ICOS President, Martin Keane today reacted to Budget 2017 and the range of new taxation and spending measures approved for the farming and agri-food sector.

Mr. Keane stated today “ICOS welcomes the adoption of a tax adjustment measure that will allow the deferral of tax bills for farmers in income averaging in order to alleviate cash flow concerns during a difficult year. Furthermore, I also acknowledge the increase in the earned income credit to €950, the increase in the farmer’s flat rate addition from 5.2% to 5.4% and the proposal to reduce the cost of credit available to farmers.”

Mr. Keane also added “ICOS over the past 12 months engaged with the Department of Agriculture and Finance on the development of a new volatility taxation measure designed to enable a farmer to voluntarily defer 5% of his income in any given year, to be drawn down within 5 years. ICOS is disappointed that the measure was not finalised in time for this year’s budget, that said, we acknowledge that the Minister is committed to further consideration. ICOS strongly believes that a strategic and long term taxation measure based on the ICOS “5-5-5” proposal is required for dairy farmers as the volatility cycle is getting deeper and longer, becoming a significant threat to the sole trader, family farm model of production.”