Neale Richmond (Dublin Rathdown, Fine Gael) | Oireachtas source

It should be noted that the Bill provides for an increase to the rate of the vacant home tax from five times to seven times the property's existing base local property tax rate. This is not exactly a move which one would associate with someone who does not like taxing vacancy, but that is exactly what is being done. The residential zoned land tax is a new tax introduced in the Finance Act 2021 which seeks to increase housing supply by encouraging the activation of residential development on lands which are suitably zoned and appropriately serviced. The principal purpose of the measure is to change the behaviour of the owners of such land, rather than to raise revenue, and to encourage development in areas where the residential zoning of the land acknowledges a housing need. The Senator has proposed reports on various aspects of these two taxes. As with other taxes, Department officials and Revenue continue to monitor these and, if appropriate, the Minister, Deputy Chambers, will be happy to review any of the matters outlined.