Families across Galway are already “to the pin of their collar” and cannot afford to pay “hundreds of euro in extra taxes from next year”.
This is the view of Fianna Fáil agriculture spokesperson and Galway West TD Éamon Ó Cuív. His comments follow reports that the Government has made a deal with the troika to introduce a property tax based on market value from January.
Dep Ó Cuív said the Government must “be honest with householders about the property taxes they are facing next year” as homeowners “are genuinely worried about how they will pay these taxes”.
Dep Ó Cuív has accused the Government of causing “great distress and confusion” by “reportedly agreeing a deal with the troika behind closed doors, instead of being up-front and honest with householders”.
The Connemara based TD said a property tax based on value would be “very unfair on householders” given that it is “extremely difficult to provide a real assessment of property values”.
According to Dep Ó Cuív, a system like this fails to take into account the extent of the mortgage crisis. The latest CSO figures published this week show that 10.9 per cent of all mortgages are in arrears of more than 90 days.
“Such a tax would also be extremely unfair on pensioners who live in more valuable houses but are on very low incomes.,” he said. “Such a system would only assess the value of their property but not their ability to pay. I am also concerned that such a tax would inflate rents, as landlords seek to recoup the charge by imposing higher rents. Has the Environment Minister discussed this with the Minister for Social Protection to decide whether rent allowance will be increased accordingly?”
Dep Ó Cuív has also accused the Environment Minister Phil Hogan of sitting on an expert report on property taxes for some time.
“I am urging him to publish this without delay, so people can see for themselves the options that are available,” he said. “After the mess over the household charge, homeowners deserve some honesty from the Government about what is coming down the line
