PBP says Local Property Tax needs to be abolished

PBP says Local Property Tax needs to be abolished

Local Property Tax is “regressive”, “unfair” and has failed in its purpose according to People Before Profit Galway, calling for its abolition after the city council voted to keep LPT at the same level.

Galway City Council rejected a proposal from the executive raise the Local Property Tax by 7.5%, with all 18 councillors voting to keep it at its current level.

Local PBP representative Joe Loughnane described the Local Property Tax as “inherently regressive” saying that it takes “absolutely no consideration of income or personal wealth”.

Loughnane was critical of city councillors decision to keep the LPT at its current level saying “Of the current 18 councillors, none of them proposed to reduce it.”

“After this week’s vote, some of them acknowledged on social media that it is an unfair tax, yet they voted to retain it.”

“Local authorities complain about their limited powers, but this is one concrete way in which they affect the pockets of people in Galway.”

He then accused the LPT of failing to increase funding for local services or to dampen the property market.

Chief Executive of Galway City Council Brendan McGrath reportedly told the council that a 7.5% increase in LPT would raise an additional €620,000 in revenue for the city each year.

Loughnane said that LPT is an “unfair and failed” tax which should be abolished in favour of a centralised system.

“An increase in investment in local and public services should be financed through progressive central taxation and in particular by taxing the profiteers and speculators who are making obscene profits from the current housing crisis and paying almost no tax,” Loughnane concluded.

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