CIF calls for a moratorium on residential stamp duty

The Construction Industry Federation (CIF) has today written to the Taoiseach requesting a moratorium on residential stamp duty until the next Budget.

It has outlined a range of measures it claims is needed to stimulate the construction industry and the Irish economy.

"The €10bn bank recapitalisation plan announced yesterday is extremely positive and provides a basis for the resumption of normal lending conditions in the economy," said CIF director general Tom Parlon.

"To maximise the benefits from this move the Government now needs to act quickly to reignite consumer spending and help the country recover from what is proving to be a deep and painful recession.

"A number of measures are needed, including a moratorium on residential stamp duty and increased spending on badly needed infrastructure."

The CIF’s proposals also include: the introduction of a first time buyer grant, fast-tracking of planning applications for one-off housing projects, the reinstatement of all cancelled NDP infrastructure projects, and a new grant to encourage homeowners to improve the energy efficiency of their existing homes.

"Getting the housing market moving again is the surest way of jump-starting consumer confidence and increasing Government revenues," said Parlon.

"As it stands there is at least €1.3bn in VAT tied up in unsold new homes. Movement on both the new and second hand markets would create badly needed employment in sectors such as surveying and within law firms and would significantly boost consumer spending on household goods.

"Clearly, stamp duty is a major barrier to transactions in the second-hand market and suspending it until the next Budget would encourage people to take advantage of the available value.

"The Government should also introduce a grant for first-time buyers that would partially off-set the 13.5% VAT that is paid on new homes. Again this measure would only be available up until the next Budget."