Minister should reconsider commercial rates on the same basis as Local Property Tax
Budget 2019 may be the last opportunity for this Government to reform commercial rates system
ISME, the Irish SME Association today (8th January) welcomes the comments made by Minster Murphy last weekend on the changes to the Local Property Tax. ISME stated in its 2018 pre-budget submission, property taxes based on current market valuations are volatile.
Commenting on this announcement ISME CEO Neil McDonnellsaid “Commercial rates (and LPT) which are pegged to and calculated on current market valuations, are subject to rapid change and unpredictable change. Such a policy is not a sensible basis for the levying of any tax. It serves only to penalise owners of private and commercial property in urban areas, particularly Dublin, Cork and Galway”.
“It is only logical that Minister Murphy reconsiders commercial rates on the same basis as he does LPT. Both taxes require an objective, predictable and fair basis for calculation, for example on site value. LPT revaluation has been kicked down the road for long enough.
“Budget 2019 may be the final opportunity for this Government to reform the system for commercial rates and LPT ahead of the next general election. Therefore we urge Minister Murphy to have viable proposals ready for next October.”