The IFA farm business chair Rose Mary McDonagh, has said that land that is actively farmed must not be subject to the new Zoned Land Tax (ZLT).

McDonagh has called on the Minister for Finance Paschal Donohoe to clarify that all agricultural land actively farmed will not be subject to the new ZLT.

As reported by the Irish Farmers Journal, theZLT was announced in Budget 2022.

The Minister stated that the ZLT could apply to any land with “residential” contained in its zoning status and is also serviced.

Thousands of farmers have land on the outskirts of towns and villages around Ireland that may be both zoned residential and serviced

McDonagh commented: “Once the land is included on a Basic Payment Scheme (BPS) application, it is clear that it is farmed agricultural land.

“If this zoned land is agricultural and being actively farmed, it is not being hoarded as an investment and must be excluded for this new ZLT.

“Thousands of farmers have land on the outskirts of towns and villages around Ireland that may be both zoned residential and serviced.

McDonagh has called for some clarity on the situation. “We need to learn from past policy ambiguities. When the vacant site levy was initially introduced, the IFA had to engage intensively with the Department of Finance to ensure that agricultural land was, rightly, excluded.

“The same clarity is needed in this instance,” she insisted.