Farmland should never have been included in the residential zoned land tax (RZLT), Irish Farmers' Association (IFA) president Francie Gorman has commented following news that the tax has been deferred for a year.
“Expecting farmers to pay 3% of the value of their land in an annual tax that bears no relation to the income earning potential from the land is wrong. In effect, it would force farmers to sell the land," he said.
If the tax was not deferred, payments would be due by farmers next February.
Fianna Fáil TD Jackie Cahill has said Minister for Finance Jack Chambers, Minister for Housing Darragh O’Brien and Minister for Agriculture Charlie McConalogue are working on a new tax system to exclude active farmland in the upcoming budget.
Cahill said this deferral will “alleviate the fear and anxiety felt by many farmers who have farmland that would have been affected.
“By excluding active farmers from RZLT, we would be protecting both farmland and food production while showing that we support farming livelihoods.”
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