The Green Party has told Agriland that an exemption must be made for active farmers under the Residential Zoned Land Tax (RZLT).
Minister for Finance Jack Chambers has said he is currently “exploring all options” on resolving the issues for farmland under the controversial tax.
He said that if a “viable alternative” emerges to deferring the tax – which is set to come into force on February 1 – then he would pursue that option.
Concerns have been repeatedly raised by farming organisations and politicians that the scope of the tax would take in sizeable portion of active farmland.
The RZLT will be applied at a rate of 3% of the land’s market value and is aimed at increasing housing supply by activating zoned and serviced residential development lands (including mixed-use lands) for housing.
RZLT
Last week it emerged that, after talks with ministerial and party colleagues in Fianna Fáil, Minister Chambers had proposed to defer the RZLT for one year to ensure active farmland would be excluded.
This proposal was welcomed by farm organisations and many politicians from largely rural constituencies.
However, there was opposition to the suggestion from Fianna Fáil’s coalition government partners, the Green Party.
“There is broad agreement across society that Ireland needs about 50,000 new homes a year if we are to solve the housing crisis and give our young people a chance of owning their own home.
“A vital part of reaching this target is the introduction of a tax on land that has been both zoned by councils for housing and serviced with infrastructure such as roads, water and electricity,” a Green Party spokesperson told Agriland.
“Such a tax would discourage speculators from sitting on land banks rather than building the homes that are so badly needed.
“The Green Party is clear that an exemption to the tax should be made for those farmers whose land has been both zoned and serviced but who wish to continue farming into the future.
The minister for finance has said that he will look at developing proposals to ensure such farmers can be exempted while allowing the tax to be commence in February 2025, as was previously agreed by all three government parties,” they added.
Minister Chambers has said that the mechanism and timeline for an exemption for farmers under the tax is subject to ongoing policy and legal advice.
He said that he will update party leaders on this in advance of the upcoming budget on October 1 so that the “unintended consequences of the tax can be addressed”.