Irish Lawmakers To Boycott Household Tax

by Jason Gorringe, Tax-News.com, London

19 December 2011

Nine rebel members of the Irish parliament have said that they will not pay the controversial household tax when it is introduced in January.

The introduction of a EUR100 (USD130) household charge was first announced by the Minister for Environment, Community and Local Government, Phil Hogan, in July.

Hogan said at the time that the levy is in line with the European Union (EU)/International Monetary Fund (IMF) bailout agreement, and is designed as an interim charge which will have effect while the government works toward the implementation of a full property tax.

Households will have three months to pay their bill from January, 1, 2012. Failure to do so will result in late payment penalties of EUR10 a month.

The Memorandum of Understanding with the EU and IMF commits Ireland to the introduction of a property tax for 2012 and to an increase in the property tax for 2013. The government expects to raise EUR160m from this initial levy.

In a heated debate in parliament, Prime Minister Enda Kenny was forced to defend the government's plans against the charge of opposition members that it would soon rise to EUR1,000 under international pressure.

Leading the charge against the government, Socialist member Joe Higgins accused Kenny of intimidating home owners with the threat of court action and fines for non payment of up to EUR2,500. He said that the government was waging an "economic war" and said electors should follow his example and boycott the charge.

Kenny responded by arguing that the charge equates to just EUR2 per household per week, while Hogan has confirmed that a full property tax will be implemented in 2013.

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