Sinn Féin hit out at Government's 'disgraceful' delay on residential zoned land tax

Simon Harris said that the Department of Finance needs to fix the legislation to ensure active farmers cannot be hit with taxes on their land

Taoiseach Simon Harris said: 'The Department of Finance, in my view, needs to fix this legislation, it needs to come forward with proposals as to how this legislation can be applied.'

The Government has been criticised for a decision to defer introducing a residential zoned land tax, as Taoiseach Simon Harris says active farmland will not be impacted.

Mr Harris confirmed that the Government would be deferring the tax, saying that the Department of Finance needs to fix the legislation to ensure active farmers cannot be hit with taxes on their land.

The tax itself would have been introduced next year, with landowners having been due to face a 3% levy on the market value of land earmarked for housing development.

Concerns had been raised about the potential impact of the tax on active farmers, who have land used for agriculture that is zoned for housing. Sinn Féin’s finance spokesperson Pearse Doherty has said that the planned deferral would be a boon to land hoarders amidst a housing crisis.

“The government’s decision to delay a land tax that is aimed at land hoarders who are sitting on land that should be developed to build much needed housing is a disgraceful one,” Mr Doherty said.

“Let’s be clear — this is a direct result of this government’s abject failure over the past three years to exempt actively farmed land from this tax.”

The Donegal TD said that he first raised the matter with the Government three years ago, calling on the Finance Minister to exempt farmland from the Residential Zoned Land Tax.

“Sinn Féin has repeatedly raised this problem with the government for the past three years but no action was taken,” he added.

Mr Doherty said that, due to the Government’s decision, land hoarders will “have another year to sit on land that should be developed to build homes”.

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“Through a toxic mix of political opportunism, inaction and ineptitude, the government has chosen to worsen the housing crisis and hand land hoarders and speculators another free pass.”

The Taoiseach said that it would be up to the Department of Finance for the amount of time the legislation would be deferred for.

“The Department of Finance, in my view, needs to fix this legislation, it needs to come forward with proposals as to how this legislation can be applied. I don't want to see people hoarding land, but I also do not want to see an active farmer wrongly get taxed,” Mr Harris said.

"Whether they decide to defer it for another year, or amending legislation, I'm open to engagement.”

Mr Harris said that, while he is Taoiseach, “no active farmer will pay a Residential Zoned Land Tax”. “This land tax is absolutely about making sure people can’t hoard land. It was never meant to be about penalising an active farmer.”