TAOISEACH SIMON HARRIS has said it is “offensive” to describe farmers as land-hoarders as he defended plans to defer the introduction of Residential Zoned Land Tax (RZLT).

The Irish Independent reported today that an exemption for farmers to the tax was on the cards, following backlash from farmers whose land was zoned for residential development but was being used for agricultural purposes.

Harris told reporters today that the exemption is required before the residential land tax can be introduced.

The RZLT is designed to be charged at a rate of 3% of the market value of the land which is zoned for residential use.

The measure was announced in budget 2022, in a bid to incentivise landowners to activate existing planning permissions to increase housing supply. There was a long lead in time to allow landowners to be put on notice, with the new tax set to kick in in February, with bills coming due in May 2025. 

Harris said he was supportive of the concept of a land tax to address housing supply, but warned that further delays were possible.

It is “important” that farmers are separated from it “because it’s offensive to tell a farmer that they’re a land hoarder when they’re actively farming and playing an important part in our economy”, he said. 

“As long as I’m Taoiseach, no active farmer is going to pay a residential land tax – simple as.”

“This land tax is absolutely about making sure people can’t hoard land. It was never meant to be about penalising an active farmer,” said the Taoiseach.

Harris said the government will collectively decide on the approach taken to the matter in the Budget on 1 October but added that the Department of Finance needs “to fix” the legislation underpinning the charges.

“It needs to come forward with proposals as to how this legislation can be applied to those who are hoarding land – because I don’t want to see people hoarding land, I want to see homes built.

“But I also do not want to see and will not stand over a situation where active farmers wrongly get classified as land hoarders.”

The Taoiseach said he is open to the department either bringing forward amendments or a decision to defer the legislation for another year.

‘Boon for land hoarders’

Sinn Féin has said the comments are a “boon for land hoarders”.

The party finance spokesman Pearse Doherty said: “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.

“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.

“I first raised this issue in 2021 – three years ago – with the Minister for Finance when the legislation for this tax was first introduced.”

He added: “As a result of their inaction and ineptitude, land hoarders have another year to sit on land that should be developed to build homes.

“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.”

Separately, the Taoiseach emphasised again the need for a cost-of-living package in the upcoming budget. 

He said the government is “eager to do more” in the budget to help families and those struggling to make ends meet.

“Of course, we can all point to statistics that show inflation falling and showing prices falling, but let’s also be honest, that has not yet been felt by parents, by families, by businesses, by farmers,” he said.

“That’s why there absolutely will be cost-of-living package as part of the budget on the 1 October, and that’s a cost-of-living package that will kick in by the end of next year,” he said.

“I think it’s important when the country is doing well, when the country will have an economic surplus… I think it’s important that we use a proportion of that to help families, to help businesses, to help people who are struggling to make ends meet, and of course, we will work with our government partners on the composition of the size and the makeup of that package in the weeks ahead,” Harris added.