Auctioneer chief: Property tax 'foolish'

The President of the Institute of Professional Auctioneers and Valuers says it would be very foolish of the government to introduce a property tax in December's budget.

Liam O'Donnell's comments come after a document to the Troika published on the Department of Finance's website last night stated that the Government plans to introduce a value-based property tax next year.

But the body representing auctioneers and valuers has described proposals as retrograde and say a new property tax will only put people off buying homes.

O'Donnell says if the Government does go through with this tax it will be resisted by the public.

"People who are in serious financial trouble at the moment cannot take any more taxes. I think it is very brave of them (the government) to introduce a property tax and it is terribly foolish of them.

"There's no money out there in the market. There is nobody spending money and the reason is because it is being taken away in taxes and jobs are being lost."