Proposals in the Finance Bill to offset the increased costs of the Carbon Tax have been described as insufficient and unworkable.
IFA President John Bryan commented, “There was a clear commitment given in the Programme for Government that farm diesel would be exempt from any further increases in the Carbon Tax. This has not been honoured, and the proposals for a double income tax deduction for farmers arising from the increased costs will not give full cost recovery.”
IFA has developed proposals to allow for a full recovery of the cost increase through point-of-sale deduction and through a direct refund for VAT registered farmers. The proposals must be included before the Act is finalised.
Commenting on other elements of the Finance Bill, Mr Bryan continued, “The proposals to strengthen the enforcement role for the Revenue Commissioners to combat illegal fuel trade are positive. IFA has argued strongly that the existing marker system for Agricultural Diesel must be retained and strengthened and these proposals support our position.”
He continued, “The proposed limitation of the enhanced stock relief to Milk Production Partnerships only is unfair and discriminates against partnerships operating across other farming enterprises. All registered farm partnerships should be able to avail of this additional relief.
“The Carbon Tax is simply an increased cost on agricultural production. IFA is looking for Government to honour its commitment to farmers and ensure that costs arising from the increase can be fully recovered and in a simple manner,” he concluded.