Vol. 526 No. 4
253 Mr. N. Ahern asked the Minister for Finance if he will reconsider the stamp duty rates and introduce a system whereby the higher rate will only fall due for the portion over the threshold, rather than the current system; and if he will make a statement on the matter, outlining any difficulties which would arise from a change of system; and the reason for the current system which many see as unfair. [27033/00]
The whole structure of stamp duty is based on the "slab" system rather than a "step" system; once a threshold is exceeded, the rate applies to the entire consideration. This has always been the case with stamp duty and any change to apply a rate only to an excess over the relevant threshold would require a complete restructuring of the entire system.
Stamp duty is an important source of funding for the State. The stamp duty yield from residential property in 1999 was £207 million. This is a considerable sum which helps to finance public expenditure in areas such as education, health and the development of infrastructure and also permits the easement of taxation in other areas notably income tax. The introduction of a system as proposed by the Deputy would involve a significant cost to the current yield. Consequently, I have no plans to amend the current stamp duty structure.
