Tipperary farming: Brexit uncertainty remains following Budget

ICSA president 'appalled' by land stamp duty increase

Tipperary Star reporter


Tipperary Star reporter


Tipperary farming: Brexit uncertainty remains following Budget

ICSA president Edmond Phelan says Brexit uncertainty remains following Budget

The Budget provides very little detail on how a no-deal Brexit will be mitigated, according to ICSA president Edmond Phelan.

“The Minister for Finance indicated a fund of €110m for the Department of Agriculture, of which €85m will be targeted at beef farmers, in the event of a no-deal Brexit. However, it is clear that a no-deal Brexit would also require support from Brussels. The problem with all of this is that Brexit uncertainty has been almost as bad as the no-deal scenario for cattle and sheep farmers. Nothing in the budget acknowledges that reality," he said.

Mr Phelan said that we still were not clear as to what will be done to deal with the shortfall in applications for the BEAM programme.

ICSA believes that the rate per qualifying animal should be adjusted upwards so that the full exchequer contribution of €50m , along with matching EU funding can be utilised.

Sheep farmers are also feeling the impact of Brexit as low sheep price in the UK is completely undermining our sheep farmers. ICSA believes that sheep farmers are also going to need a package along the lines of the BEAM scheme for beef farmers, he said.

In other sections of the Budget, Mr Phelan said that ICSA was appalled at the further increase in stamp duty on land purchase which had now been increased twice, initially from 2% to 6% in the previous Budget, and another increase in this week's budget to 7.5%.

“This is a totally gratuitous assault on farmers trying to expand their enterprise. However, we do welcome the extension of the Capital Gains Tax relief for Farm Restructuring for another two years to the end of 2021," he said.

The increase in carbon tax, which is likely to be the first of many, is simply an unfair tax on rural dwellers, according to the ICSA president.

“Most rural dwellers cannot afford an electric car. Hybrid cars are okay for urban commuting, but totally unsuited to rural or long distance driving, and not practical for towing. Carbon tax without an alternative way of travel or haulage is simply personal tax dressed up in virtuous clothing,” he said.  

Mr Phelan described the minimal adjustments to the self-employed tax credit and the Capital Acquisitions Tax Group A rates as "begrudging".

“Initially, there was a commitment to rectify the injustice of income tax credits in three tranches of €550 a year. If that had happened, the self-employed person would have already achieved income tax parity with the employee. It is manifestly unfair that we are heading into yet another tax year whereby the earned income tax credit is still less than the employee tax credit (€1500 vs €1650).”