Deputy Pat the Cope Gallagher has accused the Minister for Housing, Planning, Community and Local Government of dragging his heels in failing to progress plans for reforming the Commercial Rates.
The Donegal TD said the Department had given a commitment to develop proposals to modernise and to make the current system fairer and equitable for all those who currently pay Commercial Rates throughout the country.
Having raised this matter last year with the Department, he said the now finds that the current position has progressed very little over the past 12 months and the prospects are no proposals will be made imminently by the Minister either.
Pat the Cope added the current Commercial Rate system is grossly unfair and is becoming a burden on many businesses especially in rural areas throughout Donegal.
“The current system is outdated and blunt in its approach – whereby properties are commercially rated and are levied thereafter at that value, regardless of turnover or business activity in the premises.
“The current system does not take into consideration the seasonality of businesses either nor does it take cognises of business location. Commercial Rates are a grossly unfair tax on business and are an inhibitor to job creation especially in rural parts of Donegal – the time is long overdue to reform and restructure this business tax in the interests of progressing job creation and business activity.”
He called on Minister Simon Coveney to prioritise the drafting of a Rates Consolidated Bill 2017, to further focus on fairness in levying of future rates allowing for the circumstances of the relevant businesses – referring to their location, seasonality of business and there business activity levels before putting in place any new taxes on business and employment.
“Small businesses and Enterprises are by far the biggest employers in our small towns and villages right throughout Donegal – it is clear these employers need a break from the burden of commercial rates as they are currently constituted, a new system needs to be put in place based on the principles of fairness, business activity levels and seasonality of certain commercial activities,” concluded Pat the Cope.
