Fine Gael commits to exempt farmers from Residential Zone Land Tax – Ring

Fine Gael has committed to exempt working farmers from Residential Zoned Land Tax (RZLT), Deputy Michael Ring has said.

Deputy Ring brought forward a motion on the issue to this week’s meeting of Fine Gael’s parliamentary party.

The motion ‘calling on the Government to exempt active farmland from the Residential Zoned Land Tax as it is causing great aggravation and upset in particular to farming families who are genuine farming families and do not want to sell their land’ was formally adopted by Fine Gael’s Ministers, TD’s, Senators and MEPs on Wednesday evening.

Deputy Ring said it was a good development for all farmers.

He said it is important to ensure that hard working farmers and their families are not penalised by a tax which was aimed at land hoarders when the construction of more homes is required.

RZLT was introduced as part of Finance Bill 2021 to activate land for development to increase housing supply.

Deputy Ring said farmers who use their land for food production are not property speculators or developers and cannot be treated as such.

“There was widespread agreement from colleagues and Ministers that farmers should not be financially punished for a tax which was aimed at those who were sitting on idle land. Farmers are most certainly not doing that, they are critical to this country’s financial prosperity and wellbeing,” the Mayo TD said.

“I am delighted to say I have secured the agreement of the Fine Gael parliamentary party that farmers will be exempt from the tax. I look forward to working with the department officials to ensure this happens as soon as possible,” he said.

Deputy Ring said the tax could not be abolished as it would send out the entirely wrong message to those who are hoarding land.

“We need homes built in this country and those who are sitting on idle land which can be used for home construction must pay taxes on it.

“New housing targets for Government will be agreed and set out in the Autumn. Fine Gael has set out it wants to build 250,000 homes between 2025 and 2030,” he said.