Monday 30 March 2009

Real Estate Alliance, today issued a warning to the Government on the potential negative impact of a property tax. Members of the property group have warned against any property tax instead advocating a property market stimulus, which could increase Government tax takings from property activity. Taking steps to boost confidence in the property market, rather than undermine it with further tax burdens, will help to get the market moving again benefiting all.

Any form of property tax has the potential to impact negatively on an already delicate market. Especially as the government have already introduced a €200 property tax in the last budget, just 6 months ago. Continuing to beat this horse may result in crippling a market that is on the precipice of recovery the group stated.
Suggestions for a market stimulus package included abolishing or halving stamp duty on all residential property for a set period of one year. Many members were citing what happened when capital gains tax was reduced from 40% to 20% and believe that a similar impact could be seen in stamp duty if the right stimulus package could be found. A reduction in stamp duty combined with the Government’s