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[Article] State 'takes €106,000' from every new home

01-04-2004 2:49pm

#1

Victor

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http://home.eircom.net/content/unison/national/2923323?view=Eircomnet

State 'takes €106,000' from every new home
From:The Irish Independent
Thursday, 1st April, 2004

THE Government gets €106,000 in taxes and charges on the price of every new house, it was claimed yesterday.

Fine Gael leader Enda Kenny said the tax-take on new-home sales had trebled in the past seven years, and 45pc of the price of a new house now reverted to the Central Exchequer.

Since the average new-house price was €237,000, this amounted to €106,000 in taxes and charges.

"New-home buyers are seen as a soft touch by this Government," said Mr Kenny. "They realise that the desire of young couples to get on the property ladder will make them less sensitive to the impact of increased VAT rates, new development levies and all the other charges and taxes."

Mr Kenny was launching a Young Fine Gael awareness campaign to highlight the "disproportionate impact of the different charges and taxes on young people" buying new homes. He described the Government as "clearly part of the house-price problem and not part of the solution".

The share of total Exchequer finances from new homes had increased from 3pc to 9pc in the last seven years; the take therefore had trebled in that time.

Mr Kenny quoted figures from the Irish Home Builders' Association; it had worked out the total tax-take as a percentage of the price of the house.

The tax take includes: 20pc capital gains tax on the sale of the site; 15pc land transfer tax; 9pc stamp duty on the site transaction; 37pc in income tax and PRSI; 12.5pc in corporation tax on profit; VAT at 13.5pc; and stamp duty at 3.75pc.

The total costs represents 45pc of the price of the house.

Clodagh Sheehy

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