Hogan: Govt working on 'more progressive' property tax

The Environment Minister Phil Hogan has said a more progressive and fairer property tax regime could be in place in 2013.

Mr Hogan said the Government has set up an inter-departmental group to examine how such a system can be drawn up.

He said the €100 household charge, which is being introduced next year, is only an interim measure.

Minister Hogan said the tax will be based on a homeowner's ability to pay and the size of their property.

He said: "We have set up an inter-departmental group in order to look at how we can have a fairer, more progressive property tax regime in 2013, 2014.

"We realise that the household charge is a flat tax, it is not progressive, but it is an interim measure. In line with what we have agreed with the EU/IMF, we have to go on to a more progressive property tax regime and that is what we are working at now."