Rates paid by businesses for services from local authorities have risen by almost half a billion euro in the last five years, it was claimed today.
A league table published by Ibec today showed rises in rate charges that were well above inflation and highlighted inconsistency between different local authorities.
According to the table, Limerick City Council has the highest rate of valuation - the rate at which it charges businesses for services. At a rate of valuation of €75.69, it is 66 per cent higher than the cheapest area, Kilkenny, which has a rate of €45.62.
Rates for all councils have increased over the past five years above the rate of inflation (18.5 per cent over the five-year period), Ibec said.
The highest rises were Galway County Council, with a rise of 54 per cent, followed by Meath County Council (48 per cent) and Kilkenny County Council (47 per cent).
Brendan Butler, Ibec's director of enterprise, said income to local authorities from commercial rates had grown from €580 million in 2000 to more than €1 billion in 2005.
"It is understandable that many companies now view rates as a stealth tax given that they can rise irrespective of service provided, performance, value for money or inflation," he said.
According to Ibec the increases have occurred at the same time as services such as waste disposal, water supply and treatment and infrastructural development - which used to be covered by rates - have become charges in their own right.
Ibec also claimed rates were applied in an "inequitable manner" as only commercial properties were charged rates, with state properties, agricultural lands and households exempt.