Government Ministers have claimed over €0.5 million in tax relief over the past six years for the cost of keeping a second home in Dublin, under a special exemption not available to other taxpayers.
Labour Party housing spokesman Ciarán Lynch, who obtained the figures in a parliamentary question today, called for an end to the “nice little bonus”.
Section 836 of the the Taxes Consolidation Act provides for a tax deduction in respect of the cost of maintaining a second residence where, arising out of the performance of his or her duties, a Minister or Minister of State obliged to maintain a second residence in addition to his or her main home.
The highest amount of relief was claimed in 2003, when €109,540 was claimed by 19 Ministers and Ministers of State.
In 2002, 18 Ministers claimed €95,051; in 2004, 13 individuals claimed €63,448; in 2005, 18 Ministers claimed €105,112; in 2006, 15 Ministers claimed €91,750 and in 2007, the most recent year for which figures are available, 16 Ministers claimed a total of €88,335 under the relief provision.
Mr Lynch said the relief was not limited simply to mortgage repayments but applied to any cost of maintaining a second residence.
“This is a nice little bonus for Ministers and Ministers of State to add to the very substantial salaries and expenses that they already receive.
“At a time when cutbacks are being imposed on so many essential services and poorly-paid clerical workers in the offices of these Ministers are about to be docked a very heavy pension levy, there is no excuse for the continuation of yet another exclusive ministerial perk of this nature.”
He urged Minister for Finance Brian Lenihan to “set an example” and to amend the legislation to bring an end to the tax relief.