Young farmers set for tax relief in budget
The moves are line with changes to payments from Europe for young farmers which are due to come into effect in January.
Agriculture Minister Simon Coveney ordered a strategic review of the tax code for farmers this year, in line with the changes to the Common Agriculture Policy payments.
Under the CAP changes, Irish farmers under the age of 40 will get a 25% top-up of their payments over a five-year period.
The Government is keen to see those farmers use the extra income and incentivise them to invest in the sector.
Two areas Mr Coveney has examined include the long-term leasing of land and generational changes to land ownership.
It is expected that tomorrow’s budget will include tax reliefs to address these areas.
“You want young farmers to look at long-term leasing, take it and invest in it,” said a Department of Agriculture source. “There’s also the issue of land changing in ownership from the older generation to the younger.”
Elsewhere, the budget will include funds for more than 1,000 extra teachers to help meet demographic changes. However, there will be no reduction in teacher-pupil ratio numbers.
Health Minister Leo Varadkar has also managed to secure €300m for health for next year to help meet a gap in his budget as well as other smaller one-off payments in lieu for further reforms and savings in services.
A stimulus package for the construction sector as well as plans to increase the amount of social housing will be announced tomorrow.
It has also emerged that a new package of reliefs for households paying water charges has been agreed by the Government.
This is expected to be special tax credits for those on low incomes, in addition to the €100 allowance to be paid out to those in receipt of the household benefit package.
The Government is also expected to announce changes to pension levies and whether they will be reduced or in some cases abolished.
Following efforts from the hospitality sector, the special 9% Vat rate for restaurants and hotels is also expected to remain untouched in tomorrow’s budget.
There have also been strong signals that excise on alcohol will not be increased.
