Government’s tax policy making the housing crisis worse – Pearse Doherty TD

Sinn Féin Finance Spokesperson Pearse Doherty TD has said the government’s tax choices have had a detrimental effect on the housing crisis.

Deputy Doherty was speaking as it emerged house prices have increased by over 10% in Dublin in twelve months. He said the Help to Buy scheme and the five-year Capital Gains Tax exemption for property funds must be scrapped.

Deputy Doherty said:

“The housing price spiral is now firmly established and the government’s tax choices have only made it worse. The result is less affordable housing for working people and greater profit for developers and speculators.

“The Help to Buy scheme and the five year exemption for property funds from the Capital Gains Tax element of the dividend withholding tax have both resulted in prices being higher than they would be otherwise. In both cases Sinn Féin opposed these moves and warned they would be costly. We have been proved right.

“When it comes to tax policy this government, like the last one, are making all the wrong choices and only making the housing crisis worse. The Help to Buy scheme is proving to be far more expensive than expected while we know the Department of Finance was warned that its five year Capital Gains Tax exemption would clog up housing supply. Both should be abolished.

“Tax policy has a role to play in alleviating the housing crisis but rather than carrot after carrot the government need to start employing the stick. Tax breaks to developers and international speculators will not solve the housing crisis.”