ICSA president labels new lab charges as a ‘stealth tax on farmers’

ICSA president Patrick Kent has labelled the new regional veterinary laboratory (RVL) charges as “just another stealth tax on farmers”. From March 31, there will be changes made to the charges for testing of animals at Regional Veterinary Labs.

The Department argues that it is bringing in these changes to bring the existing RVL charge in line with overall disposal costs at knackeries. Furthermore, RVL post-mortem fees will now be subject to VAT at 23 per cent. In the case of an adult cow, the new VAT-inclusive RVL charge to cover post-mortem and disposal will be almost three times that of the existing cost (Before March 31st = €23.35 / After March 31 = €68.72).

Mr Kent said: “The new RVL waste disposal charge is effectively another stealth tax on farmers which arises from the Department no longer wanting to absorb the cost of animal disposal. I have serious concerns that some farmers will now be disincentivised from bringing animals to RVLs, which could reduce the important animal health information service that the RVLs provide.”

Mr Kent was also critical of Revenue’s decision to apply the 23% VAT rate to laboratory testing, saying that the change was “unnecessary and would inevitably eat further into the bottom lines of Irish livestock producers. Farmers have seen an array of increased charges from state agencies over recent years all of which undermine the viability and competitiveness of Irish farming.”


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