Laois councillor demands reversal of concrete block tax

A Laois councillor is demanding a reversal of the proposed tax on concrete blocks, saying it will hit first time buyers.

Fine Gael Cllr Barry Walsh, a quantity surveyer, says the proposed 5% levy on concrete blocks will just be passed on to buyers.

"Any of the costs will be passed onto the end user. It's not fair on first time buyers. I'd like to see it gone altogether. We need to give them a chance. Maybe offer exemptions. People are under pressure to get houses built.

"In the north you get a VAT exemption on building, I've been asking for this for a long time. You get the tax back in other ways, through trades being busier. It's naive to think manufacturers will pay, it's the end user," Cllr Walsh says.

He tabled a motion to the October meeting of Laois County Council, to ask the council to contact the Department of Finance "to reconsider the implementation of the levy to be applied on all concrete products".

"If the levy is to remain in place perhaps a rebate or exemption could be considered for first time new home builders and buyers," Cllr Walsh suggests.

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Cllr Willie Aird seconded the motion.

A letter will now be sent.

The levy, initially set at 10% but reduced due to widespread objections, is expected to raise €32 million annually to offset some of the State’s expected €2.7 billion bill for recompensing homeowners who bought houses built with faulty concrete contaminated with the mineral mica.  It comes into effect next September, and applies to blocks and pouring concrete but not precast, to protect industry exports.