No decision on property tax - Cowen

NO DECISIONS have been made about the possible introduction of a property tax, Taoiseach Brian Cowen has told the Dáil.

He said such a move would require “major structural changes in the taxation system”.

Fine Gael leader Enda Kenny asked the Taoiseach to confirm media reports yesterday that a property tax might be introduced in the December budget with charges ranging from €250 to €3,000 depending on the size and location of homes.

He described the proposal as “grossly unfair”, and said Fine Gael would oppose it.

He also asked Mr Cowen for a “yes” or “no” answer.

The Taoiseach declined such a reply, and said: “That is a budgetary matter that will be decided at the time of the budget.”

He added that a “site-value tax is mentioned in the Programme for Government and the Commission on Taxation has suggested a need to widen the tax base. However no decisions have been taken on these matters.”

He said he could not comment on “speculation”.

Mr Kenny said the media reports were not “straws in the wind” but “deliberate briefings to the media as the Government flies another kite”.

He said “families cannot have any confidence unless there’s some sense of security and clarity about the security of their family incomes”.

Referring to the McCarthy report on cuts in public spending, Mr Kenny said it made “a series of recommendations to the Government, fewer than one in 10 of which have been implemented”.

“There is plenty of scope to reduce borrowing without the introduction of a property tax.”

He added that the Government presented “straw men” and would claim there was no alternative to a property tax. “There is an alternative. What the Government is proposing now is grossly unfair.”

The Taoiseach said he had made clear that the introduction of any property tax would represent “a major structural change in the taxation system” and would “have to take into account the total tax impact on individuals”.

He added that “we want to make sure we have a clear view of the impact of any such proposal”.

Mr Kenny said: “You’re refusing to rule it out.”