Deferral is no fix for land tax issue
HUNDREDS of Galway farmers close to towns dotted around the county will not now be facing a Residential Zoned Land Tax (RZLT) liability this year, following the Budget announcement this month that the measure has been deferred for one year.
However, the IFA and farmer representatives have said that the deferral is only a case ‘of kicking the can down the road’ rather than putting in place legislative change to deal with the problem.
The RZLT could work out at annual payment rate of €2,500 per hectare, according to the IFA, who say that such a punitive rate of tax would simply put them out of business.
According to IFA National Business Chair, Rose Mary McDonagh, applications by farmers to the County Council and then to An Bord Pleanála, to have their lands dezoned in around 98% of cases have been refused.
“This is an absolutely penal and crippling tax on farmers who just want to farm their lands as they have done in the past. To try and lump this kind of charge on top of ordinary farmers is completely unjust,” said Rose Mary McDonagh.
She added that last May, the Taoiseach Leo Varadkar, had put it on the Dáil record, that he recognised ‘there was an issue with the tax which needed to be fixed’.
“The problem now is that the issue hasn’t been fixed: the deferral of the tax for one year is not a solution to the problem that’s there. We were fully expecting to see legislative change which would remove this tax liability on farmers,” Rose Mary McDonagh told the Farming Tribune.
Pictured: Rose Mary McDonagh: Penal tax must be fixed.