Dáil Éireann Debate, Tuesday - 16 May 2023
399. Deputy Michael Ring asked the Minister for Housing, Local Government and Heritage the Government’s plans for the abolition of rates, in view of the recommendation of the Commission of Taxation for the abolition of rates; if a review of commercial rates is being carried out; and if he will make a statement on the matter. [22541/23]
View answerLocal authorities are under a statutory obligation to levy rates on any property used for commercial purposes in accordance with the details entered in the valuation lists prepared by Tailte Éireann under the Valuation Acts 2001 to 2015.
A large body of case law is well established and local authorities and ratepayers are, in the main, very familiar with, and generally accepting of, the operation and practice of the rating system. Rates are also a stable source of financing for local government and make the largest single contribution to the provision of essential local services.
The Report of the Commission on Taxation and Welfare: Foundations for the Future recommended that a Site Value Tax (SVT) applicable to all land that is not subject to the Local Property Tax (LPT) should be introduced, replacing the existing system of Commercial Rates, and that there should be differential treatment in the application of SVT to agricultural land.
The recommendations in the Report will serve to inform the Government’s deliberations on such matters, however, there are currently no plans to replace commercial rates with a site value tax.
