The Irish government wants farmers in the agri-food sector to pay the equivalent of €1,000 per hectare of their land in taxes to help fund an agricultural levy.
In its latest Farm Bill, the government said it was committed to providing tax relief for farmers through the levy, which it said would help alleviate the burden on the budget and help address the “huge challenges” facing the country.
“Farmers pay in the region of €3,000 to €4,000 in taxes for their farms each year.
This levy is needed to support the Government’s plan to create an agricultural income fund for farmers, but it will also provide relief for some farmers who have already paid taxes in the past,” it said.”
The levy will not affect the right to sell agricultural produce in the future.
The levy will be a fairer and more equitable system for all.”
The government has already announced a tax relief of €2,000 on all agricultural products, and is due to release a tax plan in the coming months.
The levy would be levied on the average value of all agricultural goods produced in Ireland, including on the amount farmers have to pay in tax, and on the price of the farm produce.
In recent years, the levy has been introduced as a way of encouraging farmers to buy more agricultural produce and reduce the need for more farmers to move into farming.
The measure is part of the Government-commissioned Agricultural Strategy, which was published last year.
The aim of the plan was to encourage the country to become more self-sufficient in food, but the government has come under fire for not delivering on the target, which is estimated to cost the economy about €30 billion annually.
The Irish Farmers Federation has said that while the government’s tax plans have been good for farmers they have not delivered a significant increase in tax revenue.
“We believe that the proposed levy is only a partial solution to the problem of underpayment in agricultural income,” said the Federation’s chief executive, Dr Pat McQuaid.
“For many farmers this is their only source of income, and they are very unhappy with the levy.
The Government said that it was taking the tax issue “very seriously”, and that it had already met with the farmers in question to discuss the matter.”
This is a very significant issue which needs to be addressed urgently and in order to provide a real return on the tax burden of farmers.”
The Government said that it was taking the tax issue “very seriously”, and that it had already met with the farmers in question to discuss the matter.
The farmers association, which represents more than 200,000 farmers, said that the government needed to “think very carefully about the effect of the levy on their farming operation” and that they would be seeking further advice from the Department of Finance.