Government to approve 'rainy day' fund for farmers in the Budget
Published 28/09/2016 | 02:30
A special 'rainy day' fund for farmers will be announced in the Budget.
Under the proposals, farmers will be able to set aside a portion of their income during profitable years that will be exempt from tax.
The scheme is designed to allow farmers to then use this money to supplement their income during more difficult years.
Finance Minister Michael Noonan also indicated plans to introduce a new tax payment option for farmers.
Currently, farmers' income is taxed on an average basis over five years. But the new option will allow farmers, during years when profits are down, to pay tax over their actual income for that year.
The Irish Farmers' Association (IFA) called for the introduction of such a mechanism in its pre-budget submission.
The two measures were discussed at Cabinet yesterday.
Farmers who use the schemes could potentially reduce their tax bill by thousands of euro.