Paul Murphy
Ceist:168. Deputy Paul Murphy asked the Minister for Finance the estimated cost in 2021 and 2022 of reducing the rate of interest on deferred local property tax from 4% to nil. [44454/21]
Amharc ar fhreagraTuesday, 21 September 2021
Ceisteanna (168)
Freagraí scríofa
I am advised by Revenue that there are 42,580 residential properties with deferred Local Property tax (LPT) liabilities for 2021. The overall deferred amount in respect of these properties is €10.30 million. The estimated interest accruing on these liabilities during 2021 is just over €0.40 million.
The interest rate to be applied to deferrals of LPT in the new ‘Valuation Period’ (2022 to 2025) is reduced from 4% to 3%, as provided for in the Finance (Local Property Tax) (Amendment) Act 2021. While it is not yet known how many residential property owners may defer their LPT liabilities for 2022, if the numbers remained the same as 2021, then the estimated interest accruing would be approximately €0.30 million.
As such, the overall cost of reducing the interest rate from 4% to nil for 2021 and from 3% to nil for 2022, based on current available data, would be approximately €0.7 million.