Dáil passes rise in commercial stamp duty

The Budget 2018 provision will increase tax on commercial property transactions

Minister for Finance Paschal Donohoe at the announcement of Budget 2018 in Government Buildings, Dublin. Photograph: Gareth Chaney/Collins

Minister for Finance Paschal Donohoe at the announcement of Budget 2018 in Government Buildings, Dublin. Photograph: Gareth Chaney/Collins

 

The Budget 2018 provision to increase stamp duty on commercial property transactions was passed in the Dáil late on Tuesday night.

With Fianna Fail abstaining, the measure was approved by 64 votes to 31.

Commercial stamp duty has now been trebled from 2 to 6 per cent and is expected to net the exchequer €376 million a year, paying for most of the cuts to USC and income tax that were also included in the budget.

Minister for Education Richard Bruton, on the Government’s behalf, said: “There is a strong pipeline of commercial property building and activity and I think the Revenue are very confident that there is a healthy demand and, if anything, an excess of supply.”

A number of TDs, including Independent TD Michael Fitzmaurice, raised concerns that the measure might apply to farm land.

Mr Bruton said the measure would mostly affect the commercial property sector.