The Government is to conduct an independent review of farmer taxation to ensure that tax reliefs are focused on those areas where they are needed most, Minister for Finance Michael Noonan said during his Budget speech.
He said it was “ entirely appropriate” the agri-food and fisheries sector had received significant tax relief and incentives over the years, given that it employed some 150,000 people, produced an annual output of €24 billion and exported €9 billion worth of goods.
“But these [tax reliefs]have grown over time and there is now a significant information gap about their cost and effectiveness,” he said. “Therefore, I am announcing, in conjunction with my colleague, the Minister for Agriculture, Food and the Marine, that an independent cost benefit analysis will be undertaken in this area. The objective of the review is to identify what works and what doesn’t, and redirect the existing level of tax expenditure towards activities of maximum benefit to this sector of the economy.”
Minister for Agriculture Simon Coveney is expected to announce a new scheme to help suckler farmers, when he holds a Budget press briefing this evening. There have been concerns about the reduction in the size of the suckler herd since the €25 million a year suckler cow welfare scheme ended.
In his Budget speech, Mr Noonan announced some measures to help young farmers get established.
Capital Gains Tax retirement relief to disposals of long-term leased farm land has been extended in certain circumstances. Mr Noonan said this would encourage older farmers to lease out their land on long term leases to younger farmers, in circumstances where the older farmers had no children who were willing to take up farming.
Eligibility for Young Trained Farmers relief has also been extended with the addition of three more qualifying courses to the list of relevant qualifications needed to qualify for 100 per cent rate of stock relief and for the Stamp Duty relief for the purchase of agricultural properties.
A scheme which compensates unregistered farmers for VAT incurred on their farming inputs has seen an increase in farmers’ flat rate addition from 4.8 per cent to 5 per cent from January 1st next.
