Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy may be aware, there are existing reliefs from CGT in relation to the disposal of farming assets and farm restructuring relief.

Farming assets are relieved from CGT where the person disposing of the asset(s) is aged 55 or over and both owned and used the asset(s) for the ten years prior to the disposal. While this relief is commonly referred to as Retirement Relief, it is not necessary to retire from the business or farming in order to qualify. The operation of the relief, as well as the various thresholds available, differ between the disposal of a farm to a child and disposals to anyone other than to a child.

Relief from CGT is also available where an individual disposes of or exchanges farmland in order to consolidate an existing holding. To qualify for the relief, the first sale or purchase must occur between 1 January 2013 and 31 December 2022. The next sale or purchase must occur within 24 months of the first sale or purchase.

In relation to your query regarding a reduced rate of CGT, there are doubts as to the potential level of additional yield this could raise and its sustainability over time. The current economic environment may increase the uncertainty around any potential Exchequer impact. Furthermore, there is a significant risk of deadweight arising from a reduction in the CGT rate, as many assets would be sold regardless of the rate at a particular time.

In terms of the cost of changing the headline rate of CGT, each 1% reduction / increase in the headline rate of CGT is estimated to be €33 million, assuming no behavioural change. A 5% reduction in the CGT rate in a single Budget would have an Exchequer impact of €164 million, assuming no behavioural change.

As with all taxes, CGT is subject to ongoing review, which involves the consideration and assessment of the rate of CGT and the relevant reliefs and exemptions from CGT. I currently have no plans to make a significant reduction in CGT rates at the this time.

Paschal Donohoe (Dublin Central, Fine Gael)
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The VAT rating of goods and services is subject to the requirements of the EU VAT Directive, with which Irish VAT law must comply. In general, the VAT Directive provides that all taxable goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT.

The supply of low emission slurry spreading equipment is not listed in Annex III. There is no provision under the Directive to apply a reduced VAT rate to this equipment.