Minister urged to tackle stealth tax

The Minister for Finance needs to address stealth taxes in the Budget, the Construction Industry Federation (CIF) has said.

The federation said the housing industry was suffering a "massive assault" from local government, with new development levies raising the cost of new homes by between €6,000 and €20,000 per unit depending on location.

The federation said this development would jeopardise the industry's track record and would have adverse consequences for jobs, Exchequer revenues and economic activity generally.

The federation called for a reduction in stamp duty from 9 per cent to 6 per cent. The increased stamp duty rate on commercial transactions (from 6 to 9 per cent) in Budget 2003 was counterproductive for government revenues, it said.

The CIF also called for a comprehensive review of stamp duties generally.

The CIF said it would be in favour of a decision by Mr McCreevy to spend 25 per cent of the National Pension Reserve Fund on infrastructural development.

It said the Government should abolish the 2 per cent insurance levy which is collected as part of general taxation.

ICT Ireland, the high-tech lobby group that is part of IBEC, the employers' group, has said that unless Mr McCreevy reintroduces Section 481 tax relief for the film industry, it could face "extinction".