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Wednesday 18 October 2017

Minister for Finance confirms he knew effect of tax hike on farm land sales

Minister for Finance Pascal Donohoe TD at Budget 2018 presented by INM and sponsored by KPMG in the Stephens Green Hibernian Club.
Minister for Finance Pascal Donohoe TD at Budget 2018 presented by INM and sponsored by KPMG in the Stephens Green Hibernian Club.
Minister of Finance Paschal Donohoe. Photo: Tony Gavin
Kevin Doyle

Kevin Doyle

Finance Minister Paschal Donohoe is standing over his decision to include farmland in his hike of stamp duty on property.

The measure in Budget 2018 caught Agriculture Minister Michael Creed off guard and has resulted in a backlash from farming bodies.

But today speaking at the Independent News and Media Budget 2018 business breakfast, Mr Donohoe said he was well aware of the implications of the move, which saw stamp duty on sales of commercial land rise from two per cent to six per cent.

“I was very much aware of what the definition is of non-residential (commercial) property,”

“And that is why I referenced in my Budget day speech on young farmers and the consanguinity rate, because I was aware of what the definition of non-residential property was,” he said.

Read also: Backlash over stamp duty on sale of farms: Vast majority of farms will be hit with 6pc tax

Mr Donohoe also said he was aware of the components of the tax yield.

“If you compare us to the UK even it’s five per cent. If I don’t address things like that now it will create further difficult for me in the future,” he said.

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He was speaking at the Independent News and Media Budget 2018 business breakfast at the St Stephen’s Green Club in Dublin city centre, chaired by INM Group Business Editor Dearbhail McDonald.

The event was attended by business leaders including Digicel founder Denis O'Brien, KPMG managing partner Shaun Murphy, new Dublin Airport Authority chief executive Dalton Philips, Permanent TSB chief executive Jeremy Masding, Lidl Ireland chief executive JP Scally, former Fitzwilton chairman and INM director Dr Len O’Hagan, and INM Editor-In-Chief Stephen Rae.

Minister for Finance Pascal Donohue TD with Stephen Rae and Dearbhail Mc Donald INM at the Budget 2018 presented by INM and sponsored by KPMG in the Stephens Green Hibernian Club.
Minister for Finance Pascal Donohue TD with Stephen Rae and Dearbhail Mc Donald INM at the Budget 2018 presented by INM and sponsored by KPMG in the Stephens Green Hibernian Club.

The event was also addressed by a panel of experts on the economy, made up of UCD economist and Sunday Independent Colm McCarthy, IBEC chief economist Fergal O’Brien, KPMG Head of Tax and Legal Services Conor O’Brien and Sunday Independent Business Editor Samantha McCaughren. The panel was chaired by Irish Independent business columnist Richard Curran.


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