Dáil Éireann debate -
Thursday, 29 Jun 1995

Vol. 455 No. 3

Written Answers - Definition of Fertilisers.

Noel Ahern

Question:

108 Mr. N. Ahern asked the Minister for Agriculture, Food and Forestry the plans, if any, he has to introduce legislation amending the 1951 Act altering the definition of fertiliser, artificial, manufactured; the reason organic fertilisers or products are subject to higher VAT rates; in relation to processing pure organic products to VAT free blended products or composts, the guidelines, if any, there are to determine the percentage of the total product should be added for VAT-free status; and if he will make a statement on the matter. [12159/95]

Minister for Agriculture, Food and Forestry (Mr. Yates)

I assume the Deputy is referring to the Fertilisers, Feeding Stuffs and Mineral Mixtures Act, 1955 which defines a fertiliser as any article manufactured for use as a fertiliser of the soil. Regulations made under that Act provide for the sale of a wide range of products including organic compounds. I have no plans for amending the Act.

VAT legislation in this area provides for exemption from VAT liability when fertiliser products, as defined under the Act, are supplied in units of not less than 10 kilogrammes. I have no function in regard to VAT, the rates of which are a matter for the Minister for Finance and the administration of which is a matter for the Revenue Commissioners. Occasionally the Office of the Revenue Commissioners requests technical advice from my Department on products for which they have received applications for exemption.

In general, manufactured products, including organic products, may be classified as fertilisers provided a plant nutrient element is present which would provide added growing power to plants.