Sep 7th, 2009

ICMSA response to Commission on Taxation proposals

‘The proposal for a carbon tax would fall disproportionately on the agri-food sector and considerably worsen our competitive position to an extent that would hinder any contribution from the sector to the prospects of export-led recovery. The sector’s total annual expenditure on oil and other energy amounts to €650 million and there is actually a good case to be made for a sectoral allowance or limited exemption – if we are serious about rebuilding our exports. ICMSA welcomes the proposal for an income tax credit for self–employed, we’ve sought this for 20 years and it’s long overdue. This allowance should be introduced over a very short term and it should be equal to the PAYE allowance. We strongly oppose the proposed withdrawal of tax allowances on milk quota purchase and stock relief and we would question the need for a review of the land leasing tax provisions. Why would they be reviewed if the government is so intent on moving towards farm consolidation? We welcome the proposed re-introduction of indexation for Capital Gains Tax and roll-over relief for CPOs. These measures are sound and should be made retrospective. The proposal regarding changes to the rules on CAT must not amount to the re-introduction of the old and penal death duties where families had to borrow to pay that tax.’

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