The IFA has called on the Minister for Finance, Paschal Donohoe, to clarify that all agricultural land that is actively farmed will not be subject to the new zoned land tax (ZLT).
The tax was announced in last week’s budget and Minister Donohoe stated that the ZLT could apply to any land with “residential” contained in its zoning status and that is also serviced.
It is estimated that around 20,000 acres of land could be subject to the tax.
“Thousands of farmers have land on the outskirts of towns and villages around Ireland that may be both zoned residential and serviced,” explained Rose Mary McDonagh, IFA farm business chair.
“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. Once the land is included on a Basic Payment Scheme (BPS) application, it is clear that it is farmed agricultural land,” she said.