It has been revealed that banks and other financial institutions have generated nearly half a million euro in fees from home owners paying their LPT liability with credit cards.
Close to 200,000 people used a credit card to pay the property tax this year with a total of nearly €32 million collected in 2013, making up around 15% of the €215.3 million total taken by Revenue. Controversially, Revenue also told nearly 1 million people to pay their 2014 LPT liability by November 27th 2013 if they were paying with a credit card.
The amount of credit card fees is set to be even higher in 2014 with each property tax payment incurring additional, hidden interest charges of up to 1.49% per payment. A spokeswoman for Revenue said that the credit card charges are due to a statutory law and that the fee goes directly to the financial institution who issued the card.
Controversy and debate surrounding these credit card fees means Revenue will reassess the process in advance of the 2015 tax.