Simon Harris (Wicklow, Fine Gael) | Oireachtas source

The proposed amendment would result in serious anomalies in the valuation list, which would be at variance with long-established valuation practices and the core principles of correctness, equity and uniformity which underpin the legislation. Under current valuation practices, if one took a parade of ten identical shops which were all of equal rental value and occupied by ten different businesses, one should reasonably expect that all those properties would have identical rates of valuation. This would not be the case if profitability were a consideration. The proposition that rates should be levied based on profitability rather than rental value would be a significant departure from the long-standing practice of levying rates by reference to property values. There are already taxes in place which are levied on profitability - for example, VAT and income and corporation tax. Furthermore, the relation between turnover and profitability can vary significantly within sectors, as in retail, and between sectors, such as fuel sales and hospitality. I note the point the Senator is making, but I am satisfied that there are other ways of taxing profit. This would be a significant departure from the valuation method and I do not propose to accept the amendment.