Chamber Cautions City Council Against LPT Cut
Dublin Chamber has cautioned Dublin City Council against cutting Local Property Tax (LPT) by 15% again in 2021, warning that it could potentially lead to an increase in commercial rates when the final budget is agreed later this year.
Councillors have the power to vary LPT by up to plus or minus 15%, and Councillors in the City have chosen to reduce it by the full permissible 15% every year. The Chamber has consistently argued that this can result in businesses picking up the tab later in the year, and that a more holistic and joined-up approach to budgeting is needed. The commercial rates waiver remains in place for almost all businesses until the end of September 2020, but the possibility of a rates increase next year cannot be ruled out, especially if the full LPT cut goes ahead.
In a submission to Dublin City Council this week, the Chamber argued for a more modest reduction in LPT in 2021. Commercial rates are too often treated as a balancing item in
Local Authority budgets. With many businesses still reeling from the impact of Covid-19, and many more uncertain of their future, Councillors must not repeat this short-sighted approach.
Dublin Chamber members throughout the Dublin region are encouraged to contact their local Councillor and make the case for budgetary foresight to avoid an increase in commercial rates at this difficult time for businesses.