Sinn Féin agriculture spokesperson Matt Carthy TD has called out the 2c per litre excise cut to agricultural diesel as “minimal and insufficient”. He said this comes at a time when “input costs are pushing them to the brink, and farmers and contractors will be astounded to learn that the reduction will be undone after just seven weeks if the carbon tax hike goes ahead on 1 May”.
Carthy was clear in his criticism of planned increases in the carbon tax, saying that increases in the cost of agricultural diesel are not being driven by the Russian invasion of Ukraine, or international factors or other global influences.
He asserted that the additional cost on farmers and contractors will be driven by the planned changes in the carbon tax on fuel from 1 May and September. “In a move widely derided as insufficient, the Government reduced excise on agri-diesel from €138.17 to €120.55 per 1,000l, or 2c per litre, from 10 March. However, the carbon tax element of excise duty on the fuel is set to increase on 1 May – bringing the charge back to €138.17.”
Carthy also noted that Minister for Finance Paschal Donohoe has acknowledged that a review into the status of farm contractors regarding carbon tax rebates is underway. “The minister has now confirmed that he intends to complete the exercise prior to the budget, though when pressed would not commit to bringing forward measures in the budget arising from that review.
He concluded that, “During a period of escalating input costs, farmers need support. One such support must be through a rebate of the carbon tax for those doing essential agriculture work for which there is no fuel alternative yet.”