Séamus McGrath (Cork South-Central, Fianna Fail) | Oireachtas source

I thank the Minister for that information. I accept 0.6% is a low figure. That suggests the cost to the State would not be significant if there were to be a further reduction in the interest penalty. I acknowledge there was a change in 2021 from 4% to 3%.

One of the flaws with the LPT is it is not based on a household's income; it is based purely on evaluation of the property. We know there will be properties in certain locations with high value but very often those households have a low income. It may be a household reliant on the State pension. It is unfair to charge a penalty of 3% to those households if they opt to defer the property tax based on income threshold grounds or hardship grounds. We should consider a reduction. I note in the changes announced that local authorities will have the option of increasing the property tax by up to 25%. That will allow scope for these households to be exposed to even greater liability. I ask the Minister to consider, in time, looking at the penalty again.

See this speech in context