Surveyors: Site value tax 'lacks transparency'

The Society of Chartered Surveyors (SCS) has welcomed the introduction of a property tax but said the Government’s approach "lacks transparency".

The SCS said that, while it was a positive that the money raised through the property tax will be ring fenced for local government investment, they are concerned at the lack of action on stamp duty reform.

The President of the SCS, Peter Stapleton said that while a property tax had a key role to play in broadening and stabilizing the tax base, to introduce it as a site value tax was contrary to the spirit of transparency in the market place.

Mr Stapleton said: "We note that the €100 flat charge is an interim measure for 2012 and we look forward to working with Government prior to the introduction of a longer term solution which is due to commence in 2013.

"Site value taxes are difficult for the general public to understand and contrary to the spirit of transparency in the market place.

"It seems counterproductive to assess a tax on this non-transparent basis when the Minister for Justice recently advised that he would be creating the new national property register under the Property Services Regulatory Authority.

"Such a register would greatly assist consumers and the State alike in forming the basis for a simpler assessment of market value rather than site value," Stapleton concluded.