Tánaiste Micheál Martin has expressed surprise at a Fine Gael proposal to increase stamp duty for bulk purchases of houses by investment funds saying it would have been “sensible” to wait for the outcome of a review of the issue.
The Fianna Fáil leader’s criticism comes after junior finance minister Neale Richmond suggested at the weekend that the 10 per cent stamp duty charge for such purchases should be doubled.
Mr Richmond said the 2021 previous intervention bringing in the 10 per cent rate had been effective at slowing the trend but that more action was now needed.
He said he would raise the matter in budget talks with Minister for Finance Jack Chambers this week.
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The first pre-budget meeting involving the three Coalition leaders, Mr Chambers and the Minister for Public Expenditure Paschal Donohoe, was due to take place on Monday evening.
At a press conference earlier today, Mr Martin said different ideas and proposals are generally floated at budget time.
He urged caution “in terms of market sensitive issues” and said a “substantive review” of the stamp duty issue had already been commissioned.
“That review is nearing completion and I’m surprised at Minister Neale Richmond’s comments yesterday because I would have thought the sensible thing would have been to await the outcome of the review because we must approach these issues ... in an evidence-based way”.
Mr Martin also said: “There had been no heads up with the Minister for Finance in respect of this but look, we’ll engage on it.”
Over the weekend Mr Richmond rejected suggestions he was playing politics with the proposal.
Mr Martin said he is “conscious of the need for investment from the private sector in housing” and “if we keep chopping and changing or if there’s a lack of certainty in respect of that, that could damage investment in housing”.
He said when the stamp duty review is published the Government “will take an informed decision on the basis of that”.
The Government previously rejected a Sinn Féin proposal to increase the tax, which is levied on purchases of houses by buyers who have already bought 10 homes or more in 12 months, to 17 per cent.
Speaking on Monday, Taoiseach Simon Harris denied the latest Fine Gael proposals on stamp duty would amount to a U-turn saying: “As I’ve consistently said ... if you make changes to taxation, you generally do it through the budgetary process.
“Obviously, the three parties in Government will decide how best to address this and the Budget will be delivered on the first of October.”
He also said he hoped to see progress on the issue “but that will be a matter for a budget day decision.”
Separately, the Green Party is pushing for the introduction of a once-off €560 child benefit payment for new parents as part of budget negotiations.
Party leader and Minister for Children Roderic O’Gorman said parents of newborns face extra financial pressures like buying a cot or car seat.
He said the once-off €560 payment, four times the regular €140 child benefit payment, would “give a very clear indication to parents that we’re supporting them and their newborn in those first weeks in a very tangible way”.
The Taoiseach, Mr Harris, did not directly respond to the idea on Monday but said: “it’s an absolute priority for me, and I welcome the fact that it’s a priority for others in the Coalition, that this budget has a real focus on children, families, tackling child poverty”.
Mr Martin – who has previously said his party wants a €10 increase to the regular child benefit payment – said the Green Party idea is an “interesting proposal”.
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