FF stamp duty policy:Fianna Fáil will today announce measures aimed at stabilising the housing market following weeks of speculation that stamp duty is to be reformed.
Since last September the Progressive Democrats have promised to substantially reform the tax if re-elected. In their joint election tax policy statement both Fine Gael and Labour agreed to change the implementation of the tax so that first-time buyers would pay no tax on houses up to €450,000. Under their plans, zero per cent would be paid up to the first €100,000 of a house price, 3 per cent on the next €350,000 and 9 per cent on the balance. The present system requires the rate of stamp duty relevant to the price of the house to be applied to its entire price rather than just the portion above the threshold.
Addressing a Fianna Fáil election briefing on tax policy yesterday, Minister for Finance Brian Cowen attacked Opposition proposals to reform stamp duty, which he said were destabilising the market, and indicated that Fianna Fail would introduce measures to "stabilise the market". He said: "They're not good for the industry going forward and tomorrow, in our manifesto, we'll bring our own position to bear on that, to bring clarity and certainty as to what our position will be if re-elected."
A senior Government source told The Irish Times yesterday that any reform of the tax system as it applied to the housing market would focus strongly on first-time buyers and that the argument to extend reform to the second-hand market was being resisted.
According to the latest house price index, house prices fell in March.