At our meeting in May, Fingal County Council voted to support my motion calling on the Government to reverse its abolition of the 80% Windfall Tax on the profits of the sale of land where that land enjoys increased value due to a rezoning decision. You can see my (short) speech on the issue here.
When we or any Council pass a motion to rezone land, the value of that land increases, dramatically. At the stroke of a vote, we massively increase the wealth of that owner, and this is through no work or effort of that particular individual.
I believe that it is proper public policy that a significant part of that extra value should go back to the state. This is why I support the Windfall Tax. It is not a tax on work. It’s not a tax on entrepreneurship.
It is also important to remember that the Mahon Tribunal in its report into planning corruption stated “the introduction of an 80% windfall tax on profits/gains attributable to land rezoning by the National Asset Management Agency Act 2009 is likely to dramatically reduce incentives to make corrupt payments to influence land zonings should the opportunity to make such profits return”.
I hope the Government will re-consider its hasty decision to abolish this tax. I will certainly continue to highlight this issue.