ESRI: Income based property tax fairer

The ESRI has said that an income based property tax would be fairer than the current Household Charge and would raise the same amount of money for the government.

According to the independent think-tank, the Household Charge in its current form imposes the greatest burden on those with the lowest incomes.

It suggests that individuals on an income of less than 15-thousand Euro, and couples earning under 25-thousand Euro, should be exempt from paying a property tax.

Professor Tim Callan of the ESRI says according to its calculations an average household would face a property tax of 375 Euro a year:

"The tax is based on the value of the house but there is an income limit below which you wouldn't be asked to pay anything and if you had income slightly more than that you would have a reduced bill", he said

"But most people would pay simply on the basis of their house value, and that tax rate is about €375 for a house valued around €150,000"