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overnment plans to
introduce a vacant site
levy to prod house
builders into action could
end up being counterproductive, with Keith
Lowe of estate agents DNG warning
that the tax could even push some
developers over the edge.
Under the Planning and Development No 1 Bill, published in
November, the Department of the
Environment, Community and
Local Government proposes that
local authorities apply a charge on
vacant sites in urban areas; the idea
being to incentivise and stimulate
development.
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Moran.
He recommended the government reflect on the existing property tax and consider in the longer
term the introduction of a site value
tax, which he said would ultimately lead to much more intelligent use of land.
Any tax should be introduced
gradually, he added, to allow the
market to adjust to the new reality.
Fitzpatrick said that there are
other ways government might
make development of land viable
such as addressing infrastructural
deficits or reducing development
levies where it is not possible to fund
the development. It could be
through the reduction of various
other taxes that apply to construction, he said.
The governments Construction
2020 strategy does encompass
measures to incentivise housing
construction including retrospective application of reduced contributions applied after development
and use it or lose it provisions for
planning permissions.
The SCSI is recommending a
reduction in VAT on new homes
from 13.5% to 9% for two years. It
worked in the tourism sector and
created jobs, and would improve
viability and encourage more development in areas where demand is
greatest, said ODonovan.
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