Farmers paid just 1.3% of income tax total in 1998/99, says report

Farmers contributed only 1

Farmers contributed only 1.3 per cent of the income tax take last year, according to figures released by the Department of Agriculture, Food and Rural Development.

The figures, in the Annual Review and Outlook, show that according to Revenue Commissioners' figures, farmers paid £83 million in income tax in the 1998/1999 tax year. The review showed the PAYE sector contributed 84.2 per cent of the income tax take, while the self-employed paid 14.5 per cent.

The average individual tax payment was estimated at £5,289 for the PAYE sector, £5,637 for the self-employed and £1,067 for farmers.

In the 1998/99 tax year, an estimated 96,000 farmers were assessed for tax and 16,800 cases who were not assessed annually had their position reviewed periodically.

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This meant the number of farmers on record with the Revenue Commissioners stood at approximately 112,800. But only 37,000 of these were liable for tax. "The estimated yield from farmers in respect of income tax on farming profits in 1999 was £83 million and a further £27 million was paid by farmers in PRSI contributions," said the report.

The report added that farmers, and/or their spouses, also paid £104 million income tax on other income in 1996/1997, the last period for which figures were available.

This figure was paid by some 28,400 individuals or couples, said the report.

The report, which was introduced by the Minister for Agriculture and Food, Mr Walsh, in Portlaoise yesterday, showed the tax take from farm profits had fallen since 1997.

In 1997, farmers paid £85 million in income tax.