By FWi staff
EXTRA capital allowances, lower excise duty on diesel and increased VAT rebates are three of the benefits for farmers contained in the recent Irish Budget.
Under the package announced last week, Dublin has agreed to boost capital allowances from 15% to 20%, effectively allowing farmers five years to write off new machinery investments rather than seven.
Irish farmers will also benefit from an increase in the VAT rebate to 4.3% and the more general cut in road diesel excise duty to 7.3%, worth about Ir6ppl at the pumps.
Roll-over relief on compulsorily purchased land is also being extended.
But Irish farm leaders are not impressed with a government decision to double the income tax allowance for those under PAYE to 2000.
“This increase, which excludes the self-employed, will mean that farmers will be paying up to 800 more tax compared to a PAYE family on the same income,” said Pat ORourke, president of the Irish Creamery Manufacturers and Suppliers Association.