Senator Thomas Byrne.

A Fianna Fail senator has claimed that Meath property-owners will be faced with a post-Christmas "bombshell" when a new property tax based on the valuation of houses is introduced by the government.

Senator Thomas Byrne said that because Meath property values were substantially higher than other Leinster counties, it is likely that local families living in homes similar to those in neighbouring counties will pay substantially more property tax. He claimed this could be as much as 24 per cent in some instances.

The Cabinet has agreed that a property tax will form part of December's Budget and, while no firm decision has yet been made, it is expected that the tax will be based on the value of each house. Documents released last Friday revealed that the government had told the troika that the tax would be based on valuation. Still to be decided, apparently, is the rate of tax to be paid.

Finance Minister Michael Noonan said the new tax would be introduced next year in accordance with its agreement with the troika. "The detail of the property tax has to be worked out. All that has been decided is that there will be a property tax on family homes and that property tax will be collected by the Revenue Commissioners. Of course, I have a preference and I'll be stating it at Cabinet," the minister said.

To read the full story see this week's Meath Chronicle.