Farmers get income tax reliefs and low-cost loans in Budget
A number of measures, including the option to 'step-out' of income averaging and access to EU backed loan funds were announced for farmers in the Budget
The tough times farmers have been experiencing in recent months were to the fore of the Minister for Finance's budget speech.
Farming and the agri sector has been going through a tough time recently, Michael Noonan said, and Brexit and the subsequent weakness of sterling has impacted on the sector and poses a competitive challenge for farmers and the agri-food sector.
The initial detail from Minister Noonan included a number of measures that were well flagged in advance of the Budget.
He announced that farmers facing an exceptionally poor year can “step out” of income averaging and, instead, pay only the tax due on a current year basis with any deferred tax liability becoming payable over subsequent years.
“This facility will be available immediately and should provide cash-flow assistance this year,” he said.
He also announced that the flat-rate addition for farmers not registered for VAT is being increased from 5.2pc to 5.4pc with effect from 1 January 2017.
“The scheme, which is reviewed annually in accordance with the EU VAT Directive, compensates unregistered farmers for VAT incurred on their farming inputs.”