Harris pushes developer tax reliefs as Donohoe rejects return to Celtic Tiger-era incentives
Tánaiste Simon Harris signals support for targeted tax reliefs in October budget, but Finance Minister Paschal Donohoe remains firmly opposed. File picture
The Tánaiste and the finance minister are at odds over the introduction of tax breaks for developers, as Simon Harris said targeted reliefs are planned for October’s budget.
Mr Harris said he was “open to considering” some form of tax break for developers in the upcoming budget.
“I’m only open to considering if it is very targeted, if it is fully focused on viability issues and if we are crystal clear, that’s it, get on with it, build the homes, build the apartments,” Mr Harris said, speaking on .
Mr Harris said the Government could not continue to make constant changes to housing policy, as the sector needed certainty. He said one or two major changes could be introduced around the budget.
“Then, the sector needs to know, that’s it. Get on with building the homes our people need,” he said.
Despite the Tánaiste’s pitch for the tax reliefs, finance minister Paschal Donohoe said his view on developer tax breaks was unchanged.
“The Tánaiste and myself are really clear on the importance of building more homes in our country, how important that is to meet the needs of our society and how important it is for the future of our economy as well,” Mr Donohoe said.
“There are always and have always been supports in place to allow those more homes to be built, but both of us are very much aware of the risks and dangers of the past in regards to it. Our view on that is unchanged.”
In February, Mr Donohoe rejected the prospect of Celtic Tiger-era tax breaks for developers, highlighting the damage they caused to both the Irish economy and the housing market.
“What I am not going to do is reintroduce or propose the very tax reliefs that did such harm to our economy and then the building of homes for many years in Ireland,” he said, speaking in Brussels.
Mr Donohoe said he did not believe tax break policies would help the Government make progress on tackling the housing crisis.
The prospect of some form of tax relief for developers has been floated in recent months as a possible solution to the shortfall in apartment construction across the country.
