The Department of Housing, Planning and Local Government has come under scrutiny for failing to guarantee a revaluation of commercial rates in County Donegal.
Deputy Pat the Cope Gallagher raised the issue in Dáil Éireann on Tuesday, questioning why Donegal was not part of a countrywide commercial revaluation that commenced almost a decade ago.
Since 2009, a different county has been selected for revaluation – with Donegal not part of a full revaluation thus far.
Speaking on the matter, Deputy Gallagher said: “I questioned the Minister as to why Donegal was not part of the counties that were subject to a full revaluation.
“Whilst appreciating that the decision to conduct revaluations is a matter for the valuations office, the policy which prescribed that all 150,000 commercial businesses be set for a revaluation is a government decision.
“Therefore counties that are currently struggling economically and showing slower growth patterns should have been prioritised above other more successful counties,” added Pat the Cope.
“Commercial rates are a grossly unfair tax and are probably the greatest inhibitor to employment creation in rural Ireland at present.
“The system of rates is archaic and far too blunt an instrument for levying taxes on businesses, it does not take on board business turnover, business costs, duration of business activity or the profits or losses a business makes on an annual basis.
“The counties which have already benefitted from a revaluation by enlarge have seen a 35% to 40% reduction in the cost of rates levied on their respective businesses.
“That being said, the rates system is still wrong and I have raised this matter previously in the Dáil, the urgent need to reform the entire system of levying taxes on businesses in order to run local authorities but the Government is reluctant and unwilling to tackle this issue,” added Gallagher
“In his reply to me, the Minister informed me that Donegal would benefit from a revaluation commencing in late 2019, and it would typically take two years to complete.
“We are one of five counties which thus far have none been part of this process, the other counties being Kerry, Cork, Mayo and Galway.
“Whilst, the revaluation has now to take place, it is as I stated previously extremely late in the day. But, it can only be an interim measure because the system of commercial rates is flawed due to its unfairness as a tax.
“Unfortunately for the businesses alone, the revaluation is occurring at a period of increased economic activity, whereas those counties which were revaluated in 2011 to 2017 would have benefitted from a downturn in economic activities, which is a key matrix in setting new commercial rates levels.
“A better system of tax on commercial property and business must be introduced by a subsequent Government, and work has commenced on this by various political parties in the Dáil at present.”
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