Richard O'Donoghue (Limerick County, Independent) | Oireachtas source

A €250,000 mortgage is, in today's terms, a small mortgage. The VAT of 13.5% on €200,000 amounts to €23,788.55. The VAT on the other €50,000 of the mortgage stands at 23%, amounting to €9,349.60. That equates to a total of €33,138 in tax that the Government is taking off a person on their mortgage. If we then look at the contractor who has to build that house, the average tax he or she will pay on that is €10,204, which means that on a €250,000 mortgage, the Government takes in tax €43,342.15. Moreover, in order for a couple to qualify for that mortgage over 25 years, they will have to pay annual tax of €12,792. Over 25 years, that amounts to €319,800 in tax for a person who wants to build a house for €250,000. We are talking about mortgage relief here.

The Government is taxing them out of existence. It is not only the banks that are the problem; the Government is the problem. This is before we consider the cost of living. The Government is charging people 50 cent on every drop of juice going into their cars. On everything the Government is taxing them out of existence.

There is no reward in this country for the person who works - no reward. Your only reward is tax. Even when you come to end of your days and you want to go to a nursing home, if you have any few bob in the bank, the Government makes you spend your own money up to a certain cap. Even if people wanted to leave it to their children or grandchildren to give them a start into the next generation, it is taxed. It is not only the banks that are ripping off this country, it is also the Government in tax.

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