Seymour Crawford (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context

Question 353: To ask the Minister for Finance the number of farmers who have benefited to date from the decision in budget 2005 to allow relief on stamp duty where farmers swapped land to consolidate their farm holdings; his views on whether the proposed structure is too limited and should be available to any farmer who can prove that he has sold off an out-farm to buy an adjacent holding; and if he will make a statement on the matter. [33006/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

As the Deputy will be aware, in the 2005 budget I announced a special one-off stamp duty relief relating to an exchange of farm land between two farmers for the purposes of consolidating each farmer's holding. This new relief means that no stamp duty will be charged on an exchange of such lands where the lands are of equal value. In a case where the lands exchanged are not of equal value, stamp duty will only be charged on the amount of the difference in the value of the lands concerned. The details are contained in section 121 of the Finance Act 2005. The scheme began on 1 July 2005.

I am advised by the Department of Agriculture and Food that Teagasc has indicated that farm consolidations certificates are currently being processed for 12 individuals, six sets, but since it began on 1 July 2005 they have had queries from 70 people with potential to benefit from the existing scheme. I am also informed by the Revenue Commissioners that, as the scheme was only recently introduced, the numbers of claims in respect of the relief received to date by them have been insignificant.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context

Question 354: To ask the Minister for Finance his views on whether the current flat rate VAT refund of 4.8% is an adequate refund to farmers in view of the drop in product prices resulting from the decoupling and the continuing increase in the cost of farm inputs; and if he will make a statement on the matter. [33008/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

The position is that the calculation of the farmers' flat rate is governed by EU VAT law and is based on the relevant macro-economic data for the farming sector for the preceding three years. The purpose of the flat rate addition is to compensate unregistered farmers for VAT which they incur on their business inputs. The flat rate addition is not there to provide any form of income support to farmers or to compensate for increases in wages or costs generally.

The flat rate refund for unregistered farmers is examined every year in the lead up to the budget. It is not customary for me to comment on any possible changes to the existing rate which may arise in the context of the forthcoming budget.