The PIBA has used its pre-Budget submission to ask for the temporarily abolish Stamp Duty from June and reintroduce it gradually over the following 12 months.
Under the proposal by the country’s largest group of independent brokers, buyers would avail of 100% relief in the first quarter, 75% in the second, 50% in the third and 25% in the final quarter.
PIBA believes such a move would kick-start the housing market, before returning to the full amount after the 12-month period.
The group predicts that the State would lose out on approximately €478 in Stamp Duty revenue, but that does not account for the money that would be collected after the initial exempt period would expire.
PIBA says that the Government had expected to take in €1.53 billion in Stamp Duty by the end of this year, but Exchequer figures at the end of February showed that Stamp Duty and Capital Gains Tax revenue was down €613 million.
The submission states: 'If 50% of this deficit was residential related, it is clear that the contraction in house sales was the cause of the drop in revenue.'
The group insists it is not looking for an end altogether of Stamp Duty, but rather a measure that would help stimulate the housing market in the midst of the current slump.