Property tax 'not a done deal'

Taoiseach Brian Cowen has insisted he was not ¿wedded¿ to the idea of a property tax as the Government bids to tackle the burgeoning…

Taoiseach Brian Cowen has insisted he was not ¿wedded¿ to the idea of a property tax as the Government bids to tackle the burgeoning budget deficit.

"I'm not wedded to property tax," Mr Cowen said in an interview published today. "But I don't want that to be suggested that we are not prepared to take the decisions that need to be made if that is what is deemed necessary,¿ he said.

"We have very low taxes on property in this country, if any."

The Commission on Taxation has finished a Government-sponsored report on possible changes to the system of taxation starting next year. It has been widely reported that it will recommend introducing a property tax based on each home's value to replace stamp duty, which is tied to property sales.

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The 17-member commission, chaired by the former head of the Revenue Commissioners Frank Daly, was set up in February 2008 with a brief to review all aspects of the taxation system, including its structure and efficiency. The 700-page report from the commission will be considered by the Government in the coming weeks and is expected to be published in the middle of next month.

Fine Gael and Labour have already expressed concerns over the implications of a property tax.

The Government is targeting €1.75 billion in additional tax revenues and €2.25 billion in spending cuts next year on top of existing measures unveiled as part of a five-year austerity plan to get its deficit under control.

"There are a lot of difficult political decisions coming down the line," Mr Cowen said.

Despite Fianna Fáil¿s poor showing in the recent local and European elections and the defections of Sligo-Leitrim TDs Jimmy Devins and Eamon Scanlon over Sligo cancer services, Mr Cowen insisted he still has the support of his colleagues.

"The party knows there is a job of work to be done by Government. People are going to have their say in terms of what the position should be," he said. "But at the end of the day, we have to close the gap between what taxes are coming in and what is being spent. If we don't do that we put the whole future at risk."

The Taoiseach, who has been criticised for his low media-profile and tight-lipped approach to dealing with the financial crisis, said he would be more pro-active about speaking directly to the public.

"I take the criticism. We have to get out there more, me included," he said. "I have to better communicate with the people. I will do that."

Mr Cowen also told the Sunday Independenthe no longer suffered from sleep apnoea, a disorder which meant that sometimes he only got a few hours rest a night.