IFA president Joe Healy there has been 'some recognition' by Government of the market and income difficulties in the industry
IFA President Joe Healy said Budget announcements of increased funding of €25m for low-income farmers through the Areas of National Constraint (ANC) and a low-interest loan package for farmers, have provided some recognition of the market and income difficulties facing farming enterprises in 2017.
“The increased funding of €25m announced for the ANC reverses some of the cuts imposed on the lowest income farmers in previous budgets,” he added before pointing out that the move must become the first step in full restoration of ANC payments, which were cut by €50m in Budget 2009.
“The failure of the Government to increase the Earned Income Tax Credit to match the PAYE credit, as committed to in the Programme for Government, maintains the inequity in the income tax system between employees and the self-employed and impacts disproportionately on lower income farmers.”
Mr Healy went on to say that the €200 increase in the Earned Income Tax Credit did not go far enough.
“The Government has chosen to continue the discrimination between employees and self-employed in the income tax system for yet another year,” he continued.
“It is simply not right that a farmer earning €16,500 will be paying €500 a year more in income tax than an employee next year.
“The Government has reneged on a clear commitment in the Programme for Government that the PAYE and Earned Income Tax Credits would reach parity, of €1,650, by 2018”.
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