Dr. Bert Brys:

The category of property taxes is broad and includes transaction taxes, which is not a type of tax that is most favoured. We talk about recurrent taxes on immovable property. It is definitely an important and a good tax to have in a country's tax mix. That fits and is very nicely aligned with the report that we are talking about. We are clearly in support of that. The point that we make is that the recurrent tax on immovable property needs to be designed well. The key point there, as Ms Perret said, is the valuation. If property is not valued, at some point the tax becomes unfair. People living in similar houses, where one household bought the house in the 1970s and the other just recently, might be paying different amounts of tax, despite the fact that they live in a similar house in the same location. The regular update, also as recommended in the report, is something that we fully agree with. Also, we agree that strengthening the role of recurrent tax on immovable property, when well designed and at levels that are efficient, fair and remain affordable for houses is an important reform as part of the mix of reforms that were recommended in Ireland's report.