Government urged to replace stamp duty with property tax

A LEADING Government think-tank has recommended the introduction of a property tax to replace stamp duty as a measure to counteract a major slowdown in the housing market.

The National Economic and Social Council has suggested that the Commission on Taxation — which is currently carrying out a major review of the Irish taxation system — should examine the possibility of replacing stamp duty with a more broad-based property tax. In a new report, the NESC claims such a tax would provide a “more sustainable and equitable” form of taxation on property.

“It may be possible to design a system of property tax which yields a less volatile revenue stream than stamp duties, which better supports an active housing market and high-quality physical planning,” the report states.