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

In theory, what the Deputy is saying is correct. The gain somebody might get from the increased value of the home, from a capital point of view, might be bigger than the vacant property tax they will pay. For a levy or tax like this to be equivalent to the capital gain a property may experience, there would have to be a huge increase in the vacant homes tax rate. The Deputy may indeed want that. We will have to consider this as the tax is implemented. However, there may be less wealthy individuals who have chosen to keep their home vacant for prolonged periods of time for whom these charges are going to be very considerable. If we were to deliver an increase in the scale of the vacant property tax that would need to be equivalent to the gain in capital value of some properties, other taxpayers may argue that the tax they are facing is disproportionate, that it is a significant increase in their tax liability and that they are not in a position to afford it. There is a balance we are trying to get right here. There may be people out there who have modest means, who are on a middle income, and who have a home vacant for a prolonged period of time, whatever their reason may be. They do not qualify for an exemption. I would wish that home had a tenant, a citizen or a family in it but those people may deem they are not going to do that and pay the tax. They could be of modest income and modest means. If we were to design a tax that was equivalent to the capital gain in a property, those people would end up facing a huge increase in their tax liability, which could have equity risks as well. What we are trying to do is pitch the tax at a level that will be a significant increase in the tax liability people face. It is a big increase but I feel it is one that is also fair and justified. As I said to the Deputy from the beginning, this is the kind of issue we have to keep under review to see if it is leading to the behavioural change we want.