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Dáil Éireann Debate, Tuesday - 27 July 2021

Tuesday, 27 July 2021

Questions (368)

Gerald Nash

Question:

368. Deputy Ged Nash asked the Minister for Finance the estimated cost to the Exchequer of reducing the interest on deferral of local property tax payments to an annual rate of 0.5% based on the latest available data in tabular form; and if he will make a statement on the matter. [39931/21]

View answer

Written answers

The interest rate for Deferrals of Local Property Tax (LPT) in respect of the current ‘Valuation Period’ (2013 to 2021) is 4%. The table below, in columns 1 to 4, sets out the number, value and accrued interest to date on Deferrals taken out each year from 2013 to 2020 (Deferrals for 2021 won’t attract interest if payment is made this year). Columns 5 and 6 in the table show the impact if the interest rate for the years in question was set at 0.5%.

Year

No of deferrals

Deferred Liability currently on record €M

4% Interest Accrued to date €M

0.5% Interest Rate €M

Reduction in amount of interest €M

2013

23,134

2.9

0.9

0.1

0.8

2014

30,081

7.1

2.2

0.27

1.9

2015

36,319

7.8

2.0

0.25

1.8

2016

44,641

9.1

2.0

0.25

1.8

2017

47,735

10.0

1.8

0.23

1.6

2018

46,331

9.9

1.4

0.17

1.2

2019

45,119

9.8

1.0

0.12

0.9

2020

43,393

10.4

0.65

0.08

0.6

Total

12.1

1.5

10.6

The interest rate to be applied to Deferrals of LPT in the new ‘Valuation Period’ (2022 to 2025) is reduced to 3%, as provided for in the Finance (Local Property Tax) (Amendment) Act 2021.

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