The Residential Zoned Land Tax (RZLT), in its current form, could have unintended consequences which could risk the viability of farms, Minister for Finance Jack Chambers has said. “This would be unfair, disproportionate and inequitable,” he told the Irish Farmers Journal.
Re-zoning requests
Minister Chambers said that a process, which began last year, where applications could be made to local authorities to request a re-zoning of this land is nearing a conclusion.
“The latest information received is that the vast majority of re-zoning requests made to local authorities have been refused.
“Therefore, this land would currently be subject to this tax in 2025 if no further action is taken,” he said.
He said that the advice he has received to date is that a new mechanism is required to exclude active farmers and that the introduction of such a mechanism would require a deferral.
“I am working on proposals to defer the tax so that a mechanism can be progressed to exclude active farmers.
“I am exploring all options and if a viable alternative to a deferral emerges which achieves the outcome of excluding active farmers then I will pursue this course,” he said.
Minister Chambers added that his sole objective is to bring a solution forward which ensures that active farmers are not liable for this tax and that land hoarders are taxed.
“The mechanism and timeline for this is subject to ongoing policy and legal advice. I will update party leaders on this in advance of the budget so that the unintended consequences of the tax can be addressed.
“All of the parties in Government introduced and fully support the residential zoned land tax. The policy intention of the tax is to activate vacant land for residential purposes,” Chambers said.
SHARING OPTIONS: