Brian Cowen (Laois-Offaly, Fianna Fail)

The Deputy will be aware that the stamp duty code has applied a single rate to the full value of the property where the rate applicable depends on the value of the property concerned. That has been the nature of the tax since its inception. While there have been increases in the yield of this tax in recent years as a result of increased property prices, that is not something we can factor into future revenue yields either from that tax or the general Revenue take. Nor can we expect that market conditions, which have softened in recent times, will be renewed with the increased price inflation that would result.

When considering how to improve structures of taxes such as this, one must have regard, among other issues, to simplicity and cost. If the threshold issue was applied to current rates, the full cost of it would be over €550 million or 42% of the yield on residential property. We have been able to reduce the direct tax burden on income, which means there has been an increased contribution from capital taxes and stamp duties as a result. This must also be borne in mind.

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