The aim of the amendment is that a higher flat-rate addition be applied to supplies by tillage farmers than to agricultural supplies by other flat-rate farmers.
As EC law allows member states, as an option, to fix different flat-rate additions for different sub-divisons of agriculture, I have no problem of principle with the proposal. However, any flat-rate addition must be based on macro-economic statistics for the agricultural sector involved. In practice, information of the detailed type required is not available on a reliable basis. The data which are available here simply allows for the calculation of a single or average flat rate across the agricultural sector as a whole.
One consequence of applying different flat-rate additions would be that an increase in the flat rate to one sector of agriculture would be at the expense of another sector which would, accordingly, receive a lower flat-rate than the single addition now applying. It has always been based on an across the sector basis which is to the benefit of the farmers.
It should, of course, be borne in mind that any farmer who feels that the existing flat-rate addition does not adequately compensate him for his inputs may register for VAT and reclaim the VAT on his inputs directly. At present, the majority of intensive tillage farmers would be included in the approximately 2,000 VAT registered farmers.