- Property taxation policy running counter to the SDGs
- Commercial rates penalise those businesses which develop and improve town-centre premises
- Urban areas such as Dublin, Cork and Galway worst affected
- Real opportunity to reform commercial rates and local property taxes
ISME, the Irish SME Association was delighted to attend the All of Government Plan on Climate Disruption High Level Consultative Forum today Friday 18th January in Croke Park, which was hosted by Minister Richard Bruton.
Speaking following today’s Forum, ISME CEO Neil McDonnell said:
“One of the most egregious examples of taxation policy running counter to the Sustainable Development Goals (SDGs) is that of property taxes. Both commercial rates and Local Property Tax (LPT) have come in for sustained and justified attack over the last few years.”
The ISME CEO continued:
“Commercial rates penalise those businesses which develop and improve town-centre premises, and incentivise the development of out-of-town, rural, and suburban premises. Similarly, homeowners in urban areas, especially in Dublin, Cork, and Galway, are severely penalised by local property tax, despite being cheaper and more cost effective for their local authorities to service.
Thus both commercial rates and LPT in their current structures run counter to the Ireland 2040 plan, to the Government’s Sustainable Development Goals and move to a circular economy, and they encourage extensification.”
Mr. McDonnell concluded:
“The need to radically reduce our carbon footprint gives the Government a golden opportunity to reform commercial rates and local property taxes.”
ISME calls upon Government to consider reform of both rates and LPT, towards a system which incorporates a site value tax, or a square metre tax, or both.
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