Local Property Tax bands will be maintained at their current rate along with plans to freeze VAT on gas and electricity until the autumn, as a welcome relief to families concerned about a raft of household costs that are rising from this month.
In terms of LPT, the vast majority of homes will not move up a band. Minister for Finance Paschal Donohoe will outline two interim measures to ease pressure on households.
The next valuation date for LPT is due in November amid a revaluation every four years.
CSO stats show that property prices increased by a national average of 23% in the period from November 2021 to the end of last year.
This would mean a leap of nearly a quarter in reckonable values of people’s homes, with an impact on LPT.
If the revaluation were to proceed this autumn without any amendments to the bands or rates, approximately 70pc of properties would move up at least one band for LPT.
With these changes in place, 97% of properties are predicted to stay within the same band, with only 3% predicted to move up by one band.
For the majority of homeowners, their new annual charge will still be between €5 and €25 higher, depending on their property’s value, amid rising house prices across the board.
The new Programme for Government commits to “fairness and stability in Local Property Tax payments and to continue to retain revenue collected locally in the same local authority”.
Minister Donohoe is also bringing a proposal to Government seeking approval for a six-month extension for the special 9pc Vat rate on gas and electricity which is due revert to 13.5% on May 1.
