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