Holiday home tax ‘threatens tourism’

DOZENS of people who rent holiday homes in West Cork could be forced out of business by “double taxation”.

Holiday home tax ‘threatens tourism’

Already reeling from the downturn in tourism caused by the worldwide recession, they are now facing the prospect of forking out even more money to run their businesses, even though many already pay nearly €1,000 per year to register and run their properties.

West Cork Tourism is lobbying politicians in an effort to exempt the owners of rented holiday cottages from the Government’s planned tax on so-called second homes.

Paul O’Brien, general manager of West Cork Tourism, said he had received a number of representations on the issue from members who rent holiday homes in the region.

He said the government tax would seriously affect people involved in the tourism industry.

His members who register with Fáilte Ireland are obliged to pay a fee of €200. In addition, they also pay the local authority an average €224 for water and a standing refuse charge of €180 per annum plus 50 cent for every kilo of waste disposed.

A television licence, public liability insurance and other standard charges mean that those who rent out properties have to spend nearly €1,000 a year.

In a letter circulated to local politicians Mr O’Brien said he wanted to express in the strongest possible terms his members’ opposition to the tax.

Cllr Noel Harrington said the Government had to rethink its strategy and remove these people from the tax net.

“This could also prevent people from registering with Fáilte Ireland, which could in turn lead to a drop in standards,” Cllr Harrington said.

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