Irish Finance Minister Paschal Donohoe rejects calls to reinstate tax incentives similar to those that fueled the property boom, citing their damaging impact on the economy and housing market. He emphasizes the need for alternative strategies to boost housing supply, such as infrastructure improvements and planning reforms. Donohoe also addresses concerns about potential US tariffs on European imports, urging the EU to pursue a negotiated solution.
Minister for Finance Paschal Donohoe stated his opposition to the reinstatement of tax schemes similar to those prevalent during the property boom. He emphasized that such schemes had inflicted significant harm on the Irish economy and housing market. Speaking in Brussels on Monday, Donohoe asserted his unwillingness to reintroduce tax reliefs that had detrimental effects on both the economy and the construction of homes in Ireland for many years.
He acknowledged the challenges in effectively targeting any potential new incentives, expressing his belief that these policies are not the means to advance the construction of more homes. Section 23 tax breaks, which allowed investors to offset rental income by purchasing new properties for rental purposes, are widely criticized for contributing to the development of homes in unsuitable locations and fueling excessive lending. This scheme was abolished in the aftermath of the financial crisis. Fianna Fáil is reportedly advocating for incentives to stimulate private-sector investment, proposing measures that would be more restrictive and targeted compared to the Section 23 scheme. Donohoe, however, highlighted alternative approaches the government could employ to increase housing construction. He stressed the need for enhanced infrastructure, improved energy and water supply for new developments, and a reevaluation of planning frameworks.These statements precede a Cabinet committee meeting on housing scheduled for Monday, where disagreements within the Coalition regarding housing policy may surface. Donohoe's remarks were made during a Eurogroup meeting of EU finance ministers in Brussels. Turning to concerns about US President Donald Trump's potential imposition of tariffs on imports from Europe and other regions, Donohoe acknowledged Ireland's vulnerability as an open trading economy. He emphasized the need for the European Union to explore a negotiated solution with the White House to avert tariffs. Trump has directed officials to prepare reports on US trade with various countries, raising fears of more extensive tariffs beyond those announced on steel and aluminum imports. Donohoe stated that the EU would respond firmly and proportionally if Trump imposes steep tariffs on goods originating from the EU
Housingcrisis Taxbreaks Fianna Fáil Fine Gael Donohoe Trumptariffs Eutrade
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