21 Nov 2011
IFA RE-ITERATES OPPOSITION TO CHANGE IN EXCISE FOR AGRICULTURAL DIESELUncategorized
IFA Farm Business Chairman James Kane has re-iterated IFA’s opposition to any attempt to equalise the excise rates for agricultural diesel.
He said, “Week-end reports suggesting that IFA favours a rebate system is factually incorrect and has no basis. IFA has serious concerns about any attempt to raise the price of agricultural diesel for farmers and agricultural contractors. It would have a negative impact on cashflow, putting pressure on the viability of small businesses, particularly given the restricted access to working capital from the banks. In addition, any rebate system would impose significant additional paperwork and compliance costs on farmers.”
James Kane said, “While proposals that could potentially curb the illegal laundering of diesel must be considered, this particular proposal takes no account of the likely difficulties, and costs of policing and administering a rebate system. The Minister for Finance Michael Noonan has endorsed this view, and has said he is opposed to any change in the current system.”
He concluded, “It does not make sense to target the excise rate that applies to agricultural diesel. The current system is an important element in maintaining the competitiveness of our sector, and any disruption would damage it.”