Why are the interests of big developers always put ahead of those who need an affordable home?
The new Zoned Land Tax exposes the Government’s lack of urgency when it comes to delivering housing, according to Social Democrats Housing Spokesperson Cian O’Callaghan.
“The two-year delay in introducing the Zoned Land Tax shows a complete lack of urgency on the part of the Government. Since 2014 we have been told time and again that solving the housing crisis takes time – how much more time do they need?
“For land zoned after January 2022, the lead-in time will be extended to three years. As a result, this new tax won’t be fully operational until 2025. We will likely have a change of Government by then.
“The rate at which the Zoned Land Tax has been set amounts to a tax cut for land hoarders. The poorly designed Vacant Sites Levy, which the Zoned Land Tax replaces, was set at 7pc. Why is the new tax being set at just 3pc?
“Given that land prices are rising year on year and, in areas of high demand for housing, at much more than 3pc, this rate will be ineffective. Why are the interests of big developers always put ahead of those who need an affordable home? To be effective this tax should be set at a minimum of 7pc and introduced without delay.
“As it stands, the Zoned Land Tax is too little, too late.
13 October, 2021