asked the Minister for Finance the total amount of farm income in Ireland; the proportion of that amount which is considered to be taxable.

Farm income for 1986 is estimated by the Central Statistics Office at £1,125 million. It is not possible to say what proportion of this represents taxable income.

In computing the figure of farm income no account is taken of the many legitimate personal and business allowances which farmeres may use in calculating their taxable incomes. The figure also includes the incomes of a substantial number of full-time farmers — perhaps as many as 70,000 — who have not yet been assessed for income tax. These latter farmers will be brought into the effective income tax system progressively over the next few years by means of the farm profile system.

At this stage of the finance year is the Minister in a position to say whether the income tax received from farmers in 1987 will show an increase or decrease on the 1986 figure?

Last year the estimated amount for tax was £36 million. I do not have the up to date figure for this year but it will be above that. In addition, as the Deputy will be aware, in the Finance Bill which is going through the House there is a provision for a reduction in the VAT refund payable to farmers from 2.4 per cent to 1.7 per cent which will bring in an additional £9 million. That fact is lost sight of in the debate and argument on the abolition of the farm tax. Last year it was supposed to have brought in £6 million and roughly the same figure was expected this year but only £250,000 was collected last year. This year we do not have to wait for the collection mechanisms to work in regard to £9 million.