Dáil Éireann Debate, Tuesday - 10 October 2023
131. Deputy Carol Nolan asked the Minister for Finance if he will retain section 664A of the Taxes Consolidation Act 1997 and extend it to include agricultural contractors to mitigate the increased cost of production; and if he will make a statement on the matter. [44028/23]
View answerSection 664A Taxes Consolidation Act 1997 (TCA) provides additional relief for farmers in respect of an increase in the carbon tax on farm diesel. In addition to being able to claim a tax deduction for expenditure incurred on farm diesel (including any carbon tax charged in respect of the diesel), in computing their taxable farming profits, farmers may claim a further deduction for farm diesel in an amount equal to the difference between the carbon tax charged and the carbon tax that would have been charged had it been calculated at the rate of €41.30 per 1,000 litres of farm diesel (the 2012 baseline).
Decisions regarding tax incentives and reliefs, whether in respect of the introduction of new measures or the amendment of existing measures, are normally made in the context of the Budget and Finance Bill process. Such decisions must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines.
As the Deputy will be appreciate, it is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters which might be the subject of Budget decisions.
