Carbon tax relief needed to stop black market contractors

Carbon tax relief on diesel and a revision of the Finance Act are needed to stop black market agri contractors from driving legitimate operators out of business, according to the Association of Farm Contractors of Ireland.

An FCI survey suggests the black economy makes up to 60% of all contract work on farms in some parts of the country, though just 10% in other parts. It says Government inaction is costing the State heavily in unpaid PAYE, PRSI and Vat, while also undermining registered, compliant agri contractors.

FCI says the carbon tax relief on fuel afforded to farmers should also be extended to agri contractors. It also wants the Finance Act 2013 revised to require all invoices issued for farm contracting services to carry a Vat number or PPS number to discourage undeclared payments.