Taoiseach Simon Harris said today (Wednesday, August 21) that he believes inheritance tax is hitting farmers “disproportionately”.
Speaking at the Virginia Show taking place in Co. Cavan today the Taoiseach said: “I’m very clear that when it comes to inheritance tax, we need to act on this, I’d like to see action in the budget.
“I’ll certainly be ensuring there’s action in my party’s manifesto in relation to this because inheritance tax is hitting people, both in terms of families trying to pass on a home but It’s also hitting farmers’ disproportionately as well”.
He also acknowleged that there is a challenge when it comes to generational renewal and succession in farming in Ireland.
The Taoiseach highlighted that the Minister for Agriculture, Food and the Marine, Charlie McConalogue has “set up a task force and a commission to look at issues in relation to generational planning and succession.”
He said: “When I meet many farmers around the country, they tell me that they have anxiety and worry about how they successfully pass the farm on to the next generation.
“They tell me that their sons and daughters have so many opportunities and choices out there that it’s important that farming is maintained as an attractive career prospect for them.
“We have in the past, had retirement incentive schemes, I think in the nineties that worked quite well, he added”.
Taoiseach on RZLT
Commenting on the decision to defer the Residential Zoned Land Tax (RZLT) the Taoiseach said: “Government needs to do two things here, and they’re both equally important.
“We do need to have a tax in place in relation to land hoarding. That’s important. We do have a housing crisis.
“We also need to make sure that active farmers are recognised as active farmers and it is offensive to describe an active farmer as a land hoarder. “
The Taoiseach was also asked about the possibility of changing the reliefs on farmland to benefit the active farmer and said: “That’s certainly something we can give consideration to.”
He outlined that he would be meeting “all the farm organisatons” ahead of the budget and said that he was determined “that we use both the tax system and other methods to support farming, to support the family farm.”
“I understand, and I think the people of Ireland understand the difference between somebody hoarding land and somebody farming and producing a product.
“I think there’s been far too much in recent years of political and media debate talking down to farmers, suggesting that somehow or other, they’re part of all of the problems of the world, when in fact, farmers are the solution.
“They’re the solution to so many issues. They are the backbone of the economy. Yes, we have real issues around housing. Yes, we have real issues around climate. Both of those issues need to be addressed. Both of those issues can be addressed in a way that supports farmers,” the Taoiseach stressed.
He also said that he believes the RZLT is a “sensible measure”.
“It is important, though there isn’t an unintended consequence that hits active farmers and in fairness to the IFA and others, I appreciate their use of the phrase active, because, again, I think that provides an important differentiation between the hoarder and the farmer,” the Taoiseach added.