Government seeks to boost agriculture by tax review

The Government has launched a six-week consultation process into agri-taxation in an effort to improve the overall performance of the sector.

The aim of the review is to look into tax reliefs for the farming sector to identify what works and what doesn’t work.

Minister for Agriculture, Food and the Marine, Simon Coveney said: “I have ongoing contact with the minister for finance to ensure that tax policy reflects the Government’s commitment to agriculture and, in particular, to the objectives of smart, green, growth outlined in the Food Harvest 2020 strategy.

“The overall objective of the review is not to change the level of support to the sector through the tax system but rather to maximise the benefits to the sector and the economy for that existing level of support”.

The consultation process will include a questionnaire for all stakeholders in the agri sector.

The questions will focus on the effectiveness of existing tax reliefs and how best to improve land mobility, farm succession and sustainability.

The agri-food sector contributes roughly $26bn to the economy and €10bn in exports every year.

There are 139,860 farms in Ireland with an average size of 32.7 hectares. The average income for an Irish farm is €25,000.

The total amount of tax reliefs for the agri-sector is roughly €100m.

It is not envisaged that the value of reliefs will be changed.

IFA president, Eddie Downey said: “The review should positively incentivise agricultural production at farm level and support the viability and sustainability of the family farm.

“If these same aims are not prioritised, government targets under Food Harvest 2020 will not be met,” he said.

The first meeting of the IFA Farm Taxation Project Team will take place this week and the Minister for Finance Michael Noonan will attend the IFA Executive Council on February 21.

“This will be an opportunity for the minister to hear from our members about the important role that existing measures play in the farming sector, and what is needed to underpin the expansion plans and deal with volatility,” said Mr Downey.