Dáil Éireann Debate, Tuesday - 23 June 2015
280. Deputy Seán Kyne asked the Minister for Finance with regard to the agri-taxation review and the measures contained therein, the progress at introducing the recommendations, such as increased land mobility, assisting with succession, new stock relief, and stamp duty exemption; and if further recommendations in the review are to be introduced. [25159/15]
View answerIn Budget 2014, I announced a review of the tax supports available to the agricultural sector in Ireland in conjunction with the Minister for Agriculture, Food and the Marine Simon Coveney TD. The purpose of the review was to analyse the benefits of the various tax measures to the agriculture sector and the wider economy versus the costs and to ensure tax policy aligns with the objectives set out in Food Harvest 2020.
The Review was overseen by a working group made up of the Department of Finance, the Department of Agriculture, Food and the Marine and the Revenue Commissioners. The Review included an independent cost benefit analysis, an international benchmarking exercise and a public consultation process. Following a competitive tendering process, Indecon International Economic Consultants were appointed to carry out the independent cost benefit analysis and the international benchmarking exercise. The report of the Agri-Taxation working group was published with Budget 2015 and a number of the group's recommendations were enacted in the subsequent Finance Act. These measures in particular were selected as the ones most likely to help younger and qualified farmers, improve land usage and give farmers greater flexibility to allow them to smooth out their tax exposures arising from variability in farm incomes.
The recommendations in the Agri-Taxation Report which have not been implemented to date, are still under active consideration.
I am advised by the Revenue Commissioners that they do not yet have details on the success of the measures introduced in Finance Act 2014 on foot of the agri-tax review as the tax returns for the affected years of assessment are not yet due to be filed. In relation to the increased land mobility measures, final figures are again not yet available and I understand that the Department of Agriculture, Food and the Marine, along with Teagasc, are currently collecting data in this respect.
Finally, I am advised by the Department of Agriculture, Food and the Marine that they are still in discussions with the D-G Agriculture and Rural Development in relation to whether or not the relief from stamp duty on long term agricultural leases would constitute a legal State Aid. Until such confirmation is received from the European Commission no progress can be made on this point.
