The Cabinet has agreed that owners of new homes built since 2013 will now have to pay Local Property Tax following a decision to finalise the new €3.5 billion Economic Recovery Plan.
Another change will see about 33% of people who already pay property tax having their tax bill increased by around €100 every year. An estimated 3% of homeowners will see a bigger increase and around 60% will see no increase.
Taoiseach Micheál Martin said the objective of the plan will be fair and affordable and that to continue putting off any recalibration of the tax would be more difficult when inflationary pressures were considered.
Minister Donohoe said all homes will be re-evaluated in November this year as part of changes to local property tax. He said that local property tax changes will raise approximately €560 million compared to the current €480-490 million being raised.
In other measures, the Pandemic Unemployment Payment (PUP) will continue at its current level until September 2021. The 9% VAT rate for the tourism sector will also remain until September 2022 as part of the plan.
Read full article: RTE.ie