear that we're committed as a Government . . . to introduce a carbon tax."
Praising the “very good work” done by the commission, Mr Lenihan said, “the fundamental economic problem . . . is that we are spending too much compared to what we are earning”.
