Aontú TD urges government to align livestock VAT with flat‑rate addition

Aontú TD for Mayo, Paul Lawless, has called on the government to align the livestock VAT rate with the farmer flat‑rate addition in the upcoming budget.

Speaking to the Oireachtas Agriculture Committee on 29 September, Lawless said officials confirmed that the state has the power to correct the “VAT anomaly” affecting farmers. Since January, the flat‑rate addition paid to unregistered farmers has been 4.5 %, while VAT on livestock sold through marts remains at 4.8 % – the first time the flat rate has fallen below the livestock rate since the scheme began in 1990.

Lawless warned that farmers selling through marts lose 0.3 % on every animal, a loss he described as “not acceptable”. The Irish Co‑operatives Organisation Society (ICOS) told the committee that the discrepancy does not arise when transactions are completed privately between two unregistered parties, and that mart throughput is down 8‑9 %.

The TD highlighted that many farmers are not VAT‑registered and cannot reclaim VAT on feed, fertiliser, diesel or veterinary costs, yet they are deducted the 0.3 % difference at the mart. He urged Minister for Finance Simon Harris to align the rates, noting ICOS estimates the change would cost €5‑8 million – modest compared with the €61.5 million impact of last year’s cut to the flat rate.

Lawless stressed that the livestock rate is a matter for the government and can be adjusted as long as it remains under 5 %, calling for the rates to be kept aligned to avoid further penalties on farmers.

Source: Agriland. Photo: Pixabay / Pexels.