Meanwhile, the Minister for Public Expenditure and Reform has accepted that a property tax based on market value could create a rural-urban divide.
However, Brendan Howlin said the Government is looking at ways to make the new property tax as fair as possible.
Mr Howlin said a final decision on the tax has not been made and Government discussions are still under way.
Minister for Finance Michael Noonan yesterday rejected an IMF proposal for a property tax of 0.5% of market value.
Mr Howlin also rejected that figure and said it will be a "much less impactive tax".
When questioned about a property tax based on market value rather than site value, Mr Howlin accepted there were issues of fairness that would need to be addressed.
"There is a property tax in every other European country that I've looked at and that's what the Troika demand we put in place in here," he said.
"There will be issues of fairness that must be addressed and all of that will be addressed before we publish the details of our scheme."