| In a detailed submission to the Minister for Finance, Michael Noonan, IFA has set out the measures required to improve the efficiency and competitiveness of Irish agriculture through land mobility and structural change. IFA President John Bryan said, “IFA welcomes the commitment in the Programme for Government to promote greater land mobility, encourage involvement of young farmers and to support the recommendations of the Food Harvest 2020 report. Farmers require supportive Government policies, through necessary taxation measures and farm structural reform schemes, if the growth targets set out in this report are to be achieved.” He continued, “While IFA is aware of the commitment in both the National Recovery Plan and the EU-IMF ‘Memorandum Of Understanding’ to reform capital taxes by end 2011, any reduction or removal of key farm taxation measures would have the effect of reducing both the productivity and growth potential of the agriculture sector.” Mr Bryan said, “The taxation measures currently in place are critically important to ensuring reform and growth in the agriculture sector through encouraging intergenerational farm transfers and increasing the availability of land.” The IFA submission identifies both the structural weaknesses of the Irish agriculture sector today and its potential for growth. This will be achieved through: 1. Encouraging entry into and exit from farming; 2. Increasing land mobility; and 3. Promoting investment in farming. Key proposals in the submission are: - Retention of Stamp Duty Relief for Young Trained farmers, Capital Gains Tax (CGT) Retirement Relief for qualifying farmers and 90% Agricultural Relief for recipients who put the land into efficient agricultural use; - Reduction of stamp duty rates for farmland, introduction of CGT relief for farm consolidation and continuation of the land leasing tax exemption scheme; and - Retention of capital allowances and stock relief to encourage farm investment and simplification of the taxation system for sole traders. |
Tuesday, 03 May 2011 15:55