Call to cut farm machinery VAT rate

FARM machinery dealers have urged the Department of Finance and the Revenue Commissioners to stamp out non-payment of VAT on used machinery imported from Britain.

Some of the importers are using bogus Irish VAT numbers, according to Farm Tractor and Machinery Trade Association president Eamonn Tinney Jnr.

He warned that a dramatic increase in used machinery imports from Britain is one of the most challenging circumstances in many years for the Irish farm machinery industry. It has also been hit by the collapse of the construction sector, which had become a substantial market in recent years; reduced farmer purchasing power due to lower agricultural commodity prices and rapid decline in off-farm income; the continued weakness of sterling against the euro and an overhang of high-priced used machinery due to strong sales in recent years.