Paul Kehoe (Wexford, Fine Gael)
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Question 107: To ask the Minister for Finance if he has satisfied himself with the equity of the stamp duty code. [29891/04]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As previously advised to the Deputy in a reply to a parliamentary question on 14 October 2004, stamp duty is a tax on property and property rights. As ownership of property is positively correlated with income, the incidence of this tax will tend to fall more on those on higher incomes. The equity of this depends on one's viewpoint but such a tax is generally regarded as progressive from the point of view of equity.

As for equity between different classes of purchasers of property, the following points are of relevance: stamp duty does not arise in the case of transfers on death; stamp duty does not arise in the case of transfers between spouses; half the normal rate applies in the case of transfers between other close relatives; no stamp duty applies in the vast majority of purchases of new houses by first-time buyers or other owner occupiers, whereas investors pay the normal rates on the purchase of new houses; and in the case of the purchase of a second-hand house by a first-time buyer, stamp duty only applies if the value exceeds €190,500.

It is always difficult to achieve complete equity in taxation but this issue is borne in mind where relevant in the case of stamp duty.

Jack Wall (Kildare South, Labour)
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Question 108: To ask the Minister for Finance his views on the recent suggestion made by Dublin City Council for the introduction of a sales tax and hotel bed tax to fund local councils; and if he will make a statement on the matter. [29870/04]

Brian Cowen (Laois-Offaly, Fianna Fail)
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It is my understanding that this question relates to a detailed submission by Dublin City Council to a major independent review of local government financing in Ireland which is being carried out. The Minister for the Environment, Heritage and Local Government has set up a steering group to oversee this review, which is expected to be completed in spring 2005. At this juncture it would be premature of me to offer any comment on the possible recommendations or measures which may arise from the review process.