People who are being squeezed by the cost of living are also being 'punished' by the Local Property Tax.

That's according to Dún Laoghaire People Before Profit TD Richard Boyd Barrett.

He was speaking as property owners could be penalised by Revenue for under-valuing their homes.

Figures show that around 54% of homeowners say their homes are worth less than €260,500.

While it is thought some 300,000 people haven't filed an updated LPT return.

Deputy Barrett told Pat Kenny this valuation is based on a broken market.

"The big issue is that we do have a dysfunctional housing market.

"The value of the house that you bought is not your fault.

"It is the result of a Government policy, and - worth saying - a failing Government policy.

"The stated objective of Government policy is to bring house prices down, supposedly, but they're rocketing up.

"But none of that tells you anything about the income and ability to pay of the house."

He says valuations based on areas where houses are located "may tell you nothing about the actual individual value of a house.

"But most crucially, huge numbers of people at the moment have seen their income cut in real terms because of rocketing inflation, prices of energy, general inflation, prices of basic goods.

"And now they're potentially going to be hit with a property tax increase.

"I just think it shows the fundamental unfairness of putting a tax on people's principal private residence".

'Punished with this tax'

Deputy Barrett says people are being penalised for factors out of their control.

"If you take an area like Dún Laoghaire, or most of Dublin - and most of the big urban centres - you will have people on very, very low incomes but who live in an area where - through no fault of their own - the value of their property is much higher.

"It's of no real benefit to them, the fact that their property is worth a lot of money, but they are punished with this tax because of it.

"And that comes at a time, particularly now, when they are being punished for many other increases in the cost of living.

"I just think this further highlights why it is just a fundamentally unfair tax".

And he believes there has been no benefit from the LPT to local communities.

"There's been no additional money available to pretty much any local authority - certainly not to ours - as a result of property tax.

"At the time the Government... sold the Local Property Tax as something that would lead to a benefit in terms of increased resources available for local services.

"But that actually hasn't happened".