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Independent TD, Carol Nolan, has called on the Tánaiste and Minister for Finance Simon Harris, to tackle unfair ‘double taxation’ of VAT on Carbon Tax which she says particularly impacts farmers, who she says are being subjected to multiple layers of avoidable and unjustified taxation.
The Offaly Deputy said that support for farmers should beuded in Harris’s recent commitment to reducing the overall tax burden, which he reaffirmed ahead of the Summer Economic Statement due to be published later today.
Deputy Nolan said that while she acknowledges the pledge to prioritise tax reductions in Budget 2027, it is essential that farm families are not left behind as Government shapes its fiscal strategy.
She said farmers are being asked to invest heavily in efficiency, safety, animal health and emissions reduction, yet are simultaneously being penalised through outdated tax structures that actively undermine those very objectives.
Deputy Nolan also highlighted the Irish Farmers’ Association’s proposals to introduce a 0% VAT rate on animal vaccines and essential farm medicines and the need to remove actively farmed land from the Residential Zoned Land Tax.
The Offaly TD said one of the most pressing issues is the double taxation created by applying VAT on top of Carbon Tax, a problem the IFA has repeatedly highlighted and which she has raised directly with the Minister through parliamentary questions:
“Charging VAT on carbon tax is indefensible. It is literally a tax on a tax,” she said.
“Farmers are already carrying the cost of the carbon tax itself, and then they are hit again with VAT on top of it. If the Government is serious about reducing the tax burden, then ending this double taxation, through engagement with the EU must be an immediate priority. It is unfair, it is counterproductive, and it is placing additional pressure on farm families at a time when they are being asked to invest more than ever in environmental compliance and efficiency,” Deputy Nolan said.
Deputy Nolan added that the Minister for Finance must now demonstrate that his tax‑cutting commitments are not simply headline promises but will translate into meaningful relief for farmers:
“Farmers cannot be expected to absorb escalating costs while also funding the transition to lower‑emissions farming. The Minister must ensure that Budget 2027 and indeed the Summer Economic Statement delivers real, practical tax relief for farmers, particularly measures that remove double taxation, reduce unnecessary VAT burdens, and support investment in safer, more efficient, lower‑emissions farming,” Deputy Nolan said. .
The Tánaiste has said there “has to be a tax package that delivers for working people” in the next budget.
Simon Harris said the next budget needs to be “value for money” and vowed the Government will “strive to improve public services”
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