Oireachtas Joint and Select Committees
Thursday, 8 November 2018
Select Committee on Finance, Public Expenditure and Reform, and Taoiseach
Finance Bill 2018: Committee Stage (Resumed)
10:00 am
Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source
The previous tax relief in respect of rent paid was abolished in budget 2011 and it is no longer available to those who commenced renting for the first time from 8 December 2010. This followed a recommendation in the 2009 report by the Commission on Taxation that rent relief should be discontinued. The view of this independent commission was that, in the same manner in which mortgage interest relief had an effect on the cost of housing, rent relief increases the cost of private rented accommodation.
Accordingly, the result of reintroducing this relief would be a transfer of Exchequer funding directly to landlords, which would not have the intended effect of reducing the pressure on tenants. In addition, a tax credit of this kind would be of little benefit to lower-income workers, the unemployed and students, who may not receive the benefit of the relief as they may not be paying sufficient levels of income tax. Finally, at the time of its abolition, the rental tax relief cost the Exchequer up to €97 million per annum. On certain assumptions, it is likely that the annual cost of the Deputy’s proposal, if introduced, would be even higher. In the circumstances, I do not propose to accept the Deputy’s amendment.
No comments