Sinn Féin spokesperson on Agriculture, Matt Carthy TD, has labelled the Minister for Finance’s response to a question on increases to taxes on green diesel as an attempt to “dodge” his previous commitment.
The increased carbon tax introduced by the government in Budget 2021 contained a deferred increase on green diesel, due to take effect on May 1st this year.
Teachta Carthy said: “The implementation of this carbon tax increase on green diesel was deferred until May.
Further delay implementation of tax increase
“In light of the ongoing pandemic and outworking’s of Brexit that are only now becoming apparent, Teachta Pearse Doherty and I asked the Minister for Finance if he would further delay the implementation of this tax increase.”
“Farmers, and the agricultural sector, in general, are currently facing great uncertainty. It does not make sense to take more money out of their pockets at this time.”
“More broadly, the carbon tax itself is self-defeating. The idea of increasing tax on fuel while public transport remains an unviable option in much of rural Ireland is an affront to those communities. Clearly, farmers and farm contractors have no options to change their machines at this stage.”
He said he pressed the minister specifically on the situation farm contractors find themselves in. He said they have made clear that due to unfair tax rules, they will have no choice but to pass this tax increase directly on to farmers.
“Minister Donohoe has acknowledged his previous commitment to address the concerns of farm contractors but has yet to indicate if he will abide by it.”
“There is also a role for the Minister for Agriculture in addressing this situation. In addressing what is effectively an agricultural tax, farm contractors need action and support from government.”
“In the coming weeks before this tax increase comes into effect, I intend to engage the ministers for finance and agriculture to ensure that the commitment to review this situation with farm contractors is delivered,” he concluded.