Written answers

Tuesday, 23 September 2014

Department of Agriculture, Food and the Marine

Tax Reliefs Availability

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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273. To ask the Minister for Agriculture, Food and the Marine if he will introduce a tax deposit scheme to manage income viability for the farming sector. [35912/14]

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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274. To ask the Minister for Agriculture, Food and the Marine his views on the retention of the 90% agricultural relief and the CGT retirement relief to support the transfer of viable family farms to ensure continuity in the years ahead. [35913/14]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 273 and 274 together.

Taxation policy is primarily a matter for the Minister for Finance. I have on-going contact with the Minister for Finance to ensure that tax policy reflects the Government’s commitment to agriculture and, in particular, to the objectives of smart, green, growth outlined in the Food Harvest 2020 strategy. A Review of tax measures in the farming sector, a joint initiative between my Department and the Department of Finance, was announced in Budget 2014. The purpose of the review is 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 Minister for Finance stated in his budget speech that “the objective of the review is to identify what works and what doesn’t, and redirect the existing level of tax expenditure towards activities of maximum benefit to this sector of the economy”.

The Review, which is currently ongoing, is being overseen by a working group made up of the Department of Finance, my Department and the Revenue Commissioners. The Review includes an independent cost benefit analysis, an international benchmarking exercise and a public consultation process.

There was a good response to the written submission phase of the public consultation process; 46 submissions were received. Consultative meetings with 21 key stakeholders were held last May. The submissions and meetings included proposals to amend current measures and some new proposals, all of which will be considered by the working group.

A number of stakeholders have proposed the introduction of a ‘tax deposit’ scheme and this proposal is being considered by the working group.

As major existing tax measures, Agricultural Relief from Capital Acquisitions Tax and Retirement Relief from Capital Gains Tax are also being considered by the working group.

It is likely that the working group report will be finalised shortly and that any recommendations will be considered in the context of Budget 2015. It is expected that the Review will influence tax policy in the agriculture sector for a number of years to come.

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