Plans to introduce a new value-based property tax have been announced by the Irish Government, according to the Irish Independent.

The proposal has been put forward with finalisation of details scheduled for 2012.

The €100 charge, costing families approximately two euro a week, will raise €160m a year to fund local services including fire and emergency services, libraries and leisure facilities.

Speaking to the newspaper, Phil Hogan, Environment, Community and Local Government Minister, said: "A full property tax, requiring a property valuation system, will take time to implement, so the Government is introducing the interim household charge to apply to the majority of owners of residential property in the State.

-- Advertisement --

"It is essential if we want to continue to have the level of local services we expect, such as fire and emergency services, well maintained streets, public parks, waste services, libraries, open spaces and leisure facilities, that we provide the necessary financial resources to pay for them."

Social housing and ghost estates will be exempt from the charge. It is not yet known how unfinished housing estates will qualify.

"I have also introduced provisions in the Bill to protect vulnerable groups in society by providing a waiver for those on mortgage interest supplement and those residing in certain unfinished housing estates," added the minster.

The proposed levying of a €2 per week, may pose a challenge to some lower income households, and may even deter new house buyers from entering the market.

Horgan noted that the Bill will provide details outlining the need to implement a payment instalment plan for those who this additional cost may hinder: "I understand that the introduction of the household charge, even though modest at less than the equivalent of two euro a week, represents an additional cost for homeowners so I have provided in the Bill that it may be paid in a number of instalments."

(HMcE/GK)