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class="MsoNormal">The International Monetary Fund (IMF) says the rate of the new property tax should be twice what the government is currently suggesting.

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class="MsoNormal">In its latest report on the Irish bailout the IMF says 0.5% is a suitable figure for the tax which is double the 0.25% figure put forward over the weekend.

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class="MsoNormal">It would see the owners of a €200,000 home paying a tax of €1,000.

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class="MsoNormal">It is also putting pressure on the government to clamp down on social welfare payments and is urging them to introduce means-testing for child benefit.

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class="MsoNormal">The IMF says scaling back benefits – including unemployment payments, medical cards, subsidised college fees and the household benefits package – could generate significant savings for the government.

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class="MsoNormal">This is the 7th report from the IMF.

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class="MsoNormal">It warns that public debt here is high and growing, that the banking system is not functioning properly, households are contending with heavy debt and depleted wealth as unemployment remains high.

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class="MsoNormal">The body urges the body to introduce a value-based property tax next year and that it be set at 0.5% of the house value.

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class="MsoNormal">The Taoiseach has said however that the government is not obliged to accept the advice of the IMF.

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class="MsoNormal">Newstalk’s Business Editor Ian Guider has been examining the report.

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class="MsoNormal">He says the IMF sees the property tax as key to improving the tax take.

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class="MsoNormal">Read the full report href="http://www.imf.org/external/pubs/ft/scr/2012/cr12264.pdf">here

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