The announcement by Minister for Finance Michael McGrath this morning that the pouring concrete element of pre-cast concrete products will be removed from the concrete levy is the correct decision, according to IFA Farm Business Chair Rose Mary McDonagh.
“IFA has maintained since the announcement of this levy in last year’s Budget that this is an unfair tax on farmers and the general population for a problem not of their making. It is simply a revenue raising exercise and adding further costs to construction at a time of already inflated prices,” Ms McDonagh stated.
“While the levy on pre-cast products is gone, it still applies to ready mix and concrete blocks, which are used for construction work on farms. This increased cost will act as a disincentive for work that will make farms more sustainable,” she added.
Ms McDonagh concluded, “as previously stated, farmers should be allowed to reclaim any levy paid on construction work in the same manner as VAT is reclaimed. IFA has requested a meeting with the Minister to discuss possible alternatives to the current levy”.