Budget 2021 has been prepared against a background of extraordinary uncertainty regarding near-term economic and budgetary prospects, according to Minister for Finance, Paschal Donohoe TD.
He said it has been framed on two major assumptions underpin the budget – a no-deal Brexit and the assumed continued presence of Covid-19 in Ireland next year and the absence of a broadly available vaccine.
Key points for farmers:
- VAT rate reduced to 21% until February 28th, 2021;
- Self-employed Earned Income Tax Credit increased by €150 to €1,650;
- Carbon tax to increase by €7.50 from €26-€33.50 per tonne/CO2. This increase will be applied to auto fuels from tonight and all other fuels from May 1st, 2021;
- Increase in excise duty on pack of 20 cigarettes by 50c bringing cigarettes in “most popular price category” to €14.00;
- Farm consolidation stamp duty relief to be extended by 2 years to December 31st, 2022;
- Unregistered farmers’ (flat-rate farmers) flat rate addition to increase to 5.6% with effect from January 1st;
- Allocating €1.5 billion to Department of Agriculture, Food and the Marine – an increase of €179 million on the 2020 allocation and will provide funding for the necessary control for agri-food exports and imports from Britain after the end of the Brexit transition period this year, for a new food ombudsman, for a range of new agri-environmental pilot schemes to be rolled out next year and the continuation of many agri schemes across the sector, according to Michael McGrath TD;
- Allocating €341 million to the Department of Rural and Community Development;
- €79 million for pilot agri-environment/ REPS schemes and funds to roll over the existing GLAS, BDGP and sheep welfare schemes;
- €45 million allocation for a Covid Beef scheme to improve carbon efficiency;
- Increased funding for the Organic Farming Scheme to €16 million from €12 million.