Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

As regards a vacant property tax, an independent report on this topic commissioned by my Department was laid before Dáil Éireann on 18 September 2018, in accordance with the provisions of section 86 of the Finance Act of last year. The independent Indecon consultants report on the taxation of vacant residential property presents a detailed evidence-based assessment of vacancy rates in areas in which the demand for housing is most acute. This assessment suggested that the vacancy rates in these areas is significantly lower than the national average and indeed has fallen in recent years. The report also suggests that the vacancy rate is likely to continue to fall. The report did not recommend the introduction of a residential vacant property tax at this time as it did not indicate that it would be an effective response to deal with housing shortages. The report's view is that low vacancy rates in the areas of greatest demand for housing, particularly in terms of medium-term vacancy, indicate that the potential for a vacant property tax to increase housing supply is limited and could indeed represent a distraction from the need to accelerate significantly the building of new social and affordable housing, and the facilitation of other housing supply.