OECD chief backs property tax to address housing supply
The Secretary General of the Organisation for Economic Co-operation and Development has said he favours a recurrent land tax, or a property tax, in order to address housing supply.
Speaking on RTÉ's News At One, Angel Gurría said: "I'm talking about a recurrent tax on the value of the assets that you have, which typically have to be updated/upgraded, ideally every year.
"So basically, if you are going for property taxes, do it on the basis of realistic values, and then upgrade those values over time, so that they do not fall behind."
He also said there are well located pieces of land in Ireland that are underutilised and suggested some rezoning of land for residential purposes.
When asked about the Irish courts being too slow at repossessions, Mr Gurría said: "Mortgages are no exception; they are a loan like any other loan.
"On the other side, if in some cases because of the social vulnerability of some groups the State would decide to support some of these groups that has to be specifically addressed; specifically decided - it has to be an expenditure decision by the people who approve the Budget, which are the parliament."
He added this needs to be explained to the taxpayer that they may have to support their fellow country men and woman.
He said: "Don't try to do social justice in the courts and don't do social justice in the banks. The question is who does what here?"
Mr Gurría also said his organisation is still on track to publish an interim report on taxing the digital economy next month.
He said that taxing the digital economy is not about targeting individual companies such as Apple or Google, but about how an increasing digitised economy will be taxed as the entire world is going digital.