Oireachtas Joint and Select Committees

Tuesday, 11 June 2019

Committee on Budgetary Oversight

Local Property Tax Review: Discussion

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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In response to the Deputy's points about my not making decisions, for those he has pointed to that I have not made, I would point to the ones I have made, principally the value added tax, VAT, in the hospitality and services sector, the change in the betting levy and the stamp duty on commercial property. He is correct to say that there are some changes I have not made but there are others that I have made, each of which met resistance from some in the House and certainly from those affected by them, and they still do. Experience has taught me that if we are to make further changes, particularly in the area of carbon taxation we need to build up a degree of consensus for doing it as I have done for the other changes I have made.

On the point about the long-term view I would like to see LPT yield more than it does at the moment but the caveat which has influenced what I have not done on LPT revaluation is that any changes must be modest and affordable and I would like to get to a position where the change which I propose to the committee – the Deputy is right that it is my responsibility to propose changes – is one that does not bring change for many, that for some is a change by a single band and for others is related to the value of their property. The greatest increase in yield will come from the number of new homes that come into the LPT net. That is how we will see it grow but we have a long way to go to see enough new homes becoming available to get to the percentage tax yield I referred to a moment ago.

Would the Minister see the yield rising to a similar percentage of GDP as in France or the UK?