New property tax could be deducted from wages

New property tax could be deducted from wages

The forthcoming property tax could be deducted from peoples' wages, according to reports

The new property tax could be deducted directly from the wages of PAYE employees, according to reports in the weekend newspapers.

It is understood the Revenue Commissioners will have the power to take the money directly from source, while self-employed workers will be required to declare the tax in their annual assessment.

The move is designed to ensure a much higher level of collection of the controversial €100 household charge, which 42% of homeowners have yet to pay.

It is expected a new property tax will come into effect next year.

The Irish Times reported, however, that the Labour Party chairman Colm Keaveney is concerned about the method of taking money from peoples’ wages as owners of multiple properties tend not to fall into that category.

Mr Keaveney said he interpreted the new property tax as an “incremental introduction of a wealth tax”.

“Not everybody’s a PAYE worker. If it’s a wealth tax, and it’s to be the first step into a fair and just wealth tax, I fail to see how PAYE would be the way into it,” he said.

“The vast majority of people in the country who are considered wealthy . . . wouldn’t be PAYE workers. Multiple property owners who are not PAYE workers have amassed their wealth through property.”

Mr Keaveney said the fairest mechanism would have to be considered.

“There will be resistance. People want to hear how it’s going to be fair rather than how it’s going to be ‘revenued’,” he said.

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