The government should do a “complete u-turn” on the Residential Zoned Land Tax (RZLT) and acknowledge it has “got it wrong”, according to a senator.
The controversial new tax, which is scheduled to come into force from next February, has met with strong opposition from farming organisations who have described it as “a land grab and revenue-generating instrument”.
According to Senator Victor Boyhan, the tax, which is being introduced as part of the government’s Housing for All plan to 2030, has generated a “huge backlash” in rural communities.
The RZLT will apply to land that is designated as “in scope”, which includes land zoned for residential development or land that is “serviced”, and it has access to the infrastructure required for residential development.
Farming organisations have warned that farm families could potentially have to pay €450/ac from next year on land which is in scope and as a result, the new tax could force families to sell land that has been in their generations for years.
Senator Boyhan told Agriland that his Oireachtas office has received a “high volume of queries on the RZLT in recent weeks”.
“Many farmers feel the tax is indicative of a growing disconnect by government policy advisors to the needs of rural Ireland, farmers and commercial vegetable growers.
“It is causing a lot of debate among farm families and there is concern because of the financial implications that RZLT may have for them,” the senator said.
He believes that the government should immediately halt the current RZLT process that is underway.
“The message and sentiment that I am hearing is that this is viewed as a tax on agri-land, farm families and rural Ireland.
“There are clearly issues with the RZLT – the government has acknowledged that so now is the time to do a u-turn on this,” Senator Boyhan added.
The senator said he intends to raise the issue of the RZLT as a commencement matter in the Seanad this week.
Earlier this month, Fianna Fail TD for Limerick city, Willie O’Dea, warned in the Dáil that the new tax could have “profound implications” for what he described as genuine farmers.
He said that if it went ahead in its current form many people would “driven out of farming”.
In response, Taoiseach Leo Varadkar confirmed that the RZLT will be “modified” to address “anomalies” that have arisen in relation to land that is actively farmed.
Meanwhile, according to the Institute of Professional Auctioneers and Valuers (IPAV) the new tax has created a great deal of concern among farmers.
But Tom Crosse, chair of the IPAV agricultural committee, said while farmers may be worried about the tax implications that could lie ahead for them, it is not likely to result in any build up of land sales.
“There is no appetite among farmers to sell land, they’re emotionally attached to the land and even if it is in scope of the RZLT they are not going to consider selling.
“There have been some issues identified already with RZLT – land has been included in RZLT maps which should not have included and perhaps this needs a re-think from government,” he said.