IFA Present Farm Taxation Proposals to Department of Finance

At a meeting with Department of Finance officials, IFA Farm Business Chairman Tom Doyle said, “The achievement of growth targets for the agri-food sector requires a sustained improvement in the competitiveness of primary agriculture. It is critical that existing taxation measures to support restructuring, farm investment and land mobility are retained. Where necessary, they should be extended, if their current restriction is proving a barrier to the development of the agriculture sector.”
The key IFA proposals discussed were:

Retention of 90% Agricultural Relief;
Renewal of Stamp Duty Relief and Stock Relief;
Extension of long-term land leasing incentives to include incorporated farm businesses as qualifying lessees;
Extension of 50% stock relief to registered farm partnerships in all enterprises; and
Relief from Capital Gains Tax where land is disposed of for the purpose of farm consolidation.

Tom Doyle continued, “IFA also highlighted the inadequacy of the double income tax deduction for theincrease in the Carbon Tax introduced in the last budget. The Government must introduce a system which fully compensates farmers for both the direct and indirect costs of the Carbon Tax increase, including increased contracting costs. The increase in the Carbon Tax simply undermines the competitiveness of the agricultural sector by increasing the cost of food production.”

Mr Doyle concluded, “The taxation proposals are the first step in the IFA Budget campaign for 2013. With farm incomes under pressure already in 2012, there can be no further cuts to farm schemes. In addition, the Government must recognise the importance of retaining taxation measures that increase efficiency, encourage timely farm transfers and overall, increase output at farm level, leading to an increase in earnings for the economy.”