Household charge to run for two years

Updated: 15:54, Tuesday, 26 July 2011

Environment Minister Phil Hogan has confirmed that the proposed new household charge will be set at €100 a year.

1 of 1Household charge - 'Ghost estates' to be exempt
Household charge - 'Ghost estates' to be exempt

Environment Minister Phil Hogan has confirmed that the proposed new household charge will be set at €100 a year, payable next year.

He said it would be an interim measure for two years, pending the introduction of a property tax. Mr Hogan said the levy was separate to water charges which would be payable by 2014 and would yield around €160m.

Those receiving mortgage interest supplement will not have to pay the charge, nor will those living in social housing or so-called 'ghost estates' Commercial property will also be exempt, as will premises owned by a charity.

Minister Hogan also said he intended to facilitate households in paying the charge over a number of instalments.

Speaking at the MacGill Summer School, ICTU general secretary David Begg said he was not surprised by the announcement, but that he would favour a site charge.

Professor Phillip Lane of the Department of Economics at TCD welcomed it as an intermediate measure and said he would favour a move to a charge based on the value of people's assets.

UCD economist Colm McCarthy said the charge was necessary as an intermediate measure because of the difficulty in re-introducing domestic rates. He said he hoped it would be collected with TV licence fee to reduce the nuisance to people.

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