Bernard J. Durkan
Question:59 Mr. Durkan asked the Minister for Finance if he will revoke his budgetary proposals in respect of residential property tax in the context of the forthcoming Finance Bill; and if he will make a statement on the matter.
Written Answers. - Residential Property Tax.
The Government remains convinced that the changes in the residential property tax announced in the budget are fully justified as a modest contribution towards tilting the balance in the tax code more in favour of productive investment, which helps in creating and safeguarding employment, and also giving a greater measure of equity in the tax system. From the employment viewpoint, the relative tax advantages of investment in dearer housing can only be to the disadvantage of industrial and commercial investment which is essential for employment growth.
The Government on 8 February 1994 announced that any anomalies in the residential property tax scheme would be examined and dealt with in the forthcoming Finance Bill. In accordance with this undertaking the Government is considering anomalies which could cause unreasonable hardship. The aim is to preserve the essential features of the budget proposal, particularly in terms of its contribution to the wider pro-employment thrust of taxation policies, whilst at the same time catering for the more deserving anomalies in the scheme which have been highlighted in recent weeks. Any such anomalies have of course been inherent in the basic structure of the scheme as it has existed since its introduction and which has not been altered by the budget extensions.