The Irish Farmers’ Association (IFA) is calling for immediate action by the government to resolve the Residential Zoned Land Tax (RZLT) issue for farmers.
The RZLT, which will come into force from 2024, is an annual tax that will be calculated at 3% of the market value of land “in scope” – which includes land zoned for residential development and land that could be connected to services.
The government previously said that it was introducing the new tax to “activate land for residential development throughout the country”.
President of the IFA, Tim Cullinan said: “The government must act now to fix the issue where genuinely farmed land is included in the Residential Zoned Land Tax.”
Last month, Taoiseach Leo Varadkar said that the RZLT will be “modified” to address “anomalies” that have arisen in relation to land that is actively farmed.
At the time, the Taoiseach said: “This tax was introduced to penalise people who were hoarding land during a housing crisis. It now appears to be affecting 100 or possibly 200 landowners who are not land hoarders.”
The IFA raised the matter at the National Economic Dialogue at Dublin Castle yesterday (Monday, June 12).
“It was encouraging to hear a number of government ministers confirm to IFA that this issue will need to be fixed, confirming what An Taoiseach Leo Varadkar said in the Dáil on May 9 last,” Cullinan added.
“The government should bring forward the required changes to this legislation as soon as possible.
“Many farmers are very worried about the impact this tax may have on their farm and family and it is not fair for them to have to continue under this level of stress any longer.”
IFA Farm Business Chair Rose Mary McDonagh added: “As previously stated, we are ready to meet and work with government to find an equitable solution to this issue.
“From IFA analysis, using the average price of zoned land outside of Dublin, farmers could face a tax of over €2,600/ac/yr under the current legislation which is totally unfair and unequitable.
“The means of identifying genuinely farmed land are available and must be used,” she concluded.