Enda Kenny (Mayo, Fine Gael) | Oireachtas source

The position in regard to the property tax has been outlined by the Minister for Finance in the budget. The property tax will apply for a half year for 2013 and for a full year from 2014. The valuations will be set in bands of €50,000 and the tax will be levied at 0.18%, with a 0.25% charge for those who have houses that are valued at more than €1 million and in respect of the element of the valuation over €1 million.

The structure has been set out by the Revenue Commissioners. The introduction of the Bill is to make way for that process to apply. The Minister has outlined the understanding of the difficulty that people have these days in the economic circumstances in which the country finds itself. Arrangements are made and allow for a deferral in certain circumstances for people who find themselves in a situation where they cannot afford to meet the level of the property tax.

As Deputy Martin is aware, the introduction of a property tax in this country is with the intention of broadening the tax base. A situation has applied for many years where, year after year, local authorities found an easy way of increasing rates on commercial premises, which has placed an inordinate strain upon them and, given the difficulties about the confidence in the indigenous economy, it is necessary that the tax base be broadened. The property tax will be used, and the majority of it applied and spent, in the local authority areas where it is raised for services for people. I expect local authorities will publish their schedules of work so people will understand the property tax they pay goes for services for themselves and their families in the areas in which they live.

It is true that many people are now in straitened economic circumstances. That is why the level of the property tax was pitched at 0.18%. The valuation in terms of the banding is fair and progressive and those who have more and who have houses with higher valuations-----

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