Doubts over sustainability of increased stamp duty

An Oireachtas report has raised concerns about predictions that increased commercial stamp duty rates will help prop up Government funding in years to come.

The report for the Oireachtas Budget Oversight Committee says it could not get sufficient evidence or data to conclude that the stamp duties were sustainable over a long period. The high-profile committee, as part of its budget scrutiny role, is now to recommend that Finance Minister Paschal Donohoe provide details on the duty changes introduced last year.

Commercial stamp duty was increased from 2% to 6% in the last budget, with estimates that it would provide increased revenue of €376m this year, implying total property transactions of €9.5bn. It was also tweaked by the minister to encourage development towards the residential sector.