Dáil Éireann debate -
Wednesday, 7 Oct 1992

Vol. 423 No. 1

Written Answers. - VAT on Hurleys.

Peter Barry

Question:

124 Mr. Barry asked the Minister for Finance the change, if any, there has been in Government policy concerning VAT on hurleys; and if VAT cannot be eliminated from purchase of hurleys, the reason it cannot be reduced to a nominal percentage.

Minister for Finance (Mr. B. Ahern)

Hurleys have been standard-rated for VAT since the introduction of the tax in 1972. Over the years, numerous requests for zero-rating have been turned down because such a move is precluded by EC law.

New VAT rules have recently been agreed at EC level to apply when the Single Market comes into being with effect from 1 January 1993. In so far as VAT rates are concerned, these rules provide for: (i) the retention, at least until end-1996, of thosezero-rates and super-reduced rates (e.g. our livestock rate of 2.7 per cent) which were already in force on 1 January 1991; (ii) the application of one or two optional reduced rates, subject to a minimum of 5 per cent, to a specified list of goods and services; (iii) the application of a standard rate, subject to a minimum of 15 per cent, to all other taxable goods and services not covered by (i) and (ii) above.

Since sports goods generally, including hurleys, are not included on the list of specified goods and services referred to at (ii), and the provision at (i) only relates to pre-existing rates, it follows that they must remain subject to the standard rate of VAT in the post-1992 regime.