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Finance (Local Property Tax) Bill 2012: Second Stage

Vote from 14/12/2012

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Deputy Michael Noonan:

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Background information

Deputy Michael Noonan:
'The introduction of a value-based property tax is part of our obligation under the EU-IMF programme In the latest memorandum of understanding between the Government and the troika, a commitment was given to introduce the tax in budget 2013 The introduction of a property tax has been a condition of the programme since it was first negotiated in November 2010, under the previous Fianna Fáil Government It has remained a condition of the pro- gramme following subsequent reviews which are agreed by all programme partners These measures are deemed necessary to reduce further the deficit in the public finances and ensure continued adherence to fiscal targets set as part of the EU-IMF programme. It is true that the Government has some scope within the programme to use alternative methods to achieve pro- gramme targets However, the yield anticipated from the local property tax could not otherwise have been achieved without significantly reducing overall expenditure on vital public services or increasing taxation on incomes and spending.'

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