Liam Burke
Question:152 Mr. L. Burke asked the Minister for Finance if he will abolish VAT rating on hurleys in view of the promises made by the Government in this regard; and if he will make a statement on the matter. [19360/97]
Written Answers. - VAT on Hurleys.
I am not aware of any promises made by the Government in this regard.
The position regarding VAT rates is governed by European VAT law with which Irish law must comply. Under the EU Sixth VAT Directive, member states may retain the zero rates they had in place on 1 January 1991, but they are prohibited from introducing new zero rates. As hurleys were not zero rated at that time, it is not now open to the Government to apply such a rate. Indeed, the introduction of new zero rates has been prohibited for some time.
As regards a reduced rate, goods and services to which reduced rating may apply are listed in annex H of the EU Sixth VAT Directive. In addition, items not on this list, but which were at a reduced rate on 1 January 1991, may, if a member state so decides, be placed at a "parking rate", i.e., a rate not less than 12 per cent, for the duration of the transitional regime. As hurleys are not listed in the directive, nor were they at a reduced rate on 1 January 1991, the standard rate, currently 21 per cent, must be applied.