The VAT rate on non-oral respiratory vaccines is likely to be reduced to zero in the upcoming budget, the Irish Farmers Journal understands.

Presently, the majority of veterinary vaccines for farm animals are injectables and are subject to a 23% VAT rate as a result.

Sources within the industry expect the move which will bring it into line with the 0% VAT rate already applicable on oral vaccines.

Such a measure would help reduce the use of antibiotics and would be seen as a positive move to combat anti-microbial-resistance (AMR).

Over the last number of months, livestock exporters have also called on more farmers to vaccinate their stock against respiratory diseases – particularly in weanlings – and a reduction in the VAT rate would help enhance the health of Irish cattle going to those markets.

Calling on the Government to reduce the rate, David Hall, IFA animal health chair, said: “The Department of Agriculture committed to introducing a zero rate from 2025, yet farmers are still paying 23%.

“That delay is difficult to justify when the EU VAT directive allows the Government to apply a zero rate and the move would be cost neutral for the Exchequer,” he said.