Reduction of 80% Windfall Tax on Rezoned Land Will Create Jobs and Affordable Housing

Chambers Ireland has today (08/05/14) called on Government to reduce the 80% windfall tax on rezoned land in order to support the construction of affordable housing and sustainable job creation in the building sector. The call comes in advance of a new strategy on the construction sector soon to be released by Government.

Speaking this morning, Chambers Ireland Deputy Chief Executive Seán Murphy said “Current legislation provides that all changes in land zoning will result in this land being liable for an 80% windfall tax rate when sold. That means that land currently zoned for industrial use will incur an 80% Capital Gains Tax if it’s rezoned for residential use. This provision impedes the redevelopment of land, especially brownfield land, to new more appropriate uses demanded by the market such as housing.”

“If we are to boost construction activity and create jobs in regions for which there is significant pent up demand, then we should be fostering the rezoning of no longer appropriately located industrial/brownfield sites to housing.  In this way we can encourage reasonable density house building close to excellent services and transport infrastructure, while facilitating the moving of warehouse/light industrial units to better located and serviced industrial areas. Most importantly, this can also stimulate activity levels in the construction sector creating jobs. Unemployment and lack of affordable housing are two major issues currently affecting Ireland and a reduction in this levy will have a positive impact on both.”

“This is also an issue of which Local Election candidates should be mindful and if elected raise with central Government to ensure the best possible future for their local areas,” he concluded.