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

As the Deputy and I have discussed over many exchanges, wealth can be taxed in a variety of ways, some of which are already levied in Ireland. Capital gains tax and capital acquisitions tax are, in effect, taxes on wealth in that they are paid by an individual or company on the disposal of an asset or the acquisition of an asset through gift or inheritance. Deposit interest retention tax is charged at 33%, with limited exemptions on interest earned on deposit accounts.

Local property tax, which the Deputy is opposed to, is a tax based on the market value of residential properties. Stamp duty is charged on the transfer of shares, stocks and marketable securities of Irish registered companies as well as on the purchase of property, both residential and non-residential. Wealth is already taxed in many different forms here in Ireland.

On the issue of household wealth, in September 2020 the Central Bank published a report, Household Wealth. It presents the results from the household finance and consumption survey, HFCS, which collects data on households’ financial positions. That survey was undertaken before the pandemic, but in time will provide a starting point against which to benchmark its impact on household finance positions and consumption patterns.

I am informed that the HFCS indicates that household net wealth grew by more than €76,000, or 74%, for the median household to €179,000 from 2013 to 2018, making clear that a significant portion of wealth for most households is tied up in the family home. This net wealth grew across the entire wealth distribution while inequality fell. The decline in negative equity from 33% in 2013 to 4% in 2018 was a key driver of this. While the net wealth of the top 20% of households increased by approximately 52% from €560,000 to €853,000, the relative share of net wealth held by the top 10% decreased by 2.6% from 2013, and is 1.3% below the equivalent figure for the eurozone as a whole.

As was confirmed in the recent budget tax policy changes document, a range of metrics demonstrate that, compared with other countries, the Irish tax and welfare systems contribute substantially to the redistribution of income and a reduction in income inequality. My officials continue to examine all issues related to taxation, including the taxation of wealth, on an ongoing basis, and they and I will monitor the data and consider any additional information that comes to light. It will not surprise the Deputy that I do not have any plans to introduce a wealth tax or to produce a new report on same.

For those reasons, I cannot accept the Deputy's amendment.