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Dáil Éireann debate -
Thursday, 2 Apr 1992

Vol. 418 No. 2

Written Answers. - Agricultural Services.

Edward Nealon

Question:

38 Mr. Nealon asked the Minister for Finance if, in connection with his budget announcement of extending VAT registration to farmers who supply to other farmers agricultural services to any significant extent, his attention has been drawn to the fact that this will introduce competitive distortion in the market in relation to insemination services as AI stations service only about half of the total market with all of the rest being taken through natural inseminations by some 23,000 privately-owned bulls; and if he will make a statement on the matter.

Edward Nealon

Question:

40 Mr. Nealon asked the Minister for Finance if his attention has been drawn to the fact that VAT on AI services as announced in the budget will reduce the competitiveness of AI stations and would significantly reduce the demand for service compared with untaxed alternatives and will result in consequent damage to the genetic improvement that AI stations are continuing to make.

I propose to answer Questions Nos. 38 and 40 together.

I have received various representations in this connection from the licensed AI stations who have explained the particular difficulties which taxation of their services would cause for them. I have taken note of these concerns and will bear them in mind when finalising my Finance Bill proposals.

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