Budget 2019: Miscellaneous measures which may affect agriculture

There are a number of different measures announced in Budget 2019 which – though not all directly connected to farming – may affect Irish agriculture, according to agricultural consultancy and professional services firm FDC Group.

Following on from analysis on budgetary impacts on farm incomes, capital tax and grants for the agri sector, these are the latest budgetary changes pointed out by the Cork-headquartered company.

Donncha Collins, senior tax consultant with FDC (Farm Development Co-Op), highlighted additional measures announced in the budget which are of note for farmers.

Beginning on a bright note, Collins pointed out that no immediate change to the carbon tax was announced. However, a 1% surcharge on Vehicle Registration Tax (VRT) was brought in, applying to all diesel passenger vehicles.

In addition, the minimum wage was increased by Minister for Finance Paschal Donohoe today, from €9.55 up to €9.80 per hour.

There has been no change made to the corporation tax rate of 12.5%, Collins said, while the mortgage interest allowable deduction against rental profits for landlords has increased to 100%.

All Social Welfare payments – including Farm Assist – have seen a €5 increase, which will kick in from March 2019, while the Christmas bonus payment has been restored for this Christmas.

Meanwhile €50,000,000 is to be spent on the implementation of the PAYE Modernisation system, which is due to be operational by January 1, 2019, Collins noted.

Finally, there will be two extra weeks of parental leave with effect from November 2019 for employees.