Madam, - I was delighted to read that the Progressive Democrats are to consider abolishing stamp duty (The Irish Times, September 18th) but was then disappointed to read that this is in the context of next year's election manifesto and not December's Budget. If it is a good idea, and I certainly believe it to be, why wait?
Stamp duty is a major burden for first-time buyers attempting to get on the first step of the property ladder when their preferred home is second-hand and above the €317,500 threshold set in December 2004. The Bank of Ireland's "Irish Property Review" last July predicted that the average house price by year's end would be €395,000 generally and €532,000 in Dublin.
Stamp duty on such prices for a first-time buyer would be €23,700 (6 per cent) for a house outside Dublin and €31,920 (6 per cent) for a house in the capital. These sums, which cannot be subsumed into a mortgage draw-down, put house-buying beyond the reach of many first time buyers and families.
Similarly, for couples and families who wish to progress to the next step of the property ladder for reasons such as location or extra space, stamp duty on the prospective new home can preclude, or at least delay, moving. Meanwhile, property speculators whose only aim is financial gain at the expense of those who are actually looking for a home are taxed no more than a non-first time buyer. It is an untenable situation.
Stamp duty is a tax on the wrong end of the property transaction. Capital gains - and I would argue, only capital gains on non-principal residences - should be taxed; and they should be taxed liberally. - Yours, etc,
TOM WARD,
Monastery Road,
Dublin 22.
A Chara, - Ordinarily I find myself opposed to Michael McDowell's position on most issues, but I am fascinated by the reactions of his colleagues on both sides of the Dáil to his suggestion that stamp duty be lowered or even abolished.
Most startling is that of the Minister of Finance who said that the loss of such a vast sum to the Exchequer would have to be supplemented elsewhere. By this I presume he means a substitute tax.
If this is the case, is Brian Cowen finally admitting what we all have known for a long time: that what this Government giveth with one hand, it taketh away with the other and that all the trumpeted income tax cuts it has introduced have in fact been clawed back through stealth taxes and rates increases? - Is mise,
DAVID O SULLIVAN,
The Island,
Chapelizod,
Dublin 20.
Madam, - If the Progressive Democrats are serious about significant reform of stamp duty they should propose linking the rate of duty to the energy efficiency rating of the house. Such energy labelling will become mandatory for all houses over the next few years, under EU law.
If a better energy rating meant a lower rate of stamp duty, this would provide another incentive to home owners to invest in energy-efficiency measures. Prospective buyers would be attracted not only by the reduced stamp duty payable but also by the knowledge that their future heating bills would be lower. - Yours, etc,
OISIN COGHLAN,
Director, Friends of the Earth,
Upper Mount Street,
Dublin 2.