A number of agri-tax reliefs that were previously only in place until June of this year have been extended in line with European Union state aid rules, the Minister for Finance has told the Dáil.
Minister Michael McGrath confirmed that farm restructuring capital gains tax relief will operate until December 31, 2025, while young trained farmer stock relief will run to December 31, 2024 and registered farm partnership stock relief to December 31, 2024.
The minister said in the Dáil during the second stage of the Finance Bill 2023:
“Deputies will be aware that a number of agri-tax reliefs were introduced or extended in Finance Act 2022, but, as the revised EU agricultural block exemption regulation, ABER, had not yet been agreed, it was at that time only possible to provide for them to the end of June this year.
“The new regulation came into effect on January 1, 2023.”
As a result of this new regulation Minister McGrath said accelerated capital allowance relief for capital expenditure on slurry storage has also been extended until December 31, 2025.
He also detailed that the farm consolidation stamp duty relief and the young trained farmer stamp duty relief has been extended to December 31, 2025 and that the period during which an individual can qualify for the latter relief after acquiring land had changed from four years to three.
Minister McGrath also confirmed to the Dáil that the restoration rates of excise on petrol and diesel and marked gas oil (green diesel) will take place in three stages in the coming months.
“This will see rates restored on June 1, by 6c/L of petrol, 5c/L of diesel and 1c/L of marked gas oil. On September 1, these rates will increase by a further 7c for petrol, 5c for diesel, 1c for marked gas oil.
“Rates will then be fully restored on October 31, with a final increase of 8c for petrol, 6c for diesel and 3c for marked gas oil,” he said.
But the Independent TD for Kerry, Danny Healy-Rae said the price hikes not only in diesel but also green diesel could have serious consequences for rural communities.
Deputy Healy-Rae said the price of green diesel was 38c/L before the war in Ukraine.
“Then, all of a sudden, it was driven up to €1.40/L and it is still hovering around €1.20/L all the time.
“That has the effect of driving up the cost of agricultural produce because you cannot do anything on a farm without a tractor.
“The sooner the government realises that when it drives up the farmer’s costs, it drives up the cost of the food being put on the consumer’s table or the housewife’s table, the better,” he warned.
According to the Independent TD the government’s decision to “claw back the increases on road diesel and petrol” will “hurt every man, woman and child working in rural Ireland, hitting rural Ireland more than any other place”.