Gilmore denies clash over property tax proposals

A Coalition clash over how to impose new, higher property taxes has been denied by Tánaiste Eamon Gilmore.

Despite Colm Keaveney, Labour’s chairman, saying that “certain government sources” had leaked the idea the levy would be deducted at source from PAYE workers to avoid mass non-payment, Mr Gilmore insisted it was far too soon to start speculating on the issue.

Mr Keaveney expressed alarm at any such move, warning this would fall unfairly as multi-property owners were unlikely to be within the PAYE sector.

Mr Gilmore said it was far too early for concerns about the graded tax, which is due to replace the much derided €100 flat-rate household levy next year, being taken directly from PAYE.

The Labour leader tried to play down suggestions of any rift with Mr Keaveney, saying: “The chairman of the Labour Party has been expressing his wish that when the property tax is imposed it should be fair and equitable, and that is very much the view of the Labour Party.”

Mr Keaveney warned that the replacement tax for the household charge must be seen to be fair or it would meet with resistance.

Tensions between Mr Keaveney and the Labour leadership emerged last week when the chairman called for any second bailout to be put before the party’s membership before approval by the Government.

Such a move was viewed by many in the party as a likely trigger for Labour leaving the Coalition when any new bailout would be needed at the end of next year.

Siptu economist Marie Sherlock linked the idea of calculating the new property tax with household income.

“I have argued for a long time that a fair and equitable property tax can be put in place in Ireland if it’s properly structured.

“The key to its productivity and its being fair is that it has to be linked to household income.”