Property levy takes the headlines but tax on old reliables will cost hundreds of jobs

Households across Galway are facing an average bill of almost €160 for the Property Tax next year, while publicans have been left “devastated” by the news that the price of a pint will increase by up to twenty cent, costing hundreds of Galway jobs in the process.

Yesterday, Finance Minister Michael Noonan revealed that homeowners will have to pay Property Tax at a rate of 0.18% from July next year.

That means that on homes valued between €150,000 and €200,000 – the value of an average house in Galway – tax of €157 will be due next year (as it is a half-year), and €315 in 2014 and 2015.

However, from 2015, Minister Noonan said local authorities will ‘take control’ of the tax rate, and can vary it 15% upwards or downwards to meet their local needs.

Motor tax rates – including those vehicles registered after July 2008 and are based on emissions – have also been hit hard.

The average 1.6 litre family car under the old system will cost €38 more per annum to tax, while on the emissions system could pay around €60 more.

While the Minister left the price of petrol and diesel alone, he hit the ‘old reliables’ – cigarettes went up 10c on a pack of 20 from midnight last night, 50c on a 25g of roll-your-own tobacco, while a pint of beer or cider will increase by 10c, a measure of spirits by 10c and a 75cl bottle of wine will jump by €1.

However, Terry Tyson of the Vintners’ Federation of Ireland in Galway said the price of a pint will actually increase by 20c, because of an increase imposed by Diageo three weeks ago, which many publicans did not pass on to drinkers.

He said publicans – especially those in Galway’s rural towns and villages – will be ‘crucified’.

“I’m astonished. We’re on our knees as it is. There will be some serious casualties both in terms of premises and staff. He’s hitting the old reliable again. It will absolutely crucify the pub trade.

“We put an alternative proposal before the Minister three months ago to increase duty on all off-sales by 15% - for health, revenue and social reasons.

“He seems to have completely ignored that. Three weeks ago, Diageo put up their prices by 10c, but an awful lot of publicans didn’t pass on that increase. That means a pint will now increase by 20c.

“It’s the biggest kick in the teeth we’ve ever gotten, and it’s coming at the worst possible time. This will cause even more pubs in Galway to close, and cost even more jobs,” said Mr Tyson.

See full coverage and comment in this week's Connacht Tribune.