New “Service Charge”

The majority of households will have to pay a new combined water and property charge of approximately €100, though the exact details are yet to be announced. As reported in the Irish Independent, the charge could range from €100 to €200 but the more likely outcome is closer to €100 with a few exemptions. For those in the rental sector, it will be landlords who foot the bill as the charge applies to property owners. However it is expected that they will pass on the charge to tenants through increasing the rent. Whether or not this is a good idea is up for debate as it may mean that those on lower incomes or social welfare will not be able to afford housing. Anyone who doesn’t pay will be penalised. People may be wondering why they have to pay another tax, especially after the renegotiation of the EU-IMF bailout deal. Transport minister Leo Varadkar has said that regardless of any crisis, our budget deficit still has to be reduced. Grants to local authorities and councils to provide services such as sewerage and road maintenance will be cut with the new tax filling the resulting gap. This is a precursor to a full property tax and water charges. It will take years to roll out, but water meters will have to be installed in every house. There will be a basic amount free but if you go over that you will have to pay a charge. As for the property tax, it will be based upon the house value or its size. The opposition are expected to challenge these measures.