asked the Minister for Finance if he will exempt from income tax amounts paid in rates by persons purchasing dwelling houses for their own use by way of loan, with a view to the elimination of double taxation.
Ceisteanna—Questions. Oral Answers. - Income Tax Exemption for Rates.
17.
I am not prepared to grant the exemption sought by the Deputy.
Is the Minister aware that this double taxation represents a grave hardship on the people concerned, apart from the fact that it is bad in principle, and does he not consider that a blunt refusal of this kind offers little relief to people who are, in such numbers, struggling against considerable odds in purchasing their own houses in Dublin and many other parts of the country, and in the light of that will he reconsider the whole matter before the Budget?
It is quite obvious that this would be entirely unilateral action which would create difficulties in regard to the income tax code. The Deputy should know that the annual interest on a house purchase loan is for tax purposes treated as reducing the payer's income and that certain insurance premiums also qualify for relief.
The fact of the matter is that the people concerned have to pay rates and that the amount they pay in rates is taxed for income tax purposes also, and that is wrong.