The national animal health chair of the Irish Farmers’ Association (IFA), TJ Maher has called on the government to deliver a zero-VAT rate on non-oral animal vaccines from January 1, 2025, in the upcoming budget.
Maher said the rate of VAT charged on animal vaccines is a decision for the government in the budget as the EU reduced VAT rates directive allows for member states to apply a zero-VAT rate on these products.
While a zero-VAT rate is already applied to oral vaccines in Ireland, the standard VAT rate of 23% still applies to non-oral vaccines.
A zero-VAT rate could have been applied in 2022, according to Maher who said the Department of Agriculture, Food and the Marine (DAFM) and the government “unnecessarily delayed” reducing the rate until 2025.
“The Department of Agriculture committed to reducing the rate to 0% in 2025 from the current rate of 23% to IFA and publicly in June 2022 based on the facilitation provided in the EU VAT directive.
“The time has now arrived for the Minister for Agriculture, Charlie McConalogue and his government colleagues to deliver on this commitment in the upcoming budget and enact the 0% rate on animal vaccines from January 1, 2025,” he said.
Animal vaccines
Maher said a zero-VAT rate on vaccines would save farmers up to €10 million annually and is a “positive step” the government can take in supporting farmers to enhance animal health and welfare and to reduce the need for antibiotics on farms.
Emphasising the importance of farmers having access to competitively priced vaccines, he said almost €40 million is being spent every year on vaccines, 23% or almost €10 million of which is VAT which “does not need to be applied”.
Maher said there is now a “real opportunity for government to show if they truly support farmers and industry” in reducing antimicrobial resistance (AMR).
He added that the DAFM has a “serious role to play” in ensuring vaccine availability for farmers which is “critical” to protect and maintain the health, welfare and productivity of their animals while reducing the needs for antibiotics.
The IFA national animal health chair said over the past number of years, farmers have experienced increasing levels of certain vaccine shortages at “critical” usage times, and the situation for a number of products is “worse” this year.
Maher called on Minister for Agriculture, Food and the Marine, Charlie McConalogue to ensure DAFM officials “act immediately to address the shortages of important vaccines that farmers are encountering”.