Taoiseach Simon Harris has defended plans to defer the residential zoned land tax stating that active farmers should not be penalised or “wrongly taxed”.
The tax was due to kick in next year, with landowners facing an annual three per cent payment on the market value of land that is earmarked for housing and also serviced by infrastructure that would allow residential development. However these plans now be deferred, the Taoiseach confirmed.
“As long as I am Taoiseach, no active farmer is going to pay (residential zoned land tax), simple as. I’ve said it many times, I said it when I became leader, I said it to the Irish Farmers’ Association, it was never meant to be about penalising a farmer, an active farmer.
“And I think the IFA’s position on this has been very reasonable, because they too differentiate between an active farmer and somebody who is maybe not being an active farmer and is trying to avoid paying tax. So, the Government will make a decision as a collective in relation to this around the budget time.
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“But 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, and will not stand over, a situation where an active farmer wrongly gets taxed. So that’s what the Department of Finance needs to work on. Whether they decide to defer it for another year, or whether they decide to come forward with amending legislation, I’m open to engagement,” Mr Harris said.
Asked if he accepts that a deferral of the tax essentially meant a continuation of land hoarding, he said: “I don’t. I am absolutely committed to that legislation, but we need the Department of Finance to listen and respond to legitimate concerns and I think they should take the time between now and the budget to come forward with proposals on that.”
Separately, Mr Harris again promised a cost-of-living package in the forthcoming budget, and also indicated that Ministers are considering extending the free hot school meals programme into the summer months for children.
“The next step is around how you address holiday hunger. I would like to look at that in the context of the budget as to how we continue to provide meals to children, particularly children of a disadvantaged background ... I know this is something that is being looked at.”
The Taoiseach was also asked about the ongoing conflict in Gaza, after US secretary of state Antony Blinken said Israeli prime minister Binyamin Netanyahu accepted a “bridging proposal” presented by Washington to tackle disagreements blocking a ceasefire deal.
Mr Harris said that the EU could do more and use further levers to increase pressure for a ceasefire. “The Irish Government’s position is that there needs to be an immediate ceasefire. The amount of aid going into Gaza has rapidly decreased in the summer months.
“After the ICJ ruling and all the condemnation of the world, there is less aid going into Gaza now as there was just under a month ago. I call on every party involved in talks to really dig deep. Can the Irish Government do more? I ask myself that every single day and I mean that very sincerely. I find what is happening in the Middle East to be grotesque and almost unimaginable in terms of the scale of the catastrophe and violence.”
“I do not believe the world, including the European Union, has done enough to bring about a ceasefire. I think when we look back at this time it will be a time of dark shame.”
He said he wants to a review of the EU Israel Association Agreement.
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