Budget measures impacted on sector

Farmers did not escape cuts in this year’s budget.

The changes affecting farmers include a cut in the VAT credit from 5.2% to 4.8%. This flat rate addition is designed to compensate farmers for VAT they pay on supplies and farm inputs.

The farmer is entitled to a flat-rate addition (at present 5.2%) to the prices at which his or her agricultural produce or agricultural services are supplied to VAT-registered persons and companies, including marts, agricultural co-ops, and meat factories.