Plans for a new property tax, which would replace stamp duty in Ireland, has been recommended by the National Economic and Social Council

Currently the state picks up the stamp duty levy on property transactions that falter.

However, the Council has suggested a continuous tax paid by all property owners would prove more equitable in the long term.

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A change in the current system would alleviate financial constraints and instability on the public purse, according to the Council.

The body said government spending should continue to be injected into infrastructure, roads and training, despite the current economic slowdown.

The Council has called on the Commission on Taxation to consider the proposals.

The plans have faced criticism from some within the government.

Social Affairs Minister, Mary Hanafin, said it was a very sensitive topic and she did not envisage the government supporting such a move in the future.

The Minister added she personally would not like to see property tax introduced to replace stamp duty on house sales.

(PR/JM)