‘Government must clarify property tax review’ – TD

FINANCE Minister Paschal Donohoe has declined to say when the Government will complete its review of the Local Property Tax.

Fianna Fáil finance spokesman Michael McGrath has claimed this delay is down to ‘wrangling within the Government itself’, adding to speculation that the Cabinet is divided about its future.

Mr McGrath last week asked Mr Donohoe when the review into the LPT would be completed. The minister said it was ‘being finalised’ in conjunction with a number of different departments.

The controversial tax was introduced in 2013 in the wake of the economic crash. The amount owed by the homeowner was calculated based on the value of their property at that point. The valuations were due to be revisited in 2016, but this was postponed until this year.

Both Taoiseach Leo Varadkar and Minister Donohoe have tried to allay concerns that the amounts owed by homeowners from 2020 would increase, due to the rapid rise in house prices.

Mr Varadkar said in December that work was being carried out to avoid a situation where anyone would face a ‘significant increase’, while Mr Donohoe said any possible future changes would be ‘affordable and predictable’.

Mr McGrath has once again called for the immediate publication of the review, saying that homeowners and local authorities wanted the future of the LPT outlined.

‘I can only assume this report is being delayed by wrangling within the Government itself. It is vital that local authorities and homeowners are given the certainty they need,’ the Cork TD told the Irish Daily Mail.

A spokesperson from the Department of Finance said the report will be ‘presented to the minister shortly’ and that any changes will be affordable.