Written answers

Tuesday, 4 April 2006

9:00 pm

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 236: To ask the Minister for Finance if he will double the VAT refund to dairy farmers to 10%, which farmers in most EU countries are in a position to reclaim (details supplied). [13139/06]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The position is that the calculation of the farmers' flat rate is governed by EU VAT law and is based on the relevant macroeconomic 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 a mechanism for providing income support to farmers or to compensate for increases in wages or costs generally.

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