Blatant discrimination against Irish farmers in Budget

Commenting on the publication of the Finance Bill 2009, IFA President Padraig Walshe said there is huge anger in rural Ireland over the blatant discrimination against farmers in the implementation of the income levy.

He said "farmers are being forced to pay the income levy on money allocated to essential farm business investments on top of their normal net income. This clearly targets farmers for a higher tax take than other taxpayers."

Padraig Walshe said that the Budget cuts had already brought 20,000 farmers to IFA protest meetings. The Government's decision to implement a crude discriminatory basis for the calculation of the income levy will add to farmer anger, and IFA's campaign against the Budget cuts will continue.

"The failure by the Minister for Finance, Brian Lenihan, to respond to IFA's case to amend the Budget proposals to exclude capital allowances from the income levy calculation adds to the damage done to farming by Government cuts to farm schemes including the Disadvantaged Areas, Suckler Welfare, Installation and Retirement schemes."

Padraig Walshe concluded "the income levy blow in today's Finance Bill comes on a bad day for Irish agriculture, when Minister Brendan Smith agreed to additional modulation cuts of 5% in the Single Farm Payment in the CAP Health Check Negotiations."