IMF urges Irish property tax

THE Government should impose a property tax to discourage people from owning more than one house, while tax breaks to help pay mortgage interest should be scrapped, according to an explosive new report from the International Monetary Fund (IMF).

The IMF, a leading global organisation that aims to foster economic stability and growth, said Irish people’s unusually high appetite for owning property meant there was no reason for the Government to provide artificial subsidies to the housing market, such as tax relief for mortgage interest. Some economists say tax breaks for buying property have the unwelcome effect of driving prices higher.

The IMF said it had advised the Government to bring in a new tax based on a property’s market value, which would help cool the market by making high-value properties less attractive. Property-based taxes are relatively common in many continental European countries.