Dáil Éireann debate -
Thursday, 19 Oct 1995

Vol. 457 No. 3

Written Answers. - Residential Property Tax.

Ivor Callely

Question:

46 Mr. Callely asked the Minister for Finance if his attention has been drawn to public concern in relation to the anomalies that exist in the residential property tax scheme; if he will review this tax with a view to abolishing it in the 1996 budget; and if he will make a statement on the matter. [15183/95]

Minister for Finance (Mr. Quinn)

In this years Finance Act I provided for a number of changes in the operation of the residential property tax scheme which removed a significant number from the RPT net: the property value exemption limit was increased from £75,000 to £94,000; the income exemption threshold was increased from £25,000 to £29,500; the new thresholds will be index linked in future years, and the single 1½ per cent rate was restored.

I also retained all of the reliefs designed to meet concerns over the impact of the tax on certain households which had been introduced in 1994. These include: concessions for over 65s; concessions for widowed persons; concessions for incapacitated persons; a provision to deal with hardship cases; an easy payments scheme, and increases in the limits for marginal relief.

These provisions were designed to ease the burden on certain households who might otherwise have experienced a degree of hardship. However, it was recognised when these reliefs were introduced in 1994 that they could not cater for all situations of home ownership and that in removing one anomaly, other may have been created. With the best will in the world, tax legislation will find it difficult to cater for all situations.

All aspects of residential property tax, including the impact of the various exemptions and deductions allowed, together with any anomalies arising are regularly reviewed and I can assure the Deputy that his concerns will be borne in mind.

I would also like to point out that theProgramme of Renewal indicated that the future of residential property tax would be considered in the context of the review of local Government financing which is at present being undertaken by my colleague, Deputy Howlin, the Minister for Environment.