asked the Minister for Finance the percentage of total income taxation revenue contributed in the last financial year by farming.
Ceisteanna—Questions. Oral Answers. - Income Tax on Farmers.
23.
It is estimated that the income tax paid in respect of farming profits represented 1.3 per cent of total income tax receipts in the year 1977.
Would the Minister not agree that it is an outrageous state of affairs that this should be allowed to continue? Does he intend it to continue so that over 20 per cent of the people should pay 1 per cent or 2 per cent taxation? Does the Minister intend to do anything about it?
The Deputy will be aware that the figure I have given him is in respect of the year 1977 and that changes have been made in the taxation system in regard to farmers, which will in fact not be reflected in tax receipts in the current year to any great extent but will in 1979 because the date for payment due will be 1 January 1979, which will not form part of the present financial year.
What is the Minister's prospective rate of taxation for farmers?
£17 million.
What percentage of farmers will pay?
I have not got that figure offhand.
In regard to this rather vexed matter of farm taxation, is full consideration being given to the fact that very few farmers in the country are within the category where they are liable to pay tax? If we go west and northwest we should be giving them something to try to retain them because they are fleeing the place as if there was a flood?
Would the Minister agree that there is a deep sense of grievance amongst PAYE earners that the highest proportion of taxation is on their shoulders and that it is very necessary to reform the entire system to ensure that all sections professional, self-employed and farmers are seen to shoulder a fair burden of taxation? This sense of injustice on the part of PAYE earners pours over into the possibility of getting agreement on incomes in general which affects economic policy in other areas.
I dealt with the system of farm taxation as I found it when I came into office and I made changes. I have not ruled out the possibility of further changes.
24.
asked the Minister for Finance if it is proposed to extend the income taxation system to more farmers.
Proposals regarding changes in the income tax code, including the taxation of farming profits, are considered in the budgetary context. If the Government decide on any changes, they will be announced in the budget.
Would the Minister have a full investigation of the plight of the vast majority of farmers in the country, not because of anything which happened this season but because of the general pattern of our farming assistance where it is a matter, as in the case of other walks of life, of the big getting bigger and more profitable and the small getting smaller and fewer? This is going on in farming at an alarming rate at the moment.
The remaining questions will appear on next Tuesday's Order Paper.
Could I give notice of my intention to raise on the Adjournment the availability of Irish passports to Irish citizens resident in Rhodesia.
I will communicate with the Deputy.
In view of the unsatisfactory nature of the reply given to Question No. 11 on yesterday's Order Paper I would like to give you notice of my intention to raise the matter on the Adjournment?
The same applies here. I will communicate with the Deputy.