Farmers’ contribution to income tax
The Minister said farming profits contributed 1.3 per cent of income tax receipts in 1977 and noted that recent tax changes would affect later receipts. He gave a prospective figure of £17 million but could not say how many farmers would pay; members debated fairness to PAYE earners and the burden on farmers, and the Minister said further changes were possible.
asked the Minister for Finance the percentage of total income taxation revenue contributed in the last financial year by farming.
Comment on this
It is estimated that the income tax paid in respect of farming profits represented 1.3 per cent of total income tax receipts in the year 1977.
Comment on this
Would the Minister not agree that it is an outrageous state of affairs that this should be allowed to continue? Does he intend it to continue so that over 20 per cent of the people should pay 1 per cent or 2 per cent taxation? Does the Minister intend to do anything about it?
Comment on this
The Deputy will be aware that the figure I have given him is in respect of the year 1977 and that changes have been made in the taxation system in regard to farmers, which will in fact not be reflected in tax receipts in the current year to any great extent but will in 1979 because the date for payment due will be 1 January 1979, which will not form part of the present financial year.
Comment on this
In regard to this rather vexed matter of farm taxation, is full consideration being given to the fact that very few farmers in the country are within the category where they are liable to pay tax? If we go west and northwest we should be giving them something to try to retain them because they are fleeing the place as if there was a flood?
Comment on this
Would the Minister agree that there is a deep sense of grievance amongst PAYE earners that the highest proportion of taxation is on their shoulders and that it is very necessary to reform the entire system to ensure that all sections professional, self-employed and farmers are seen to shoulder a fair burden of taxation? This sense of injustice on the part of PAYE earners pours over into the possibility of getting agreement on incomes in general which affects economic policy in other areas.