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Govt mull taxing undeveloped land

Written by Business World, on 17th Feb 2015. Posted in Financial

article headlineThe Department of Finance is considering taxing developers who fail to build on land in the hope of getting high prices later. It has opened a public consultation on the matter, inviting opinion on the validity of the view that owners of zoned and serviced land are waiting for higher prices. It wants to assess the extent to which the taxation system (through corrective measures) can be utilised to encourage the development of such zoned and serviced land to assist in reducing the shortage of residential properties in certain areas. In his 2015 Budget speech, the Minister for Finance made reference to the existence of a view that owners of zoned and serviced land are waiting for higher prices before taking steps to develop their land or sell it to others who will. Following from this, the Department of Finance has today (16 February) launched a public consultation on the potential of taxation measures to encourage the development of zoned and serviced land. Commenting on the consultation process Minister Noonan said: "I am determined the mistakes of the past will not be repeated, when property based tax reliefs were allowed to continue for too long with no clear rationale behind their maintenance. Lessons such as these must be applied in designing the Irish tax code for the future. In that regard, I want to emphasise that this consultation is not being launched with a view to introducing new property based tax reliefs or tax breaks." For more visit www.businessworld.ie

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