Kevin Humphreys (Dublin South East, Labour)
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83. To ask the Minister for Finance if there has been any analysis of the way a tax on land may be implemented here to complement the other taxes on property, and provide a funding stream for local authorities; the amount that would be raised for the Exchequer should a charge of €10 a hectare be applied to arable or productive land assets assuming that 4.6 million hectares are in use for agriculture and 750,000 for forestry; and if he will make a statement on the matter. [36007/13]

Michael Noonan (Limerick City, Fine Gael)
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Funding for local authorities is a matter for my colleague, the Minister for the Environment, Community and Local Government. I am advised by the Revenue Commissioners that they have no specialised knowledge of nationwide land values apart from land that is part of transactions for Capital Acquisitions Tax (CAT), Capital Gains Tax (CGT) and Stamp Duty purposes. Using the figures supplied by the Deputy, a charge of €10 per hectare on 4.6 million agricultural hectares and 750,000 forestry hectares, a total of 5.35 million hectares, would have a potential yield of €53.5 million, assuming no reliefs or exemptions and full compliance with the tax. A flat tax on land as outlined by the Deputy does not take into account the market value or quality of the land in question. It would apply to poor land with a lower market value and to forestry holdings at the same rate per hectare as to top quality arable land in productive areas.

CAT, CGT and Stamp Duty apply in different circumstances to transfers of land. These rates of CAT and CGT have increased in recent years and the tax-free thresholds for CAT have been significantly reduced. Although the rates of Stamp Duty on property transactions have reduced, many exemptions and reliefs from Stamp Duty have been abolished. The market value of property is taken into account in all three taxes. I have no plans to introduce a flat tax on agricultural land and land under forestry.