Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank Deputy Sean Fleming for initiating this Bill and providing an opportunity to debate the local property tax.

The objective of the local property tax is to broaden the domestic tax base and to replace some of the revenue from transaction-based taxes with an annual recurring property tax. We know only too well how, in the past, transaction-based taxes proved to be an unstable source of Government revenue. By contrast, international experience has shown that property taxes are a secure and stable source of funding. It is also important to have a tax system that does not heap the entire cost of running the State on people going to work in the morning. Stability in our public finances is precisely what Ireland needs, now and into the future. Frankly, proposals from some on the Opposition benches to abolish the local property tax are reckless and irresponsible. I accept that Fianna Fáil originally opposed the tax, but its budget submissions for 2015 and 2016 included it. Moreover, the local property tax enables us to achieve our goals in a manner that does not have a direct impact on employment. The Government is steadfast in its determination to do everything in its power to protect and support the creation of jobs and ensure that the entire cost of our tax base is not heaped on those at work. As a measure that is a tax on assets, not employment, the local property tax will not adversely affect job creation.

The local property tax is fair and equitable, as the owners of the most valuable properties pay the most. Properties valued over €1 million are subject to a higher rate of 0.25% on the excess over €1 million. The local property tax legislation provides appropriately for ability to pay and conforms to international norms. It is now well established as a significant element of our taxation system. While I do not include Deputy Sean Fleming in this, some on the Opposition benches propose its reckless abolition. Despite this, the local property tax has a high level of compliance.

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