Independent TD Carol Nolan has urged the Irish government to remove VAT on carbon tax for farmers, calling the practice a double tax that penalizes those investing in lower emissions farming. She argues that charging VAT on top of carbon tax undermines climate goals and adds unnecessary costs to farm families. The issue is part of broader pre budget discussions for 2027, with the IFA also pushing for a 0% VAT rate on animal vaccines and removal of actively farmed land from the Residential Zoned Land Tax. Nolan wants the government to engage with the EU to end the tax on tax structure. If implemented, removing VAT from carbon tax could lower operational costs for farmers and make emissions reduction investments more affordable. The debate highlights how carbon pricing design at the national level can directly affect adoption of low carbon practices in agriculture.
