Minister asked to axe RZLT
FARM leaders have this week called on the new Minister for Finance, Jack Chambers, to use October’s Budget 2025 to get rid of the Residential Zoned Land Tax [RZLT] as it applies to farmland ‘once and for all’.
While a recent move by Fine Gael TDs, Senators and MEPs to exempt farmland from RZLT has been welcomed by the IFA, the want the new Finance Minister to give ‘full clarity and confirmation’ on the issue.
According to the IFA, if the tax had been introduced as originally proposed it could have forced farmers to sell off their land because of what they described as a ‘crippling’ 3% tax on the value of development land.
Galway IFA Chair, Stephen Canavan, told the Farming Tribune, that while there was an option for farmers to make a submission seeking the dezoning of land, there had been cases in different parts of the country where these weren’t successful.
“We’ve all heard of compulsory purchase orders [CPOs] but if this new RZLT tax had come in as originally proposed it would be the same as a compulsory selling order.
“I think here we are looking at a basic right of a farmer and his family to be able to continue farming on his holding without any threat of this penal tax being imposed. It just amounts to a bit of common sense,” said Stephen Canavan.
This week, IFA National Business Chair, Bill O’Keeffe, said that the straightforward solution to the issue was to simply to remove all actively farmed land from RZLT.
“This penal tax, if implemented, could result in the forced sale of farmland, potentially undermining the livelihoods of farmers.
“The annual 3% tax is due to take effect in early 2025. It’s completely unjust and must not be forced on farmers.
“The Minister for Finance Jack Chambers has it within his powers to exempt farmland from RZLT in the upcoming Budget 2025 and subsequent Finance Act,” said Bill O’Keeffe.
Pictured: Galway IFA Chair, Stephen Canavan