Irish Water Tax to be introduced in 2014

A new tax on the private use of tap water is to be introduced in Ireland in 2014. This is despite the fact that most Irish homes will not have an actual water meter installed until 2016 at the earliest. A flat-rate fee will be introduced initially and will be based on the size of a property as well as the number of occupants.

Irish businesses already pay for their water usage but private homes do not, the funding for which comes from general taxation revenue. The new plans to install a water meter in every house in the country have, like the property tax, been greeted with dismay by a population that is already groaning under the weight of a huge and increasing tax burden. It is expected that average annual usage per home would cost approximately 400 euro (approx US$530), with heavier users paying more.

It is broadly accepted that there is a case for charging for water usage. Estimates put the wastage of usable water at over 50% from the country’s creaking and in many cases Victorian water pipes network. Owners of rural houses usually have to sink their own well or else join a water scheme while urban houses do not have any such expense so there is a real urban/rural divide on the issue.

On the other hand Taxpayers can reasonably argue that they already pay for water in their income and sales taxes and are entitled to ask just why they are being told to pay again.

Edited by Michael Green
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Michael Green Michael Green is Manager of The Information about Ireland Site

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