Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

It is important to point out again that this is being done on a revenue-neutral basis. There is no tax increase here and two thirds of businesses in Kerry will see their rates go down. I appreciate that we are hearing from the one third who are not, particularly those who are seeing a big increase, but two thirds are seeing their rates go down. To defer the revaluation would adversely affect more businesses than going ahead with it would.

In the medium term, we need to examine a new tax to replace commercial rates. The Commission on Taxation and Welfare suggested that we move towards a site valuation tax, a commercial property tax. There are pluses and minuses to that, as in the case of any reform. However, in those circumstances the charges would fall on the owner of the building rather than the operator of the business. That is something we are considering but that is for the medium term. In the meantime, the valuation goes ahead.

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