PAC seeks carbon tax suspension
Agricultural contractors have called on the new Government to suspend the carbon tax on farm diesel with immediate effect.
With green diesel prices now heading for a landmark figure of €1/l, the Professional Agricultural Contractors (PAC) has urged the new Fine Gael/Labour cabinet to temporarily suspend the €15/t tax on marked gas oil.
If implemented, a suspension of the carbon tax would immediately cut 4.7c/l from the cost of green diesel.
PAC director Tom Murphy insisted the move would not require any legislative change and the tax could be reinstated if and when diesel prices fall again.
Contractors have warned that they have no choice but to pass on the rising cost of fuel to farmers in contracting charges this year.
The combination of rising diesel prices and lack of credit from oil companies will result in tighter credit and higher work charges for farmers.
"We are advising our members to quote their contracting charge and add a surcharge for fuel," said Mr Murphy. "If fuel prices come back down again, that surcharge can be reduced."