Christopher O'Sullivan (Cork South West, Fianna Fail) | Oireachtas source

Tonight, I raise an incredibly serious issue that has emerged over recent times. There are several essential farm items for which farmers can no longer reclaim or get a refund on VAT. This is a disaster for farmers across the length and breadth of Ireland. Farmers are trying to invest in their farms and their farms' efficiency and sustainability. They are putting multiples of thousands of euro into their farms to make them more efficient and sustainable. Now, however, they essentially are being penalised for that because they can no longer claim back VAT on items when they were once able to do so, in many cases, at a VAT rate of 23%. This is costing farmers thousands of euro. In particular, many young farmers are so far down the line in this regard. They are getting bulk tanks installed or have their planning permission or have the contractors ready to go and of greater concern, they may have sorted out bridging loans in the full expectation that they would get this VAT refund. In some instances, this is coming to €40,000 or €50,000 or even more. Now, however, it is emerging that they will not get that refund. This has to be rectified immediately because these are for essential farm items, such as milk bulk tanks, automatic calf feeders, automatic scrapers and meal bins. These are essential items. What I mentioned relates to the dairy sector but farmers are being penalised right across the farming sector. This has to be rectified immediately. It is a serious issue that is causing concern and anxiety across the farming sector.

To be fair, in the last couple of months, the farming sector has been dealt blow after blow. If you are in derogation, you are leading to a situation where by January, you will have to get rid of cattle. That is already causing concern. The price of milk is nowhere near what it was more than 12 months ago. That is causing concern. There is a situation where, because of some issues with factories, fallen animals are being left on farms and are not being taken away. That is causing a serious issue. There is now also the issue where farmers are not able to claim VAT.

In Ireland, farmers in general do not register for VAT. That is the way it has always been. In other countries in Europe they do, but they do not do it here. I do not see why the Revenue Commissioners are hell-bent on penalising these farmers. I am pleading with the Minister for Finance to rectify this, to look at it, to talk to the Revenue Commissioners and to ensure these farmers can get a tax refund like they used to.

This is making a joke of the new TAMS ceiling. We celebrated that the new TAMS ceiling goes to €80,000. This completely erodes any benefit of that for most of these farmers. I am asking that this is looked at, reviewed and rectified immediately.

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