The Labour Party's deputy leader Joan Burton has said the special tax rate available to property developers was a key factor in creating the property bubble.
Figures obtained by RTÉ show the tax break, which was intended to encourage the freeing up of land for development, cost the Exchequer in the region of €800 million from the time it was introduced in 2000 until it was gotten rid of last year.
The incentive meant that proceeds from the sale of land were taxed at 20 per cent instead of the higher rate of up to 42 per cent.
Speaking on RTÉ Radio One today, Ms Burton said the measure was one that had been the subject of much debate over the years. She said it had incentivised those who owned land outside cities and towns around the State to get involved in property development.
"This was one of the key things that fuelled the property development. It drove up the price of land," she said.
"This was simply part of a carnival of speculation that was ramped up and egged on by in particular [former taoiseach Bertie Ahern's] first and second administrations."