THE LABOUR Party chairman has expressed concern that the incoming property tax could be deducted directly from PAYE workers’ wages, arguing that owners of multiple properties tend not to fall into that category.
Galway East TD Colm Keaveney yesterday warned the tax to replace the contentious household charge will be resisted if it is not shown to be fair. Mr Keaveney said he interpreted the new property tax as an “incremental introduction of a wealth tax”.
“Not everybody’s a PAYE worker. If it’s a wealth tax, and it’s to be the first step into a fair and just wealth tax, I fail to see how PAYE would be the way into it,” he said.
“The vast majority of people in the country who are considered wealthy . . . wouldn’t be PAYE workers. Multiple property owners who are not PAYE workers have amassed their wealth through property.”
Mr Keaveney said the fairest mechanism would have to be considered.
“There will be resistance. People want to hear how it’s going to be fair rather than how it’s going to be ‘revenued’,” he said.
A recommendation on how best to collect the tax will be contained in the report due to be presented to Minister for the Environment Phil Hogan by an interdepartmental group chaired by chairman of the National Competitiveness Council and former senior civil servant Don Thornhill. The report, which has been delayed for some months, will also recommend which categories of people should be exempt.
A spokeswoman for the Revenue Commissioners said it would be inappropriate for her to comment on a Sunday newspaper report that the agency would be given the power to take money directly from source.
However, a well-placed source last night confirmed that such an initiative was planned.
Mr Hogan’s spokeswoman said he would study the report as soon as it was presented to him, “and then it’s a matter for Cabinet to make decisions”.
The €100 household charge was introduced as an interim revenue-raising fee until a graduated property charge was drawn up. The tax could be as high as €3,000.
Fianna Fáil environment spokesman Niall Collins last night said it would be impossible to achieve a property tax that was equitable at present. Referring to difficulties experienced collecting the household charge, he said: “People who have paid it are to the pin of their collars. There’s a sizable number of people who haven’t paid it.”
He added: “Roll-out of a full property tax in this country will be highly contentious. To achieve equity in the current climate will be impossible.”
