Sinn Féin's spokesperson on Agriculture and Food, Martin Kenny TD, has said it is very concerning that the reduction to the farmers' flat-rate of VAT in last year’s Budget is expected to leave farmers €61.5 million worse off this year.

Teachta Kenny said: "In a response to a parliamentary question I asked the Minister for Finance, I have been informed that it is estimated that the exchequer will gain €61.5 million this year from the change in the flat rate of VAT in last year's budget.

"This is money that is being taken out of farmers pockets at a time when farmers are struggling financially with increased input costs this year such as fertiliser and meal, plus the skyrocketing cost of fuel in the last few months. "This has angered a lot of farmers particularly at marts around the country where farmers who are selling livestock can see on their sales receipt that they are paying VAT. While VAT has always been charged at the livestock rate of 4.8%, this would usually be offset by a VAT credit at the flat rate which was 5.1% last year.

"However, as the flat rate has gone below the livestock rate, farmers are now paying VAT on sales for the first time in years.

"Farmers that are unregistered for VAT can claim back VAT at the flat rated on fixed items like slatted sheds, but due to the reduction in the flat rate the amount that they can claim back is less than in other years.

"This is of huge concern to farmers, and I would hope that the Minister for Finance would examine this in this year's budget and hopefully bring the rate back up or at least above the livestock rate."