Irish Property Tax To Raise EUR500m A Year

by Jason Gorringe, Tax-News.com, London

26 December 2011

The Irish government has confirmed that a property tax will replace its unpopular Household Charge a year earlier than planned, with the Prime Minister Enda Kenny saying he hopes it will raise EUR500m (USD650m) a year.

Speaking to RTE News, Kenny said the government had always intended that the EUR100 levy be a temporary one. Under its bailout commitments to the European Union and International Monetary Fund, Ireland had been due to introduce a full property tax in 2014, with the Household Charge serving as an interim measure.

Kenny has come under fire over the Charge from a group of rebel lawmakers, who have launched a boycott campaign to encourage taxpayers to avoid paying the levy. In the face of such opposition, Kenny confirmed that the government has appointed an expert group to investigate the structuring and implementation of the property tax. The group will report back to the government in March next year, with a view to introducing the tax in 2013.

Kenny added that he wants the property tax to be equitable and affordable. He stressed that this is why there have been no income tax hikes, to enable people to plan their lives in a clearer way. The government will make a decision on the shape and form of the tax once it has received the group's report.

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