Livestock rate of VAT must be reduced in this year’s budget says Leitrim TD

Sinn Fein spokesperson on Agriculture and Food, Martin Kenny TD, is calling on the Government to adjust the livestock rate of VAT down in the forthcoming budget so that it is equal to or less than the flat rate of VAT. “This issue of the flat rate of VAT was discussed at the Joint Oireachtas Committee on Agriculture, where we had members of the department of Finance, Revenue and representatives from livestock mart organisations attending,” he said.“In last year’s budget the government reduced the flat rate of VAT from 5.1% to 4.5% which according to a Parliamentary Question I asked, stated that this change in the flat rate of VAT will cost Irish farmers over €60 million this year,” Deputy Kenny added.

He went on to say that farmers are angry about the issue.“This has caused a lot of anger among farmers who have traditionally seen either no VAT charged or a small rebate of VAT given when they sell livestock in the mart,” Deputy Kenny stated.“The department of Finance and Revenue stated that the flat rate of VAT is based on a calculation of the VAT farmers pay on inputs over the previous three years and they are bound by this under EU legislation,” he added.“However, they also stated that they do have scope to adjust the Livestock rate of VAT and it can be set anywhere between 0% and 5%,” Deputy Kenny continued.

He went on to claim that farmers were treated unfairly on this issue in last year's budget.

“I and my colleagues in Sinn Fein are calling for the Livestock rate of VAT to be adjusted down in this year’s budget, and that in future when the Flat rate is changed, the Livestock rate is also adjusted to be either equal to or less than the Flat rate of VAT.“Farmers have been unfairly penalised financially this year as a result of the government’s budget decisions last year and this needs to be rectified in Budget 27,” he stated.