Finance Minister insists any changes to property tax will be 'moderate and affordable'

A review of the Local Property Tax is currently under way

Finance Minister insists any changes to property tax will be 'moderate and affordable'

Paschal Donohoe. Photo: Sam Boal/Rollingnews.ie

The Finance Minister has said any changes to the Local Property Tax will be moderate and affordable.

The charge is being reviewed at the moment, and is likely to increase in 2020.

The tax is based on property values, and there are fears charges could increase massively because of high property prices when compared with the last evaluation in 2014.

However, Minister Paschal Donohoe says they will introduce a system to make sure increases are moderate.

He explained: "When I bring the Local Property Tax review to conclusion later on in the year, we'll be outlining how we will do it.

"It's worth bearing in mind that the only thing that's changing next year is the valuation - people's bills next January will reflect the current valuation."

He added: "We are talking about changes that might take place in 2020 onwards - but they will be moderate, they'll be affordable, and they will be understood by people well in advance."

The most recent figures from the Central Statistics Office (CSO) show that residential property prices are 21.8% lower than the highest level in 2007.

However, prices nationally have increased by 74.6% since the lowest point in early 2012 - while in Dublin prices have increased more than 90% from their February 2012 low.