Tax breaks should stay, says CIF
Mr O’Callaghan, one of the country’s biggest developers, disclosed yesterday that the €320 million development of the Mahon Point shopping complex has not benefited from any tax incentives.
Commenting on the current review of property tax breaks instigated by Finance Minister Brian Cowen, Mr O’Callaghan said yesterday on RTÉ’s Morning Ireland that tax breaks have done their job and it was time they were scrapped.
However, the CIF believes the deadlines for current scheme should be extended and that tax breaks should be maintained but modified.
The housing director of the Construction Industry Federation Hubert Fitzpatrick said that the urban and rural tax incentive schemes have been very successful in rejuvenating towns and villages around the country.
“A lot of good has been done over the years through urban and rural renewal schemes and with proper geographic targeting neglected areas that would never be developed could be reinvigorated socially and economically through tax incentives,” he said.
Mr Fitzpatrick said millions of euro worth of projects, essential to the development of neglected areas that are planned under current schemes, but delayed due to issues outside the control of the promoters should not be penalised and blocked from progressing because of the July 2006 deadline set for most schemes.
“Projects awaiting planning decisions are needed in the many towns and villages across the country and local authorities should act quickly to get the projects through the planning process to allow the projects get to the construction stage,” he said.
Finance Minister Brian Cowen said in his budget speech that the Department of Finance and the Office of the Revenue Commissioners will undertake a detailed review of certain tax incentive schemes and tax exemptions in 2005.
Mr Cowen said at the time: “My aim is to seek to improve the equity of the tax system taking into account the social and economic benefit of reliefs in delivering investment in housing, enterprise, urban and rural renewal, tourism, films and health facilities.
“Because of the complex nature of this issue, the interaction of such reliefs with economic activity and the unintended consequences that untimely action may have for investment, I want to ensure that I take the time necessary to strike a careful and considered balance in what I do."
