Farmers face new Zoned Land Tax on 20,000 acres

Farmers face new Zoned Land Tax on 20,000 acres

IFA Farm Business Chair Rose Mary McDonagh is calling on the Finance Minister to clarify that all agricultural land actively farmed will not be subject to the new Zoned Land Tax (ZLT).

The new three per cent ZLT, was announced in last week’s Budget. It is part of the Government’s drive to increase the supply of residential accommodation.

There are around 20,000 acres of land within the scope of the tax by end of 2022, with 90 per cent currently in agricultural use.

Finance Minister Paschal Donohoe said 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. 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,” said IFA Farm Business Chair.

“We need to learn from past policy ambiguities. When the vacant site levy was initially introduced, 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.”

LSL News.