Farmers call for Vat rate change in budget that could save them up to €10m annually
The Department of Agriculture has previously committed to reducing the rate to 0% in 2025 from the current rate of 23% based on the facilitation provided in the EU Vat Directive, the IFA said.
Farmers are calling for the rate of Vat charged on important products to be reduced as a move that could save them up to €10m annually.
The Irish Farmers' Association's animal health chairman TJ Maher said that the rate of Vat charged on animal vaccines is a decision for Government in the upcoming budget - as the EU Vat Directive allows for member states to reduce the rate on these products to 0%.
This could save farmers millions in the cost of these important preventative medicines.
The Department of Agriculture has previously committed to reducing the rate to 0% in 2025 from the current rate of 23% based on the facilitation provided in the EU Vat Directive, the IFA said.
TJ Maher said this has been "unnecessarily delayed" to 2025 as it could have been applied in 2022, but "the time has now arrived for the Government to deliver on this commitment and enact the 0% rate on animal vaccines from January 1, 2025".
Mr Maher explained that this would be a positive step in supporting farmers to enhance the health and welfare of their animals and reducing the need for antibiotic usage on farms at effectively zero cost to the exchequer due to the flat rate Vat rebate system.
"This Government has talked up the importance of addressing antimicrobial resistance and has developed ‘iNAP’ which incorporates best practices in reducing dependence on antibiotics in human and animal treatments," the IFA said.
"For farmers, one of the most important tools in delivering on this is access to competitively priced vaccines.
"We spend almost €40m each year on vaccines, 23% or almost €10m of which is Vat that does not need to be applied.
"There is now a real opportunity for Government to show if they truly support farmers and industry in reducing antimicrobial resistance."
Mr Maher said that the department also has a "serious role to play" in ensuring vaccine availability for farmers at critical times of the year.
He said over the past number of years, farmers have experienced "increasing levels of certain vaccine shortages at critical usage times and the situation for a number of products is worse this year".
"Availability of vaccines when needed is critical for farmers in protecting and maintaining the health, welfare and productivity of our animals while reducing the need for antibiotic usage," Mr Maher explained.
"These products are too important for farmers and to the health of our animals to be left to chance or commercial decisions of pharmaceutical companies or medicine suppliers."
