The Irish Farming Association has said that it “beggars belief” that farming land has been included in a newly proposed tax on “idle lands” unless owners use it to build housing.
At the end of June this year the government announced a new “Residential Zoned Land Tax,” which will come into effect from 2024.
Linked to the government’s Housing For All plan, the self-stated goal of the tax is to penalise owners of zoned land unless they use it to “increase housing supply and to ensure regeneration of vacant and idle lands in urban locations.”
“Given the ongoing and urgent need to increase housing supply, the activation of these lands in a timely manner is essential,” the Department of Housing said in a press release at the time.
However, IFA President Tim Cullinane said that the plan will include farming land, and will “penalise” those in the agri industry.
“Farmers shouldn’t be penalised by imposing a Residential Zoned Land Tax on them, simply due to the location of the land they are farming,” he said.
“It has to be recognised that farmers are private land owners, not builders. Farmers have land to farm it, not hoard it as an investment. Thousands of farmers have land being encroached upon by towns and villages around the country that may be zoned both residential and serviced, purely by virtue of being close to a town, rather than by any intent on the part of the farmer.”
He continued, adding that farmers must be consulted before rezoning any land for residential developments.
“Land cannot be rezoned in county development plans without the prior knowledge of landowners which is happening at the moment.”
Additionally, IFA National Farm Business Committee Chair Rose Mary McDonagh said, “IFA fully appreciates the difficulties that the shortage of housing is causing. However, we strongly oppose the inclusion of farm land under the Residential Zoned Land Tax”.
“It’s not fair on these farmers who fall liable for this tax simply because of their location. It is one of the key priorities in our Budget 2023 submission, and we will be engaging with politicians in the weeks ahead to highlight our case and get this issue resolved.”